FREQUENTLY ASKED
QUESTIONS (FAQs) FOR NPOs
ON
FCRA LAWs
Committee for Cooperatives & NPO Sectors
The Institute of Chartered Accountants of India
FREQUENTLY ASKED
QUESTIONS (FAQs) FOR NPOs
ON
FCRA LAWs
Committee for Cooperatives & NPO Sectors
The Institute of Chartered Accountants of India
Preface
C ontents in detail
CHAPTER 1 FREQUENTLY ASKED 1
QUESTIONS (FAQs) ON FCRA
CHAPTER 2 CLARIFICATORY FAQs 31
CHAPTER 3 OTHER IMPORTANT FAQs 37
- FOREIGN CONTRIBUTION
(REGULATION) ACT, 2010 47
- FOREIGN CONTRIBUTION
(REGULATION) RULES, 2011 77
- NOTIFICATION REGARDING THE EFFECTIVE 88
DATE OF APPLICABILITY OF FCRA 2010
- FOREIGN CONTRIBUTION (REGULATION) 89
AMENDMENT RULES, 2012
- FORM FC-1 91
- FORM FC-2 92
- FORM FC-3 94
- FORM FC-4 100
- FORM FC-5 106
- FORM FC-6 105
- FORM FC-7 112
- FORM FC-8 114
- FORM FC-9 117
- FORM FC-10 119
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CHAPTER 1
MHA-FREQUENTLY ASKED
QUESTIONS (FAQs) ON FCRA*
Introduction : In this chapter 68 FAQs as provided by the FCRA
department have been reproduced. In some FAQs there is need
for additional clarity and in some FAQs there is statutory
inconsistency which has been discussed in the next chapter with
suitable referrence under such FAQ.
Q.1 What is foreign contribution?
Ans. As defined in Section 2(1)(h) of FCRA, 2010, "foreign contribution"
means the donation, delivery or transfer made by any foreign source,--
(i) of any article, not being an article given to a person** as a gift
for his personal use, if the market value, in India, of such article,
on the date of such gift is not more than such sum*** as may be
specified from time to time by the Central Government by rules
made by it in this behalf;
(ii) of any currency, whether Indian or foreign;
(iii) of any security as defined in clause (h) of section 2 of the
securities Contracts(Regulation) Act, 1956 and includes any
foreign security as defined in clause (o) of Section 2 of the Foreign
Exchange Management Act, 1999.
Explanation 1--A donation, delivery or transfer or any article,
currency or foreign security referred to in this clause by any person
who has received it form any foreign source, either directly or through
* Source : http://mha.nic.in/fcra.htm.
** In terms of FCRA, 2010 "person" includes (i) an individual; (ii) a Hindu undivided family; (iii) an
association; and (iv) a company registered under section 25 of the Companies Act, 1956.
*** The sum, as stated at (i) above, has been specified as ` 25,000/- vide the Foreign Contribution
(Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].
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one or more persons, shall also be deemed to be foreign contribution
with the meaning of this clause.
Explanation 2--The interest accrued on the foreign contribution
deposited in any bank referred to in sub-section (1) of Section 17 or
any other income derived from the foreign contribution or interest
thereon shall also be deemed to be foreign contribution within the
meaning of this clause.
Explanation 3--Any amount received, by an person from any foreign
source in India, by way of fee (including fees charged by an
educational institution in India from foreign student) or towards cost
in lieu of goods or services rendered by such person in the ordinary
course of his business, trade or commerce whether within India or
outside India or any contribution received from an agent or a foreign
source towards such fee or cost shall be excluded from the definition
of foreign contribution within the meaning of this clause.
Q.2 Whether earnings from foreign client(s) by a person in lieu of goods
sold or services rendered by it is treated as foreign contribution?
Ans. No. As clarified at Explanation 3 above, foreign contribution excludes
earnings from foreign client(s) by a person in lieu of goods sold or services
rendered by it as this is a transaction of commercial nature.
Q.3 Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign
contribution as the donation, delivery or transfer made by any foreign source
of any article, not given to a person as a gift for personal use, if the market
value, in India, of such article exceeds one thousand rupees. What limit
has been prescribed in FCRA, 2010 in respect of such articles?
Ans. The limit has been specified as Rs. 25000/- through insertion of the
following Rule 6A in FCRR, 2011 vide the Foreign Contribution (Regulation)
Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]:
"6A. When articles gifted for personal use do not amount to foreign
contribution.--Any article gifted to a person for his personal use whose
market value in India on the date of such gift does not exceed rupees
twenty-five thousand shall not be a foreign contribution within the
meaning of sub-clause (i) of clause (h) of sub-section (1) of section (2)."
(Regarding personal receipt and gifts kindly also see FAQ no. 1 of
Chapter 2 for the legal & statutory issues related with this query.)
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Q.4 What is a foreign source?
Ans. Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-
(i) the Government of any foreign country or territory and any
agency of such Government;
(ii) any international agency, not being the United Nations or any of
its specialized agencies, the World Bank, International Monetary
Fund or such other agency as the Central Government may, by
notification, specify in this behalf;
(iii) a foreign company;
(iv) a corporation, not being a foreign company, incorporated in a
foreign country or territory;
(v) a multi-national corporation referred to in sub-clause (iv) of
clause (g);
(vi) a company within the meaning of the Companies Act, 1956, and
more than one-half of the nominal value of its share capital is
held, either singly or in the aggregate, by one or more of the
following, namely:-
(A) the Government of a foreign country or territory;
(B) the citizens of a foreign country or territory;
(C) corporations incorporated in a foreign country or territory;
(D) trusts, societies or other associations of individuals (whether
incorporated or not), formed or registered in a foreign
country or territory;
(E) Foreign company;
(vii) a trade union in any foreign country or territory, whether or not
registered in such foreign country or territory;
(viii) a foreign trust or a foreign foundation, by whatever name called,
or such trust or foundation mainly financed by a foreign country
or territory;
(ix) a society, club or other association or individuals formed or
registered outside India;
(x) a citizen of a foreign country;"
List of agencies of the United Nations, World Bank and some other
International agencies/multilateral organisations, which are not treated
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as `foreign source', are available on the website http://mha.nic.in/fcra/
intro/FCRA-exemptedAgenciesUN.pdf
Q.5 Who can receive foreign contribution?
