The primary reason for 16,000 NGO’s worry is the new provision on the asset ownership by these 16,000 NGOs.
The Deemed Cessation Trap
If the NGO’s licence expires, or gets cancelled, or when its surrendered, the Government gains statutory mechanism to take over their assets created by foreign funds. Be it hospitals, schools, equipment or even land, instantly the Government will have an automatic claim.
Designated Authority
The Government will form a powerful authority to manage, sell or transfer these assets to other Governmental departments. In short if loses its licence, it loses its complete infrastructure.
Provisional Vesting
In the event of licence suspension, the assets are provisionally vested in the government, means NGO cannot sell or move the asset without prior approval from the Government.
There are 16,000 registered NGOs who will be affected to the tune of 22,000 crore Rs.
The government has cancelled 21,700 FCRA licences from 2011. The new bill targets the remaining NGOs.
No wonder Congress calls the Bill draconian and oppressive, as it can completely curtail misuse of foreign funding used for anti-national deeds like conversion and Hawala.
Hope the Bill passes in this session only in Parliament.