FCRA licence revoked for 700 NGOs in Gujarat
In Gujarat, the Foreign Contribution Regulation Act (FCRA) licences of around 700 NGOs have been revoked, restricting their ability to receive and use foreign funding. Gujarat is home to approximately 1,125 organisations registered under FCRA, and the cancellation affects a significant portion of them.
While FCRA regulations are aimed at ensuring accountability and national interest, the revocations underscore the challenges faced by civil society organisations in maintaining uninterrupted social services. The situation reinforces the need for capacity building, awareness of regulatory frameworks, and responsible financial management within the NGO sector.
The FCRA governs how NGOs and associations in India can accept and utilise funds from foreign sources, with licences typically valid for a fixed period and subject to renewal and compliance requirements. NGOs whose licences are revoked or have expired cannot legally receive or spend foreign contributions, and unregulated transactions in FCRA accounts are illegal and subject to penalties.
National figures show that such cancellations are part of a broader trend in India, where tens of thousands of registered NGOs have lost their FCRA registration in recent years—either because they did not apply for renewal or were found in violation of FCRA rules.
The move has significant implications for civil society organisations, particularly smaller ones dependent on foreign grants for programmes in education, health, social welfare, and community development.