Ans. A `person', as defined in Section 2(1)(m) with the exclusion of those
mentioned in Section 3 of FCRA, 2010, having a definite cultural, economic,
educational, religious or social programme can receive foreign contribution
after it obtains the prior permission of the Central Government, or gets
itself registered with the Central Government. Illustrative but not exhaustive
lists of activities which are permissible and may be carried out by
associations of different nature are available on the website --http://
mha.nic.in/fcra/intro/permitted_programs.htm.
Q.6 Who cannot receive foreign contribution?
Ans. As defined in Section 3(1) of FCRA, 2010, foreign contribution cannot
be accepted by any:
(a) a candidate for election;
(b) correspondent, columnist, cartoonist, editor, owner, printer or
publisher of a registered newspaper;
(c) Judge, government servant or employee of any Corporation or
any other body controlled on owned by the Government;
(d) member of any legislature;
(e) political party or office bearer thereof;
(f) organization of a political nature as may be specified under sub-
section (1) of Section 5 by the Central Government.
(g) association or company engaged in the production or broadcast
of audio news or audio visual news or current affairs
programmes through any electronic mode, or any other
electronic form as defined in clause (r) of sub-section (i) of
Section 2 of the Information Technology Act, 2000 or any other
mode of mass communication;
(h) correspondent or columnist, cartoonist, editor, owner of the
association or company referred to in clause (g).
ExplanationIn clause (c) and section 6, the expression "corporation'
means a corporation owned or controlled by the Government and
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includes a Government company as defined in section 617 of the
Companies Act, 1956.
(i) individuals or associations who have been prohibited from
receiving foreign contribution.
Q.7 Are there any banned organisations from whom foreign contribution
should not be accepted?
Ans. Yes. FCRA is meant to ensure that foreign contribution is received
from legitimate sources and utilised for legitimate purposes by any person.
A list of banned organisations is available in MHA's website http://
mha.nic.in/uniquepage.asp?Id_Pk=292. In particular, the list of foreign
entities/individuals can be seen in http://www.un.org/sc/committees/
1267/AQList.htm
Q.8 Whether donation given by Non-Resident Indians (NRIs) is treated
as `foreign contribution'?
Ans. Contributions made by a citizen of India living in another country
(i.e., Non-Resident Indian), from his personal savings, through the normal
banking channels, is not treated as foreign contribution. However, while
accepting any donations from such NRI, it is advisable to obtain his passport
details to ascertain that he/she is an Indian passport holder.
Q.9 Whether donation given by an individual of Indian origin and having
foreign nationality is treated as `foreign contribution'?
Ans. Yes. Donation from an Indian who has acquired foreign citizenship is
treated as foreign contribution. This will also apply to PIO card holders
and to Overseas Citizens of India. However, this will not apply to `Non-
resident Indians', who still hold Indian citizenship.
Q.10 Whether foreign remittances received from a relative are to be treated
as foreign contribution as per FCRA, 2010?
Ans. The position in this regard as given in Section 4(e) of FCRA, 2010 and
Rule 6 of FCRR, 2011 are as under:
Subject to the provisions of section 10 of the FCRA, 2010, nothing contained
in section 3 of the Act shall apply to the acceptance, by any person specified
in that section, of any foreign contribution where such contribution is
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accepted by him from his relative. However, in terms of Rule 6 of FCRR,
2011, any person receiving foreign contribution in excess of one lakh rupees
or equivalent thereto in a financial year from any of his relatives shall
inform the Central Government in Form FC-1 within thirty days from the
date of receipt of such contribution. This form is available on the website
http://mha.nic.in/fcra/forms/fc-1.pdf.
(Kindly also see FAQ no. 2 of Chapter 2 for the legal and statutory
issues related with this query.)
Q.11 Whether individuals not covered under section 3 or a HUF can accept
foreign contribution freely for the purposes listed in section 4 of FCRA,
2010?
Ans. Yes. Since, subject to the provisions of section 10, even the persons
specified under section 3, i.e., persons not permitted to accept foreign
contribution, are allowed to receive foreign contribution for the purposes
listed in section 4, it is obvious that Individuals in general and a HUF are
permitted to accept foreign contribution without permission for the
purposes listed in section 4. However, it should be borne in mind that the
monetary limit for acceptance of foreign contribution in the form of any
article given as gift to a person for his personal use has been specified as
Rs. 25,000/ vide FCR Amendment Rules, 2012.
Q.12 Can the fee paid by the foreign delegates/participants attending/
participating in a conference/seminar etc. be termed as foreign contribution
and thus require permission from FCRA?
Ans. "Delegate/participation Fees" paid in foreign currency by foreign
delegates/participants for participation in a conference/seminar and which
is utilized for the purpose of meeting the expenditure of hosting the
conference/seminar is not treated as foreign contribution and as such no
permission under FCRA is required.
Q.13 Whether a Company incorporated in India under the Companies Act,
1956 having its operations in 2 or more countries is to be treated as a
MNC/foreign source under FCRA, 2010?
Ans. No. However, as defined under section 2(j)(vi), a company within the
meaning of the Companies Act, 1956 having more than one-half of the
nominal value of its share capital held, either singly or in the aggregate, by
one or more of the following will be treated as a "foreign source":
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(A) the Government of a foreign country or territory;
(B) the citizens of a foreign country or territory;
(C) corporations incorporated in a foreign country or territory;
(D) trusts, societies or other associations of individuals (whether
incorporated or not), formed or registered in a foreign country
or territory"
Q.14 Can foreign contribution be received in rupees?
Ans. Yes. Any amount received from `foreign source' in rupees or foreign
currency is construed as `foreign contribution' under law. Such transactions
even in rupees term are considered foreign contribution.
Q.15 Will interest or any other income earned from foreign contribution
be considered foreign contribution?
Ans. Yes.
Q.16 Whether interest or any other income earned out of foreign
contributions be shown as fresh foreign contribution receipt during that
year or not?
Ans. Yes. The interest or any other income earned out of such deposit
should be shown as second/subsequent foreign contribution receipt in the
annual return during the year in which it is earned.
Q17 Can NGOs use the foreign contributions for investment in Mutual
Funds and other speculative investments?
Ans. No. Speculative activities have been defined in Rule 4 of FCRR2011
as under:-
(1) (a) any activity or investment that has an element of risk of
appreciation or depreciation of the original investment,
linked to marked forces, including investment in mutual
funds or in shares;
(b) participation in any scheme that promises high returns like
investment in chits or land or similar assets not directly
linked to the declared aims & objectives of the organization
or association.
