New Delhi: The Centre has approved the Maharashtra government’s request to receive foreign donations for the Chief Minister’s Relief Fund (CMRF), signalling a notable policy shift under the Foreign Contribution Regulation Act (FCRA).

The move stands in sharp contrast to the Centre’s stance in 2018 when it denied a similar request from the Kerala government to accept foreign aid following the catastrophic floods in the state.

An FCRA licence is a permit issued by the Ministry of Home Affairs that allows registered organisations to accept foreign funds for specific purposes.

These licences are crucial for the NGOs, trusts and other entities seeking to receive foreign funding for social, cultural, religious or educational activities.

Every person who has been granted a certificate or given prior permission under Section 12 shall receive foreign contributions only in an account designated as "FCRA Account", which shall be opened for the purpose of remittances of foreign contributions in the State Bank of India's Parliament Street branch in New Delhi.

The Union Home Ministry has registered the fund under FCRA, allowing it to accept overseas contributions to support people affected by natural disasters, major accidents, communal violence, or terrorist attacks, as well as those in need of medical or educational assistance.

Earlier, state disaster relief funds operated using domestic donations. Under the FCRA, foreign contributions require specific registration.

Following the devastating floods in Kerala in 218, the UAE had pledged ₹700 crore for Kerala’s reconstruction efforts, but the Centre did not permit the state to receive the assistance. Similar offers from Qatar, the Maldives, and Thailand were also declined. Over 200 people died in the floods, and damages were estimated to exceed ₹20,000 crore. The Centre neither declared it a national disaster nor allowed foreign visits by Kerala ministers to seek aid. Kerala had to battle for nearly a year with the GST Council to levy a flood cess to raise funds.

In contrast, the PM CARES Fund, set up in March 2020 during the COVID-19 crisis, was exempted from FCRA norms and allowed to accept foreign donations through a specially designated account.

The Home Ministry maintains that the FCRA is crucial to ensuring foreign funds do not compromise national security. The Act was revised in 2010 and amended in 2020.

Reacting to the Maharashtra development, Kerala Finance Minister K.N. Balagopal said, “When Kerala sought similar support during a critical moment, the Centre handled it with political discrimination. Now that Maharashtra has received approval, we hope the Centre will act without bias in the future during such emergencies.”