Foreign Contribution Bill introduced in RS

Organisations of political nature, not political parties, may be barred from getting foreign funds under the new bill.

Organisations of political nature, not being political parties, may be barred from receiving foreign funds under a new bill under whose purview the government proposes to bring associations engaged in production or broadcast of news or current affairs.

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The Foreign Contribution (Regulation) Bill 2006, introduced by Minister of State for Home S Reghupathy in the Rajya Sabha on Monday, aims at replacing the Foreign Contribution (Regulation) Act 1976 which was amended in 1984.

According to the statement of objects and reasons, the new bill seeks to bring associations engaged in production or broadcast of audio news or audio visual news or current affairs through any electronic mode under its purview.

Besides prohibiting use of foreign contribution for any speculative business, the bill puts a cap on administrative expenses at 50 per cent of the receipt of foreign contribution.

The bill seeks to consolidate the law to regulate acceptance and utilisation of foreign contribution or foreign hospitality and prohibit the same for any activities detrimental to the national interests.

However, it would exclude foreign funds received from relatives living abroad.

It provides for strengthening of monitoring mechanism for foreign remittances and makes provision for compounding of certain offences.

It provides for registration to be valid for five years with a provision for renewal.

Large-scale changes in the existing Act were necessitated by significant development in the internal security scenario and growing influence of voluntary organisations besides spread of information and communication technology, the bill said.