Good News: ICA AP permitted to open accounts, Resume operations

In a significant relief for ICA Asia Pacific (ICA AP) and the global cooperative movement, including India, the Ministry of Home Affairs (MHA) has permitted the Delhi office of the global co-op body ICA to open new bank accounts and resume activities. This decision circumvents the MHA’s earlier order of non-renewal of ICA AP’s Foreign Contribution Regulation Act (FCRA) license.

ICA AP President Dr. Chandra Pal Singh Yadav shared the update with Indian Cooperative over the phone. Yadav, along with ICA AP Regional Director Balu Iyer, had actively lobbied with the Cooperation Ministry on the matter. During the recent Kribhco AGM at NCUI headquarters, Chandra Pal mentioned to this correspondent that the Cooperation Ministry had earnestly taken up the issue.

Expressing confidence in a favorable outcome, Yadav credited Union Minister Amit Shah, who heads both the MHA and the Cooperation Ministry, for supporting the case. On Thursday, the ICA AP office received a positive response from the MHA.

The MHA’s letter, a copy of which is with Indian Cooperative, titled “Follow-up on Application Revision of Order under Section 32 Regarding Renewal of Registration Certificate under FCRA, 2010,” confirmed the decision. The letter notes that the ICA AP’s revision application, filed on September 4, 2024, is under consideration in accordance with FCRA, 2010.

It further clarifies that since the ICA AP office is a branch of the International Cooperative Alliance in Brussels, Belgium, it is recognized as a foreign entity per FCRA, 2010. ICA AP obtained branch office registration under FEMA, 1999, via an RBI letter dated October 27, 2015. The MHA has no objections to ICA AP’s activities as permitted by this RBI order. Furthermore, it allows ICA AP to operate non-FCRA bank accounts, although FCRA compliance will be required if foreign contributions are received or utilized.

Chandra Pal expressed gratitude towards Secretary Ashish Bhutani and Additional Secretary Pankaj Bansal for their support, noting that their clarification helped MHA officials understand ICA’s role in fostering the cooperative movement worldwide.

This development is timely, as preparations for the upcoming ICA global conference and General Assembly, being hosted in India for the first time, are in their final stages. Without this approval, ICA AP’s Delhi office would have faced significant operational constraints.

The event is scheduled at Bharat Mandapam, with efforts to secure Prime Minister Narendra Modi’s attendance for the inauguration. Cooperative leaders confirm that Amit Shah will attend, and over 1,500 delegates from nearly 100 countries are expected. IFFCO has signed an MoU with ICA and is spearheading preparations along with other Indian ICA members.

It is noteworthy that the MHA previously cited allegations of illegal activities, including forced conversions and anti-CAA funding, while refusing to renew the FCRA licenses of several NGOs. However, ICA’s sole mission is to strengthen the cooperative movement across Asia-Pacific, and it has no involvement in such activities. MHA’s decision followed the clarification of ICA’s role, as stated by a top ICA official on condition of anonymity.

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