Pinarayi Vijayan’s Claims Will Not Stand; Centre’s permission compulsory to sign contract with foreign agencies

The central government guidelines have contradicted Pinarayi Vijayan’s claim that Centre’s approval was not required to sign a contract with UAE Red Crescent in connection with the Life Mission project.

It is mentioned in the 2015-central government guideline that those who accept foreign funding for projects should take prior permission by informing the centre of its details.

The guideline released on December 7, 2015 makes it clear that if the Union Finance Ministry gives permission, the foreign organisation should deposit the money directly into the account of the organisation accepting the money.

Only those organisations registered as per the Foreign Contribution (Regulation) Act can accept foreign financial aid. Otherwise, the foreign organisation should seek the Centre’s permission by submitting the proposal through the organisation accepting the funds. This will not be valid if the foreign organisation submits the proposal directly.

These regulations have been violated in the Vadakkanchery Life Mission apartment deal. UAE Red Crescent does not have the approval of the central government to function in India. Hence, the Life Mission project should have sought Centre’s permission.

Moreover, the funds have been accepted by a government organisation, which increases the gravity of the issue. UAE Red Crescent handing over the money to the UAE consulate is also in violation of the guidelines.