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(2) A debt-based secure investment shall not be treated as
speculative investment.
(3) Every association shall maintain a separate register of
investments.
(4) Every register of investments maintained under sub-rule (3) shall
be submitted for audit.
In view of the above, secure investments and fixed deposits in any bank or
Government approved financial institution which ensures a fixed return
will not be treated as speculative investment.
Q.18 Can capital assets purchased with the help of foreign contributions
be acquired in the name of the office bearers of the association?
Ans. No. Every asset purchased with foreign contribution should be
acquired and possessed in the name of the association since an association
has a separate legal entity distinct from its members.
Q.19 Can an association invest the foreign contribution received by it in
profitable ventures and proceeds can be utilized for welfare activities?
Ans. No. The association should utilize such funds for the welfare purpose
or activities for which it is received. The utilization should be in line with
the objectives of the association. However, foreign contributions can be
utilized for self-sustaining activities, not meant for commercial purposes.
Q.20 Can foreign contribution be received in and utilised from multiple
Bank Accounts?
Ans. No fund other than foreign contribution can be deposited in the
exclusive single FC account of a Bank, as mentioned in the order for
registration or prior permission granted by MHA, to be separately
maintained by the associations. However, one or more accounts in one or
more banks may be opened for utilising the foreign contribution after it
has been received provided that no funds other than that foreign
contribution shall be received or deposited in such account or accounts
and in all such cases, intimation on plain paper shall have to be furnished
to MHA within 15 days of the opening of the account.
Q.21 Whether inter-account funds transfer shall be allowed within the
multiple accounts that an Association is now permitted to open for the
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purpose of utilizing the foreign contributions and the level of diligence
required on the part of the Banks in this regard?
Ans. Transfer of funds is allowed from the designated FC account of an
Association to the multiple account or accounts opened for its utilization.
However, no funds other than the amount received in the designated FC
account shall be received or deposited in such multiple account or accounts.
Inter-account transfer of funds between the multiple accounts is not
permissible. As such, the banks should apply full diligence to keep track of
the transfers.
Q.22 Can foreign contribution be mixed with local receipts?
Ans. No. Foreign contribution cannot be deposited or utilised from the
bank account being used for domestic funds.
Q.23 Whether expenses like `interest paid to bank', `bank charges',
`hospitality' etc. can be included in `administrative expenses'?
Ans. No. The definition of as `administrative expenses', as given in Rule 5
of FCRR, 2011 is explicit in this regard.
Q.24 Is there any restriction on transfer of funds to other organisations?
Ans. Yes. Section 7 of FCRA, 2010 states:-
"No person who
(a) is registered and granted a certificate or has obtained prior
permission under this Act; and
(b) receives any foreign contribution,
shall transfer such foreign contribution to any other person unless
such other person is also registered and had been granted the certificate
or obtained the prior permission under this Act:
Provided that such person may transfer, with the prior approval of
the Central Government, a part of such foreign contribution to any other
person who has not been granted a certificate or obtained permission under
this Act in accordance with the rules made by the Central Government."
Rule 24 of FCRR, 2011, as amended vide the Foreign Contribution
(Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012]
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prescribes the procedure for transferring foreign contribution as under:
"24. Procedure for transferring foreign contribution to any
unregistered person. --
(1) A person who has been granted a certificate of registration or
prior permission under section 11 and intends to transfer part
of the foreign contribution received by him to a person who has
not been granted a certificate of registration or prior permission
under the Act, may transfer such foreign contribution to an
extent not exceeding ten per cent of the total value thereof and
for this purpose, make an application to the Central Government
in Form FC-10. http://mha.nic.in/fcra/forms/fc-10.pdf
(2) Every application made under sub-rule (1) shall be accompanied
by a declaration to the effect that-
(a) the amount proposed to be transferred during the financial
year is less than ten per cent of the total value of the foreign
contribution received by him during the financial year;
(b) the transferor shall not transfer any amount of foreign
contribution until the Central Government approves such
transfer.
(3) A person who has been granted a certificate of registration or
prior permission under section 11 shall not be required to seek
the prior approval of the Central Government for transferring
the foreign contribution received by him to another person who
has been granted a certificate of registration or prior permission
under the Act provided that the recipient has not been proceeded
against under any of the provisions of the Act.
(4) Both the transferor and the recipient shall be responsible for
ensuring proper utilisation of the foreign contribution so
transferred and such transfer of foreign contribution shall be
reflected in the returns in Form FC-6 to be submitted by both
the transferor and the recipient.". http://mha.nic.in/fcra/forms/
fc-6.pdf
Q.25 How would an organisation that is registered or has obtained prior
permission under FCRA and intends to transfer a part of the foreign
contribution received by it to another organisation would know whether
the recipient organisation has been proceeded against under FCRA?
Ans. Where any organisation is proceeded against under FCRA, it is done
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with due intimation to the organisation concerned. Therefore, the donor
organisation is advised to insist on a written undertaking from the intending
recipient organisation.
Q.26 What are the eligibility criteria for grant of registration?
Ans. For grant of registration under FCRA, 2010, the association should:
(i) be registered under the Societies Registration Act, 1860 or the
Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956
etc;
(ii) normally be in existence for at least three years and has
undertaken reasonable activity in its chosen field for the benefit
of the society for which the foreign contribution is proposed to
be utilised. For this purpose, the association should have spent
at least Rs.10,00,000/- over the last three years on its activities,
excluding administrative expenditure. Statements of Income &
Expenditure, duly audited by Chartered Accountant, for last
three years are to be submitted to substantiate that it meets the
financial parameter.
Q.27 What are the eligibility criteria for grant of prior permission?
Ans. An organisation in formative stage is not eligible for registration. Such
organisation may apply for grant of prior permission under FCRA, 2010.
Prior permission is granted for receipt of a specific amount from a specific
donor for carrying out specific activities/projects. For this purpose, the
association should:
(i) be registered under the Societies Registration Act, 1860 or the
Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956
etc;
(ii) submit a specific commitment letter from the donor indicating
the amount of foreign contribution and the purpose for which it
is proposed to be given; and
(iii) submit copy of a reasonable project for the benefit of the society
for which the foreign contribution is proposed to be utilised.
Q.28 Whether the amount of foreign contribution for which prior
permission has been granted can be received by an association in
installments ?
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Ans. There is no bar on receiving such foreign contribution in installments.
