Ford foundation to be off "prior permission" list
New Delhi : Narendra modi government is set to remove the ford foundation from the "prior permission "category under the foreign contribution . (Regulation) At , 2010 , which requires each of the donation to Indian NGOs to be pre - approved by the home ministry .This come after the international donor's arm got itself registered under the foreign exchange management Act (FEMA) , 1999 , last month , thus brings it within the purview of an Indian law.
Ford foundation was placed on the " prior permission " list in April last year after the home ministry reportedly found that it was funding non - FCRA registered and profit - making NGOs . Both the acts are illegal under FCRA.
According to sources , the finance ministry signaled its approval to RBI on December 16 to register ford foundation `s Indian arm under FEMA . Ford foundation representatives subsequently met senior home ministry officials in last December to seek removal from the " prior permission" category , citing its complains with the government`s request to register under an Indian law.
"we have now suggested to ford foundation to put in a formal request , along with proof its registration under FEMA and other relevant papers",a senior officer said adding that the ministry is favorable including to granting the plea.
" Ford Foundation has indicated its appreciation of our insistence on compliance with the Indian laws and norms. we expect it to rout its grants to Indian NGOs carefully and in compliance with the law , " said the officer .
The government`s decision to place the top international charity in " prior permission" list in view of donation it had made in the past to non - FCRA registered entities , including activist Teesta Setalvad`s firm Sabrang .
Communications and publishing Pvt Ltd , had evoked sharp criticism , with the action being described as part of a sustained crackdown on NGOs . The move had even prompted ambassador Richard Verma to warn of a "potentially chilling effect" that the regulatory steps would have on NGOs and civil society.
The ambassador`s intervention and a series of meetings between the ford Foundation brass and senior government officer , including from the PMO and home ministry ,finally led to a thaw with an arrangement being worked out in July under which Ford agreed to register its Indian arm under FEMA and the home ministry allowed the donor to utilise funds from its bank accounts here to pay salaries to its 50 - odd staff here .
Incidentally ,rod Foundation has been operating an Indian office in Delhi for almost six decades on the basics of an invite extended by then PM Jawaharlal nehru and without out being registered under any Indian law .While the previous dispensations never insisted found nothing wrong with this , the Modi government made it plain to the foundation that it could not be allowed to dodge the law of the land . The relief for Ford Foundation comes even as registration of Setalvad `s Sabrang Trust has been cancelled : her other NGO, Citizens for Justice and peace , put on prior permission : and a CBI probe ordered against her firm SCPPL.
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