FCRA bill improvement on existing law, says government

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…