However, the aggregate amount should not exceed the specified amount
for which prior permission has been granted. The association shall have to
submit the mandatory return in FC-6 form for receipt and utilisation of
the foreign contribution on a yearly basis, till the amount of foreign
contribution is fully utilised. Even if no transaction takes place during a
year, a NIL return should be submitted.
Q.29 Whether an association should open an exclusive FC A/c before
submission of an application for registration or prior permission?
Ans. Yes. Since the FC A/c through which foreign contribution is proposed
to be received and utilised is to be mentioned in the application seeking
registration or prior permission, as the case may be, the association should
open such an exclusive FC A/c with a Bank. This A/c number would be
mentioned in the letter granting registration or prior permission to the
association.
Q.30 Whether Banks should allow an association which is applying for
registration or prior permission under FCRA, 2010 to open an exclusive
FC A/c with INR?
Ans. Yes. However, the Banks should not allow any foreign inward
remittance in that A/c till such time the association is granted registration
or prior permission, as the case may be.
Q.31 Whether Banks should credit any foreign contribution received by
an association to its account even if the association does not have
registration/prior permission from MHA and subsequent reporting can be
made by Banks to MHA?
Ans. Rule 16 (1) of FCRR, 2011 states that every bank shall send a report
to the Central Government within 30 days of receipt of foreign contribution
by any person who is required to obtain a certificate of registration or
prior permission under the Act, but who was not granted such certificate
or prior permission on the date of receipt of such remittance. Further,
Rule 16(3) prescribes that the banks shall send a report to the Central
Government within 30 days from the date of such last transaction in respect
of receipt of any foreign contribution in excess of Rs.1 Crore or equivalent
thereto in a single transaction or in transactions within a duration of 30
days, by any person whether registered or not under the Act.
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In view of the above, it follows that bank may credit any foreign
contribution received by an Association without registration or prior
permission. However, while the banks can prevent such a situation in cases
where a cheque is presented by the recipient of foreign contribution for
deposit in its savings/current account, it may not always be possible when
the foreign remittance is through wire transfer. Therefore, in all such cases,
besides sending a report to MHA as per Rule, the bank should not allow
any withdrawal or transfer or utilisation of the FC amount till such time
the Association produces documentary evidence from MHA permitting it
to do so.
Q.32 Should the Banks report transactions pertaining to foreign
contributions which are returned back to the remitter by the beneficiary
Association for want of registration/prior permission from MHA?
Ans. It is not necessary for the bank to report such foreign contribution
that is returned to the donor without crediting in the account of the
recipient.
Q.33 Whether reporting by Banks is also applicable for transfer of funds
between FCRA accounts of two or more associations?
Ans. Yes. Reporting by Banks is also applicable to transfer of funds from
one FCRA registered Association to another.
Q.34 Whether the reference period prescribed in Rule 16(3) of FCRR,
2011 for reporting by Banks in respect of transactions during 30-days period
should mean calendar month?
Ans. For the purpose of reporting to MHA, 30 days period may be
construed as a calendar month.
Q.35 What are the conditions to be met for the grant of registration and
prior permission?
Ans. In terms of Sec.12 (4) of FCRA, 2010, the following shall be the
conditions for the grant of registration and prior permission:
(a) The `person' making an application for registration or grant of
prior permission-
(i) is not fictitious or benami;
(ii) has not been prosecuted or convicted for indulging in
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activities aimed at conversion through inducement or force,
either directly or indirectly, from one religious faith to
another;
(iii) has not been prosecuted or convicted for creating
communal tension or disharmony in any specified district
or any other part of the country;
(iv) has not been found guilty of diversion or mis-utilisation of
its funds;
(v) is not engaged or likely to engage in propagation of sedition
or advocate violent methods to achieve its ends;
(vi) is not likely to use the foreign contribution for personal gains
or divert it for undesirable purposes;
(vii) has not contravened any of the provisions of this Act;
(viii) has not been prohibited from accepting foreign contribution;
(ix) the person being an individual, such individual has neither
been convicted under any law for the time being in force
nor any prosecution for any offence is pending against him.
(ix) the person being other than an individual, any of its directors
or office bearers has neither been convicted under any law
for the time being in force nor any prosecution for any
offence is pending against him.
(b) the acceptance of foreign contribution by the association/ person
is not likely to affect prejudicially
(i) the sovereignty and integrity of India; or
(ii) the security, strategic, scientific or economic interest of the
State; or
(iii) the public interest; or
(iv) freedom or fairness of election to any Legislature; or
(v) friendly relation with any foreign State; or
(vi) harmony between religious, racial, social, linguistic, regional
groups, castes or communities.
(c) the acceptance of foreign contribution-
(i) shall not lead to incitement of an offence;
(ii) shall not endanger the life or physical safety of any person.
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Q.36 Can a private limited company or a partnership firm get registration
or prior permission under FCRA, 2010?
Ans. As per the definition of the "person" in the FC(R)Act, 2010 which
includes an "association" which in turn is defined as an association of
individuals, whether incorporated or not, having an office in India and
includes a society, whether registered under the Societies Registration Act,
1860, or not, and any other organisation, by whatever name called, a private
limited company too may seek prior permission/registration for receiving
foreign funds in case they wish to do some charitable work at some point
of time.
Q.37 Whether an individual or a Hindu Undivided Family (HUF) can be
given registration or prior permission to accept foreign contribution in terms
of section 11 of FCRA, 2010?
Ans. The definition of the `person' in the Foreign Contribution (Regulation)
Act, 2010 includes any individual and `Hindu Undivided Family' among
others. As such an Individual or an HUF is also eligible to apply for prior
permission to accept foreign contribution.****
Q.38 Whether infusion of foreign share capital in a company registered
under section 25 of the Companies Act, 1956 attracts the provisions of
FCRA, 2010?
Ans. Yes, infusion of foreign share capital in a company registered under
section 25 of the Companies Act, 1956 is treated as foreign contribution.
Q.39 Is recommendation of District Collector or Deputy Commissioner or
District Magistrate mandatory for submission of an application for
registration or prior permission?
Ans. No. Submission of verification certificate from the District Collector
or Deputy Commissioner or District Magistrate is not mandatory. However,
in certain cases, if the amount of foreign contribution for which prior
permission is being sought is less than ` 50 lakh, submission of such a
certificate assists in speedy clearance of the application.
**** For applicants who are individuals, the criteria of registration
under Societies/Trust Act will not be applicable.
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Q.40 If an application for registration or prior permission is submitted
online by an association, does it need to submit that application in physical
form also ?
