Maharashtra CMRF Gets FCRA Nod for Foreign Funds

For the first time, a state government relief fund has been authorised to receive foreign donations under the Foreign Contribution (Regulation) Act (FCRA), 2010, following the approval of the Maharashtra Chief Minister’s Relief Fund (CMRF) by the Union Ministry of Home Affairs.

This clearance allows the CMRF to legally accept financial contributions from abroad to support social initiatives, including aid for individuals affected by natural disasters, major accidents, communal disturbances, terrorist attacks, and those requiring financial assistance for education and healthcare. 

Traditionally, such state-managed relief funds have operated solely through domestic contributions.

The CMRF, registered as a Trust under the Bombay Public Trusts Act, 1950, functions under the administration of the Government of Maharashtra. The Chief Minister of the State serves as the chairperson, exercising full authority and oversight over the fund’s operations. As outlined in a public tender issued in February, the fund processes between one lakh and 1.5 lakh transactions each year.

According to media reports, the CMRF, based at Mantralaya, Nariman Point, Mumbai, 400032, was granted FCRA registration after meeting all the stipulated requirements. The fund’s website states its primary objective is to provide immediate support to distressed individuals both within Maharashtra and across India. 

It offers financial relief in the aftermath of natural calamities such as floods, droughts, and fires, and assists economically disadvantaged patients facing serious health conditions.

Under Indian law, any entity—be it an association, trust, or non-governmental organisation—seeking to receive contributions from foreign sources must obtain registration under the FCRA. The legislation, first introduced in 1976, was replaced by a revised Act in 2010 and further updated in 2020. It governs the receipt and use of foreign funds for purposes that are social, educational, religious, economic, or cultural in nature.

Once registration is granted, all foreign remittances must be directed into a dedicated “FCRA Account” established at the State Bank of India’s Parliament Street branch in New Delhi. Recipients are also required to submit detailed annual returns and disclose all assets—both movable and immovable—acquired using foreign funds.

The Ministry of Home Affairs monitors foreign donations under the FCRA to safeguard national security interests. This year alone, 244 NGOs and associations have been approved for registration, including the Ramakrishna Mission in Kolkata, the Ramakrishna Mission Hospital in Itanagar, and seven Buddhist organisations. As of Friday, India had a total of 16,141 FCRA-registered NGOs.

In contrast, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES), established in March 2020 to manage crises such as the COVID-19 pandemic, was not subject to the FCRA and was provided with a separate mechanism to receive foreign donations.

In 2018, India notably declined offers of international assistance following devastating floods in Kerala, maintaining its policy of self-reliant disaster response. The Maharashtra CMRF's FCRA licence marks a shift in this approach, enabling a state-level relief fund to tap into foreign aid for the first time.

 

(With inputs from agencies)