Context: 

The Ministry of Home Affairs (MHA) has recently cancelled the Foreign Contribution (Regulation) Act, 2010 (FCRA) registration of the Students’ Educational and Cultural Movement of Ladakh (SECMOL). SECMOL is an NGO associated with climate activist Sonam Wangchuk. The cancellation was made under Sections 8(1)(a), 17, 18, 19, and 12(4) of the FCRA act, 2010.

• • • The cancellation of the FCRA licence means SECMOL will no longer be able to receive foreign funding, severely restricting its ability to carry out its activities.

About FCRA Licence:

The FCRA licence (or registration) is a legal permission granted under FCRA act, 2010, by the Government of India (via the Ministry of Home Affairs, MHA) which allows NGOs (non‑governmental organisations), associations, individuals etc. to legally receive and use foreign contributions or foreign hospitality.

Key Features & Requirements:

1.       Who needs the FCRA licence
Any NGO, trust, society, or association in India which intends to receive foreign funds must obtain FCRA registration or prior permission. The registration is mandatory for organisations receiving foreign contributions. Without this, accepting foreign contribution is illegal.

2.      Permissible Purposes
Foreign contributions are allowed for activities with definite cultural, social, educational, religious, or economic programmes. The funds must be used for the purpose for which they were given.

3.      Eligibility Criteria
Some of the eligibility conditions include:

o    The NGO must be properly registered under Indian laws (Societies Registration Act, Trusts Act, Companies Act Section‑8 etc.)

o    It should have been operational for a specified minimum period, often 3 years.

o    It must have conducted actual activity in its chosen field for public benefit.

o    Its office‑bearers should have clean antecedents (e.g., not involved in communal tension, conversion, sedition etc.).

4.     Validity & Renewal

o    Once granted, the registration is valid for 5 years.

o    NGOs must apply for renewal within six months before expiry. If renewal is not applied, registration may expire.

5.     Bank Account

o    NGOs must open a designated FCRA bank account (in many cases in the State Bank of India, New Delhi) for receipt of foreign contributions.

Powers of the Government under FCRA:

The government has certain regulatory powers under the FCRA, including:

• • Cancellation of registration if the NGO is found violating provisions: misusing funds, false statements in the application, non‑use of funds, or if in public interest the registration should be cancelled.
  • Suspension of FCRA licence (e.g. temporarily for up to 180 days) pending inquiry. During suspension, NGO cannot receive fresh foreign funds.
  • Fines, penalties, or other legal action in cases of violations.