Ans. Yes. When an application is filed online, a printout of the same is to
be taken after submission and thereafter, it should be submitted, duly signed
by the Chief Functionary of the Association, along with the requisite
documents to the Ministry of Home Affairs. The prescribed forms for
submission of application for grant of Registration and Prior Permission
are FC-3 and FC-4 respectively. The forms are available at MHA website
http://mha.nic.in/fcra/forms/fc-3.pdf and http://mha.nic.in/fcra/forms/
fc-4.pdf respectively.
Q.41 What are the documents to be enclosed with the application?
Ans. (a) Following documents should be enclosed with the application
for grant of Registration:
(i) Hard copy of the online application, duly signed by the Chief
Functionary of the association;
(ii) Certified copy of registration certificate or Trust deed etc.,
as the case may be;
(iii) Activity Report indicating details of activities during the last
three years;
(iv) Copies of audited statement of accounts for the past three
years (Assets and Liabilities, Receipt and Payment, Income
and Expenditure);
(v) If functioning as editor, owner, printer or publisher of a
publication registered under the Press and Registration of
Books Act, 1867, a certificate from the Registrar of
Newspapers for India that the publication is not a newspaper
in terms of section 1(1) of the said Act.
(vi) Fee of Rs. 2000/- by means of demand draft or banker's
cheque in favour of the "Pay and Accounts Officer, Ministry
of Home Affairs", payable at New Delhi.
(b) Following documents should be enclosed with the application
for grant of Prior Permission:
(i) Hard copy of the online application, duly signed by the Chief
Functionary of the association;
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(ii) Certified copy of registration certificate or Trust deed etc.,
as the case may be;
(iii) Commitment letter from foreign donor specifying the
amount of foreign contribution and the purpose for which
it is proposed to be given;
(iv) Copy of the project report for which foreign contribution is
solicited/being offered and is proposed to be utilised;
(v) If functioning as editor, owner, printer or publisher of a
publication registered under the Press and Registration of
Books Act, 1867, a certificate from the Registrar of
Newspapers for India that the publication is not a newspaper
in terms of section 1(1) of the said Act.
(vi) Fee of Rs. 1000/- by means of demand draft or banker's
cheque in favour of the "Pay and Accounts Officer, Ministry
of Home Affairs", payable at New Delhi.
Note: The hard copy of the on-line application along with all the documents
mentioned above must reach the Ministry of Home Affairs, Foreigners
Division (FCRA Wing), NDCC-II Building, Jai Singh Road, New Delhi
110 001 within thirty days of the submission of the on-line application,
failing which the request of the person for grant of registration or
prior permission, as the case may be, shall be deemed to have ceased.
Q.42 How to find the status of pending application for registration/prior
permission. ?
Ans. Status of pending applications for grant of registration or prior
permission may be checked on-line from the Ministry of Home Affairs
web-sitehttp://mha.nic.in/fcraweb/fc_online.htm. One needs to fill in the
numbers on acknowledgement letter or any correspondence from MHA
(Foreigners Division) in the blank format which pops up on the screen
after selection of status enquiry icon (registration/prior permission, as the
case may be)
Q.43 Whether foreigners can be appointed as Executive Committee
members of an association seeking registration or prior permission?
Ans. Organisations having foreign nationals, other than of Indian origin,
as members of their executive committees or governing bodies are generally
not permitted to receive foreign contribution. Foreigners may, however,
be allowed to be associated with such associations in an ex-officio capacity,
17
representing multilateral bodies, foreign contribution from whom is
exempted from the purview of the Foreign Contribution (Regulation) Act,
2010, or in a purely honorary capacity depending upon the persons stature
in his/her field of activity. Subject to relaxation given on a case to case
basis, foreign nationals fulfilling the following conditions may be appointed
as Executive Committee members, after obtaining prior approval of the
Central Government:
(i) the foreigner is married to an Indian citizen;
(ii) the foreigner has been living and working in India for at least
five years;
(iii) the foreigner has made available his/her specialized knowledge,
especially in the medical and health related fields on a voluntary
basis in India, in the past;
(iv) the foreigner is part of the Board of Trustees/Executive
Committee in terms of the provisions in an inter-governmental
agreement;
(v) the foreigner is part of the Board of Trustee/Executive
Committee, in an ex-officio capacity representing a multilateral
body which is exempted from the definition of foreign source.
The need for such an appointment should, however, be adequately justified.
(Kindly also see FAQ no. 3 of Chapter 2 for the legal and statutory
issues related with this query.)
Q.44 Whether Government servants, Judges and employees of a
Government owned/controlled company/body can be on the executive
committees/boards of an association?
Ans. Yes. The legal entity of a `person' under FCRA, 2010 is distinct from
am individual person. Therefore, individuals who cannot receive foreign
contribution may happen to be on the executive committees/boards of
such an association.
Q.45 Whether organisations under Central/State Governments are
required to obtain registration or prior permission under FCRA, 2010 for
accepting foreign contribution?
Ans. In terms of Gazette Notification S.O. 1492(E) dated 01.07.2011, http:/
/mha.nic.in/pdfs/ExempStatBodi-010711.pdf all statutory bodies
18
constituted or established by or under a Central Act or State Act requiring
to have their accounts compulsorily audited by the Comptroller & Auditor
General of India are exempted from all the provisions of FCRA, 2010.
Q.46 What is the procedure for seeking change in the name/address of an
association registered under FCRA?
Ans. For seeking change in the name/address of the association, one should
use the prescribed form available on MHA's website http://mha.nic.in/
fcra/forms/chng_name_addr.pdf and submit the same along with the
requisite documents specified therein.
(Kindly also see FAQ no. 4 of Chapter 2 for the procedural issues
related with this query.)
Q.47 What is the procedure for change of designated FC Bank Account?
Ans. For change of the bank account, an application in prescribed form
mentioning the details of the old bank account and the proposed new bank
account along with justification for change of designated bank, name/
address of the society, copy of registration under FCRA, copy of fresh
resolution of the executive committee (in English or Hindi) for change of
designated back account, certificate from the proposed bank (copy of Bank
Pass Book is not acceptable) that the account is being opened exclusively
for FCRA, may be submitted to MHA. This form is available on website
http://mha.nic.in/fcra/forms/chng_bank_acnt.pdf
Q.48 Whether intimation regarding the change of Members of the
Executive Committee/Governing Council of the association is to be given
to the Government?
