The Foreign Contribution (Regulation) Act (FCRA) registration of Bengaluru-based NGO Infosys Foundation has been cancelled by the Home Ministry for reportedly violating norms said news agency PTI. However, Infosys Foundation said that it has not violated any FCRA norms and was de-registered from FCRA following its request to the Ministry.
This comes after the Infosys Foundation was one among 1,755 companies given a show-cause notice in November 2018 for not submitting annual income and expenditure statement on foreign funding for up to six years in spite of repeated reminders. The Home Ministry asked the NGOs to submit their income and expenditure statement, receipts and payment account, balance sheet for up to six consecutive financial years, from 2011-12 to 2016-17.
As per the FCRA Act 2010, all NGOs are required to be registered under the Act to receive foreign funding, and also have to furnish the same. According to terms stipulated in the FCRA, an organisation cannot receive foreign funding unless it is registered under the 2010 Act, except when it gets government approval for a specific project.
One of the main requirements under the FCRA is that organisations have to submit their annual return to the government within nine months from the closure of the previous financial year.
Meanwhile, Infosys Foundation responded by stating that it does not come under the purview of FCRA.
"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 necessary paperwork to the Government in July 2018, to showcase that the Foundation has not received any foreign funding.
The Foundation has not received any notice to file returns pertaining to FCRA after April 2018."
The Infosys Foundation was established in 1996. According to their website, the Foundation supports projects in education, rural development, healthcare, arts, culture and destitute care. It is chaired by Sudha Murthy, the wife of Infosys founder Narayana Murthy.