The Foreign Contribution Regulation (Amendment) Act, 2020: Balancing Transparency And Accountability
- IJLLR Journal
- May 4
- 1 min read
Sagar Singh, Law College Dehradun, Uttaranchal University
ABSTRACT
The Foreign Contribution Regulation Act (FCRA) was enacted to regulate the acceptance and use of foreign donations in India, to protect national security, promote transparency, and hold individuals accountable. The Foreign Contribution (Regulation) Amendment Act, 2020, was passed because some non-governmental organizations were believed to be misusing foreign funds. The Amendment made major changes, including making it illegal to move foreign contributions, lowering restrictions on administrative costs, requiring important officials to have Aadhaar identification, and giving the government greater ability to suspend and cancel. This research study looks at whether the 2020 Amendment strikes a good balance between civil society organizations’ freedom and accountability, and openness on the other side. The research employs a doctrinal and analytical technique, utilizing statutes, judicial rulings, governmental records, and academic literature. It looks at what the changes mean for the Constitution, especially in terms of Article 19(1)(c) of the Constitution of India, which guarantees the right to free association. The paper states that the Amendment's goal is to improve regulatory monitoring and stop the misuse of foreign contributions. However, some parts of the Amendment may make it too hard for real non- governmental organizations to do their jobs. The study finds that a balanced regulatory approach, with procedural safeguards and proportionality, is necessary to ensure that openness does not undermine democratic participation or the growth of civil society.