Ans. Yes. If at any point of time, such change causes replacement of 50%
or more of such Members of the Executive Committee/Governing Council
of the association, intimation is to be given to MHA within thirty days of
such change in accordance with the undertaking & declaration given by
the association in its application for registration or prior permission, as the
case may be. Further, as per the undertaking & declaration, the association
should not accept any foreign contribution except with prior permission
till the permission to replace the office bearer(s) has been granted by MHA.
(Kindly also see FAQ no. 5 of Chapter 2 for the procedural issues
related with this query.)
19
Q.49 What is the procedure for filing Annual Returns?
Ans. An association permitted to accept foreign contribution is required
under law to maintain separate set of accounts and records exclusively for
the foreign contribution received and submit an annual return, duly
certified by a Chartered Accountant, giving details of the receipt and
purpose-wise utilisation of the foreign contribution. The return is to be
filed for every financial year (1st April to 31st March) within a period of nine
months from the closure of the year i.e. by 31st December each year.
Submission of a `Nil' return, even if there is no receipt/utilization of foreign
contribution during the year, is mandatory. The return is to be submitted,
in prescribed Form FC6, duly accompanied with the balance sheet and
statement of receipt and payment, which is certified by a Chartered
Accountant. The form is available on MHA's web-site http://mha.nic.in/
fcra/forms/fc-6.pdf For further details, please refer to Sections 17, 18 and
19 of FCRA, 2010 and Rule 17 of FCRR, 2011.
Note: It may be noted that the annual return for the financial year
20102011 was to be filed by the 31st December, 2011 in Form FC-3,
i.e., as per FCRA, 1976.
Q.50 For how many years an association which has been granted prior
permission to receive foreign contribution should file the mandatory annual
return?
Ans. `Prior permission' is granted to an association to receive a specific
amount of foreign contribution from a specific donor for a specific purpose.
After receipt of approval from the Government, the association should
submit the mandatory return in FC-6 form for receipt and utilisation of
the foreign contribution on a yearly basis, till the amount of foreign
contribution is fully utilised. Even if no transaction takes place during a
year, a NIL return should be submitted.
Q.51 What are the offences and penalties under FCRA, 2010?
Ans. Section 11 of the FCRA, 2010 prescribes that no person, save as
otherwise provided in the Act, shall accept foreign contribution unless such
person obtains a certificate of registration or prior permission of the Central
Government. Therefore, acceptance of foreign contribution without
obtaining registration or prior permission from the Central Government
constitutes an offence under the Act and is punishable.
20
The provisions of FCRA, 2010 regarding offences and penalties are
Section 33: Making of false statement, declaration or delivering false
accounts:
Any person, subject to this Act, who knowingly, --
(a) gives false intimation under sub-section (c) of section 9 or section
18; or
(b) seeks prior permission or registration by means of fraud, false
representation or concealment of material fact, shall, on
conviction by a court, be liable to imprisonment for a term which
may extend to three years or with fine or with both.
Section 34: Penalty for article or currency or security obtained in
contravention of Section 10:
If any person, on whom any prohibitory order has been served under section
10, pays, delivers, transfers or otherwise deals with, in any manner
whatsoever, any article or currency or security, whether Indian or foreign,
in contravention of such prohibitory order, he shall be punished with
imprisonment for a term which may extend to three years, or with fine, or
with both; and notwithstanding anything contained in the Code of Criminal
Procedure, 1973, the court trying such contravention may also impose on
the person convicted an additional fine equivalent to the market value of
the article or the amount of the currency or security in respect of which
the prohibitory order has been contravened by him or such part thereof as
the court may deem fit.
Section 35: Punishment for contravention of any provision of the Act:
Whoever accepts, or assists any person, political party or organisation in
accepting, any foreign contribution or any currency or security from a
foreign source, in contravention of any provision of this Act or any rule or
order made thereunder, shall be punished with imprisonment for a term
which may extend to five years, or with fine, or with both.
Section 36: Powers to impose additional fine where article or currency or
security is not available for confiscation:
Notwithstanding anything contained in the Code of Criminal Procedure,
1973, the court trying a person, who, in relation to any article or currency
or security, whether Indian or foreign, does or omits to do any act which
21
act or omission would render such article or currency or security liable to
confiscation under this Act, may, in the event of the conviction of such
person for the act or omission aforesaid, impose on such person a fine not
exceeding five times the value of the article or currency or security or one
thousand rupees, whichever is more, if such article or currency or security
is not available for confiscation, and the fine so imposed shall be in addition
to any other fine which may be imposed on such person under this Act.
Section 37: Penalty for offences where no separate punishment has been
provided:
Whoever fails to comply with any provision of this Act for which no separate
penalty has been provided in this Act shall be punished with imprisonment
for a term which may extend to one year, or with fine or with both.
Section 38: Prohibition of acceptance of foreign contribution:
Notwithstanding anything contained in this Act, whoever, having been
convicted of any offence under section 35 or section 37, in so far as such
offence relates to the acceptance or utilisation of foreign contribution, is
again convicted of such offence shall not accept any foreign contribution
for a period of three years from the date of the subsequent conviction.
Section 39: Offences by companies:
(1) Where an offence under this Act or any rule or order made thereunder
has been committed by a company, every person who, at the time the
offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable to
be proceeded against and punished accordingly;
Provided that nothing contained in this sub-section shall render such
person liable to any punishment if he proves that the offence was committed
without his knowledge or that he had exercised all due diligence to prevent
the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act or any rule or order made thereunder has been
committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or other officer of
22
the company, such director, manager, secretary or other officer shall also
be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation for the purposes of this section,
(a) "company" means any body corporate and includes a firm,
society, trade union or other association of individuals; and
(b) `director" in relation to a firm, society, trade union or other
association of individuals, means a partner in the firm or a
members of the governing body of such society, trade union or
other association of individuals.
Section 40: Bar on prosecution of offences under the Act:
No court shall take cognizance of any offence under this Act, except with
the previous sanction of the Central Government or any officer authorised
by that Government in this behalf.
Section 41: Compounding of certain offences:
(1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, any offence punishable under this Act (whether committed
by an individual or association or any officer or employee thereof), not
being an offence punishable with imprisonment only, may, before the
institution of any prosecution, be compounded by such officers or
authorities and for such sums as the Central Government may, by
notification in the official gazette, specify in this behalf.
