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LATEST NEWS UPDATES | FCRA rules hit overseas COVID aid to hospitals, NGOs -Vikas Dhoot

FCRA rules hit overseas COVID aid to hospitals, NGOs -Vikas Dhoot

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published Published on May 8, 2021   modified Modified on May 9, 2021

-The Hindu

FCRA approvals take a lot of time, the government needs to urgently grant an exemption for all such donations, tax and legal experts said.

Indian entities, including hospitals and charitable trusts, hoping to receive COVID-19 relief material from overseas individual donors or donor agencies, could be in trouble, unless they are registered under the Foreign Contribution Regulation Act (FCRA) with a stated objective involving provision of medical care.

On May 3, the government permitted imports without GST levies for pandemic relief material donated from abroad for free distribution in the country, delegating States to certify the entities that will receive such imports. However, no exemption has been granted from the FCRA law that requires any domestic entity receiving foreign material or cash donations to have requisite approvals from the Ministry of Home Affairs.

Sources said this ambiguity and the prospect of facing prosecution under the FCRA Act’s strict provisions is jeopardising some large donors’ plans to buy equipment like oxygen plants and concentrators for Indian hospitals and smaller charities, and informal groups of persons working in rural areas with weaker health infrastructure.

In the case of a large hospital, where nearly two dozen patients died after oxygen supplies were not replenished in a timely manner, foreign donors are keen to donate an oxygen production plant on its premises, but the lack of an FCRA nod is holding up the process. As FCRA approvals take a lot of time, the government needs to urgently grant an exemption for all such donations, tax and legal experts told The Hindu.  

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The Hindu, 8 May, 2021, https://www.thehindu.com/news/national/worry-over-fcra-registration-for-receiving-pandemic-aid/article34516612.ece?homepage=true


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