The HRD ministry, on Friday, said that institutions created through an Act of Parliament do not need an FCRA licence to receive foreign funds.
The Home Ministry has cancelled the FCRA licences of several hundred organisations, including DU, JNU and IIT Delhi, for failing to file annual returns for five consecutive years.
"Institutions created through an Act of Parliament are exempted from filing returns as they are covered under the annual government audit," a senior HRD Ministry official said.
Citing Section 50 of the Foreign Contribution Regulation Act (FCRA) 2010, the official said the statutory bodies created though central or state Acts are exempted from the FCRA.
They are required to have their accounts compulsorily audited by the Comptroller and Auditor General of India, he added.
"IIT-Delhi was filing returns even after the completion of audit," he said.
IIT-Delhi had yesterday claimed that there were “procedural lapses” in the cancellation of its licence.
The other institutions whose FCRA licences have been cancelled include, IGNOU, Panjab University, Indian Council Of Agricultural Research, Gargi College and Lady Irwin College. Doon School Old Boys Association, Sri Guru Tegh Bahadur Khalsa College, Dr. Zakir Hussain Memorial Trust, Dr Ram Monohar Lohia International Trust, Co-ordinating Voluntary Adoption Resource Agency have also been barred from receiving donations from abroad and their FCRA registrations cancelled.
The HRD official said there was no information or notice about "non-filing of returns or any other compliance pending". The organisations whose FCRA licences have been cancelled are mostly societies, NGOs and trusts, he said.
According to norms, no organisation is allowed to receive funds from abroad unless it is registered under the FCRA. It is mandatory under the law for such organisations to submit income and expenditure statement to the government annually else their registration is cancelled.
(With inputs from PTI)
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