(2) Nothing in sub-section (1) shall apply to an offence committed by an
individual or association or its officer or other employee within a period of
three years from the date on which a similar offence committed by it or
him was compounded under this section.
ExplanationFor the purposes of this section, any second or subsequent
offence committed after the expiry of a period of three years from the
date on which the offence was previously compounded, shall be deemed
to be a first offence.
(3) Every officer or authority referred to in sub-section (1) shall exercise
the powers to compound an offence, subject to the direction, control and
supervisions of the Central Government.
23
(4) Every application for the compounding of an offence shall be made
to the officer or authority referred to in sub-section (1) in such form and
manner along with such fee as may be prescribed.
(5) Where any offence is compounded before the institution of any
prosecution, no prosecution shall be instituted in relation to such offence,
against the offender in relation to whom the offence is so compounded.
(6) Every officer or authority referred to in sub-section (1), while dealing
with a proposal for the compounding of an offence for a default in
compliance with any provision of this Act which requires by an individual
or association or its officer or other employee to obtain permission to file
or register with or deliver or sent to, the Central Government or any
prescribed authority any return account or other document, may, direct
by order, if he or it thinks fit to do so, any individual or association or its
officer or other employee to file or register with, such return, account or
other document within such time as may be specified in the order.
Q.52 Which are the offences that can be compounded and what would be
the penalties therefor?
Ans: In terms of Gazette Notification S.O. 1976 (E) dated 26.08.2011, http:/
/mha.nic.in/fcra/forms/ComOffNoti-260811.pdf the categories of offences
that can be compounded under section 41 of FCRA, 2010 and the quantum
of penalty for compounding, as indicated against each of the offences, are-
Nature of offence Quantum of penalty
(i) Acceptance of cheque or draft towards ` 10,000/- or 2 per cent
foreign contribution by a `person' of the foreign contribution
without registration or prior permission involved, whichever is
of the Central Government even in cases higher.
where the cheque or draft has not been
deposited in a Bank by the `person'.
(ii) Acceptance of cheque or draft by a ` 25,000/- or 3 per cent
`person' towards foreign contribution of the foreign contribution
without registration or prior permission involved, whichever is
of the Central Government & depositing higher.
the same in a Bank notwithstanding
non-utilisation of the amount of the
foreign contribution.
(iii) Acceptance of foreign contribution by ` 1,00,000/- or 5 per cent
24
a `person' without registration or prior of the foreign contribution
permission of the Central Government involved, whichever is
and utilisation of the same notwith- higher.
standing any inquiry which revealed
that the contribution received was not
diverted towards any purpose other
than the objectives or purpose for
which the same was received, utilisation
of the contribution was as per the
objectives of receipt of the same and
records of receipt and utilisation have
been kept properly.
(iv) Acceptance of foreign contribution in ` 10,000/- or 2 per cent
kind by a `person' without registration of the foreign contribution
or prior permission of the Central involved, whichever is
Government notwithstanding that higher.
nothing adverse was reported
after inquiry.
Q.53 How to apply for compounding of an offence under FCRA, 2010?
Ans: An application for the compounding of an offence under section 41
is to be made to the Secretary, Ministry of Home Affairs, New Delhi on a
plain paper along with a fee of Rs.1000/- (One Thousand only) in the form
of a demand draft or a banker's cheque in favour of the "Pay and Accounts
Officer, Ministry of Home Affairs", payable at New Delhi.
Q.54 What happens after an offence is compounded?
Ans: After payment of the penalty imposed and compounding of the
offence, the person may be granted registration or prior permission, as the
case may be, subject to its fulfilling all parameters.
Q.55 What if the person is unwilling or unable to pay the penalty imposed?
Ans: In the event of failure to pay the penalty, for whatever reason,
necessary action for prosecution of the person shall be initiated.
Q.56 Which are the investigating agencies for investigating and prosecuting
a person for violation of FCRA?
Ans. In terms of Gazette Notification S.O. 2446 (E) dated 27.10.2011, The
25
Central Bureau of Investigation or the investigating agencies (Crime Branch)
of the State Governments, cause of action which arises in their respective
States, are the designated agencies for investigating and prosecuting a
person for violation of FCRA.
Q.57 Can the Government cancel the certificate of registration granted to
a person under FCRA?
Ans. Yes. The conditions for cancellation of certificate, as prescribed under
section 14 of FCRA, 2010 are
14(1) The Central Government may, if it is satisfied after making such
inquiry as it may deem fit, by an order, cancel the certificate if --
(a) the holder of the certificate has made a statement in, or in relation
to, the application for the grant of registration or renewal thereof,
which is incorrect or false; or
(b) the holder of the certificate has violated any of the terms and
conditions of the certificate or renewal thereof; or
(c) in the opinion of the Central Government, it is necessary in the
public interest to cancel the certificate; or
(d) the holder of the certificate has violated any of the provisions of
this Act or rules or order made thereunder.
(e) if the holder of the certificate has not been engaged in any
reasonable activity in its chosen field for the benefit of the society
for two consecutive years or has become defunct.
14 (2) No order of cancellation of certificate under this section shall be
made unless the person concerned has been given a reasonable opportunity
of being heard.
14 (3) Any person whose certificate has been cancelled under this section
shall not be eligible for registration or grant of prior permission for a period
of three years from the date of cancellation of such certificate.
Q.58 Can the Government suspend the certificate of registration granted
to a person under FCRA?
Ans. The conditions for suspension of certificate, as prescribed under
section 13 of FCRA, 2010 are
26
13(1) Where the Central Government, for reasons to be recorded in writing,
is satisfied that pending consideration of the question of cancelling the
certificate on any of the grounds mentioned in sub-section (1) of Section,
14, it is necessary so to do, it may, by order in writing, suspend the certificate
for such period not exceeding one hundred and eighty days as may be
specified in the order.
13(2) Every person whose certificate has been suspended shall
(a) not receive any foreign contribution during the period of
suspension of certificate:
Provided that the Central Government, on an application made
by such person, if it considers appropriate, allow receipt of any
foreign contribution by such person on such terms and
conditions as it may specify;
(b) utilise, in the prescribed manner, the foreign contribution in his
custody with the prior approval of the Central Government.
In terms of Rule 14 of the Foreign Contribution (Regulation) rules,
2011, the unspent amount that can be utilised in case of suspension of a
certificate of registration may be as under: -
(a) In case the certificate of registration is suspended under sub-
section (1) of section 13 of the Act, up to twenty-five per cent of
the unutilised amount may be spent, with the prior approval of
the Central Government, for the declared aims and objects for
which the foreign contribution was received.
