India, June 24 -- Higher penalties for NGOs, stricter funding rules and new limits on foreign influence

The Ministry of Home Affairs (MHA) has made rules tougher for NGOs that receive foreign funding. Two new notifications issued on Monday increase penalties for violations of the Foreign Contribution (Regulation) Act, 2010.

The rules now give the Government more control over how foreign funds are received and spent, and reduce flexibility for NGOs. For NGOs, the message is clear: foreign funding now comes with more rules, higher penalties for breaking them, and less flexibility.

The new penalties, announced under Section 41(1) of the Act, are now higher and more clearly defined. If an NGO spends more than 20 per cent of its funds on ad...