NEW DELHI: The vesting of assets is the single-most contentious provision in the Foreign Contribution (Regulation) Amendment Bill but the law ministry on Tuesday said the proposal was, in fact, an improvement upon the existing law as its structured framework enhanced legal certainty, administrative efficiency and accountability in managing foreign-funded assets.The current law provides for vesting of assets but does not specify the nature, duration and finality of such vesting, the ministry told a joint committee of Parliament, which is examining the bill, adding that it led to an open-ended custodial arrangement and administrative difficulties in managing assets, sources said.The ministry was represented by legislative secretary Rajiv Mani at the meeting where State Bank of India, the only bank designated to receive foreign contributions at its New Delhi main branch, supported the bill’s objectives but made a host of suggestions, flagged concerns and sought more clarity, including on how to handle an organisation’s accounts and deposits when its permission to receive foreign donations ends.MPs from opposition parties and BJP clashed over provisions of the bill with two DMK MPs, A Raja and P Wilson, dubbing the bill violative of Article 300(A), which says no one will be deprived of their property save by the authority of law.They argued that the Supreme Court has in its rulings explained the ground on which the govt can seize properties and the FCRA bill was violative of this. BJP MP Nishikant Dubey said laws overseeing trusts and societies had similar provisions for seizure of assets.Turning to alleged misuse of foreign money for conversion, he said this allowed a person converted to a minority religion to enjoy twin quota benefits in some cases, which violated the right to equality. A team of senior SBI officials led by its chairperson C S Setty said while the bill provided for govt control of foreign contributions and assets in such cases, it left the detailed banking procedure to be prescribed in rules, sources said.
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SBI officers flagged a potential gap between the date when a registration ceased and the date the bank was informed. There is no express protection for banks acting in good faith on the instructions of the designated authority or the home ministry, they said.The bank said it supported a clear legal framework for managing foreign contributions when an organisation’s registration ended. It called for detailed rules, common procedures for banks and prompt updates on registration status before the new provisions take effect.
