The central government has to satisfy itself, before granting the FCRA certificate, that the applicant “is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes”. How the government is supposed to foresee the likelihood of misuse is a mystery.

Similarly, it has to be satisfied that the applicant “has not indulged in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another”. What constitutes an inducement? Would the promise of a good after-life or peace of mind be considered an inducement — most religions offer these. If so, this clause could affect the work of educational institutions run by Christian bodies, which are affiliated to various churches.

The foreign contribution may not be used for “speculative” business. The Bill does not define speculative business. Can the contribution be invested in stock markets? What about government securities? (Government securities carry the market risk of changes in interest rates, and are used by market participants as short-term investments.)

The foreign contribution has to be received through an account in a branch of a bank which has to be specified in the application for FCRA certification. This could pose practical problems. For example, what does one do if a bank closes that particular branch?

The FCRA accounts are subject to special audit requirements. The detailed accounts and the record of utilisation of funds are subject to government audit. The central government has the powers to inspect all accounts, and to seize the accounts. It can also seize any currency or security (shares, bonds, etc) that it believes is being held in contravention of the Act.

... contd.