The Ministry of Home Affairs (MHA) said on Monday (April 7, 2025) that foreign funds obtained through the prior permission route would be valid only for four years, unlike the earlier policy where the spending window remained open and valid till the entire fund was utilised.
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The Ministry of Home Affairs (MHA) said on Monday (April 7, 2025) that foreign funds obtained through the prior permission route would be valid only for four years, unlike the earlier policy where the spending window remained open and valid till the entire fund was utilised. The Ministry said not adhering to the time limit would be a violation of the Foreign Contribution (Regulation) Act, 2010 and necessary punitive actions could be taken.
Under the Foreign Contribution (Regulation) Act, 2010, a non-government organisation (NGO) or an individual may receive foreign funds either through registration or prior permission.
In a communication to all banks on Monday, the MHA said that for a prior permission application, “the validity period for receiving foreign contribution shall be three years from the date of approval of the application” and the period for “utilising the foreign contribution shall be four years from the date of approval.”
“Further, in respect of prior permission applications which have already been approved and where the remaining period of the approved project/ activity in the prior permission is more than three years, the above time limit shall be reckoned from the date of issue of this order instead of the date of approval of the application,” the MHA said.
If an organisation in formative stage is not eligible for FCRA registration, it may apply for grant of prior permission for a specific amount from a particular donor for carrying out specific activities or projects. For this, the NGO should be registered under an existing statute such as the Societies Registration Act, 1860, the Indian Trusts Act, 1882 or Section 25 of the Companies Act, 1956 etc;
In 2025, 20 NGOs received foreign donations through prior permission, while in 2024, as many as 58 applications were processed.
The MHA said that it might allow for extension of validity period for an NGO or association “case to case,” based on merits of the case.
Published – April 07, 2025 11:31 pm IST