New Delhi: The Union Home Ministry has cancelled the registration of Bengaluru-based NGO Infosys Foundation for alleged violation of norms in receiving foreign grants, officials said on Monday.
All non-government organizations are mandatorily required to be registered under the Foreign Contribution (Regulation) Act or FCRA for receiving foreign funding.
The Home Ministry had last year served show cause notice to Infosys Foundation for failing to submit annual income and expenditure statement on foreign funding for up to six years despite repeated reminders, officials said.
The registration was cancelled as Infosys Foundation allegedly did not file income and expenditure statement on foreign funding in the past few years, they said.
Soon after the Union Home Ministry cancelled the registration, NGO Infosys foundation says they have not violated FCRA rules. "Infosys foundation in a statement said " Infosys Foundation would like to clarify that it has not violated any FCRA norms and was de-registered from FCRA following its request to the Ministry. "
The foundation was registered under the FCRA Act in January 2016. In May 2016, the Government amended the FCRA Act in the Finance Bill with retrospective effect from 2010 as a result of which foundation no longer fell under the purview of the FCRA Act. The foundation thereafter applied for its de-registration from FCRA with an additional request to cancel the FCRA registration in June 2016 and received acknowledgement from the FCRA wing in the same month.
The foundation has submitted its annual returns for FY16, FY17 and FY18, though it did not fall under the purview of Act following its amendment. Additionally, the foundation has also submitted the necessary paperwork to the government in July 2018, to showcase that the Foundation has not received any foreign funding.
And they also said that the foundation has not received any notice to file returns pertaining to FCRA after April 2018.
As per FCRA guidelines, registered associations are required to submit electronically an online annual report with scanned copies of income and expenditure statement, receipts and payment account, balance sheet, etc., for every financial year within nine months of the closure of the financial year.
Associations which do not receive foreign contribution during a particular year are also required to furnish a 'NIL' return for that financial year within the aforesaid period, read the guidelines.
When contacted, Infosys Foundation said its de-registration from the FCRA followed a request it proactively made to the Ministry of Home Affairs.
"This was done as the Infosys Foundation does not come under the purview of the FCRA following the amendment made to the act in 2016. We had approached the ministry to consider this, and thank them for granting our request," said Rishi Basu from the foundation's corporate marketing and communications division.
Established in 1996, Infosys Foundation supports projects in education, rural development, health care, arts and culture, and destitute care.
According to the foundation's website, its mission is to work in remote regions of India.
The Union Home Ministry had last year served show-cause notices to at least 1,755 NGOs, including a few companies, for failing to submit annual income and expenditure statement on foreign funding for up to six years despite reminders.
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