(b) The remaining seventy-five per cent of the unutilised foreign
contribution shall be utilised only after revocation of suspension
of the certificate of registration.
(Kindly also see FAQ no. 6 of Chapter 2 for the procedural issues
related with this query.)
Q.59 Can an organization, whose violation under FCRA, 1976 has been
condoned, apply for registration/prior permission?
Ans. After the violation committed by an association has been condoned,
the association can apply for prior permission (PP) only by submitting an
application in form FC-4 http://mha.nic.in/fcra/forms/fc-4.pdf. Once the
PP has been granted and foreign contribution received for specific purpose
has been fully/partially utilized and organisation has submitted annual
27
FC-6 http://mha.nic.in/fcra/forms/fc-6.pdf returns and accounts in
prescribed format pertaining to the PP, it becomes eligible for consideration
of registration under FCRA. Registration would be granted under FCRA,
if other parameters are fulfilled by the association.
Q.60 What is the status of the applications submitted under the repealed
FCRA, 1976 but have not been disposed of?
Ans. In terms of Rule 9(5) of FCRR, 2011, every application made for
registration or prior permission under FCRA, 1976 but not disposed of
before the date of commencement of these rules, i.e., 01.05.2011, shall be
deemed to be an application for registration or prior permission, as the
case may be, under FCRR, 2011 subject to the condition that the applicant
furnishes the prescribed fees for such registration or prior permission, as
the case may be.
Q.61 Whether the registration certificate or prior permission granted under
the repealed FCRA, 1976 shall remain valid when FCRA, 2010 has come
into force?
Ans. Yes. An association granted prior permission or registration under
the repealed FCRA, 1976 shall be deemed to have been registered or granted
prior permission, as the case may be, under FCRA, 2010. Registration
granted under FCRA, 1976 shall remain valid for a period of 5 years from
the 1st May, 2011, i.e., up to the 30th April, 2016.
Q.62 Whether prior permission granted under FCRA, 1976 would also
remain valid for next 5 years from the 1st May, 2011, i.e., the date when
FCRA, 2010 came into force?
Ans. Prior permission granted under FCRA, 1976 as also under FCRA 2010
remains valid till receipt and full utilisation of the amount of FC for which
the permission was/is granted.
Q.63 Whether the certificate of registration is to be renewed and what is
the procedure for such renewal?
Ans. Section 16 of FCRA, 2010 and Rule 12 of FCRR, 2011 may please be
seen in this regard.
Q.64 When should an Association which has been granted registration
under FCRA, 1976 should apply for renewal of registration?
28
Ans. In terms of Rule 12 (2) of FCRR, 2011, an Association registered under
FCRA should apply in Form FC-5 for renewal of its registration six months
before the date of expiry of the certificate of registration. Since registration
granted to Associations under the repealed FCRA, 1976 shall be valid up to
30th April, 2016, such Associations should apply for renewal of their
registration on or before 1st November, 2015.
An Association granted registration under FCRA, 2010, i.e., after 1st May,
2011, shall have to apply for renewal of registration six months before the
date of expiry of the validity of its certificate of registration.
Associations implementing an ongoing multi-year project should apply for
renewal twelve months before the date of expiry of the certificate of
registration.
Q.65 What is foreign hospitality?
Ans. Foreign Hospitality means any offer, not being a purely casual one,
made in cash or kind by a foreign source for providing a person with the
costs of travel to any foreign country or territory or with free board, lodging,
transport or medical treatment.
Q.66 Who cannot accept foreign hospitality without prior approval of the
Ministry of Home Affairs?
Ans. Section 6 of FCRA, 2010 prescribes that "No member of a Legislature
or office bearer of a political party or Judge or Government servant or
employee of any corporation or any other body owned or controlled by
the Government shall, while visiting any country or territory outside India,
accept, except with the prior permission of the Central Government any
foreign hospitality.
Provided that it shall not be necessary to obtain any such permission
for an emergent medical aide needed on account of sudden illness contracted
during a visit outside India, but, where such foreign hospitality has been
received, the person receiving such hospitality shall give, within one month
from the date of receipt of such hospitality an intimation to the Central
Government as to the receipt of such hospitality, and the source from which,
and the manner in which, such hospitality was received by him."
Q.67 Whether approval of the Ministry of Home Affairs is required in cases
where the proposed foreign visit is being undertaken by a person in his/
29
her personal capacity and the entire expenditure thereon is being met by
the person concerned?
Ans. No. Any person belonging to any of the categories specified in Section
6 of FCRA, 2010 would require such approval only if the person concerned
is seeking foreign hospitality from a foreign source.
Q.68 How one can seek permission of the Government for receiving foreign
hospitality?
Ans. Application form (Form FC-2) for this purpose is available on MHA's
web-site http://mha.nic.in/fcra/forms/fc-2.pdf. In terms of Rule 7 of
FCRR, 2011:
(i) Every application for acceptance of foreign hospitality shall be
accompanied by an invitation letter from the host or the host
country, as the case may be, and administrative clearance of the
Ministry or department concerned in case of visits sponsored
by a Ministry or department of the Government.
(ii) The application for grant of permission to accept foreign
hospitality must reach the appropriate authority ordinarily two
weeks before the proposed date of onward journey.
(iii) In case of emergent medical aid needed on account of sudden
illness during a visit abroad, the acceptance of foreign hospitality
shall be required to be intimated to the Central Government
within sixty days of such receipt giving full details including the
source, approximate value in Indian Rupees, and the purpose
for which and the manner in which it was utilized.
Provided that no such intimation is required if the value of such hospitality
in emergent medical aid is up to one lakh rupees or equivalent thereto.
30
CHAPTER 2
CLARIFICATORY FAQs
In this chapter clarificatory notes have been provided to certain
FAQs of FCRA Division, MHA, as provided in Chapter 1 in the
light of the FCR Act, 2010 and the Rules thereof.
Q.1 Will individual receiving contribution (including gifts) for personal
purposes be covered ?
Ans. The term `person' includes individuals, therefore, all individuals
except the prohibited category can receive foreign contribution subject to
the compliance of FCRA 2010. The FCRA, 2010 has confusing provisions in
this regard, however, the overall intent seems to be towards regulating all
foreign contributions received by individuals from foreign source.
An individual may receive foreign contribution or gift for personal
consumption or as a trustee to execute any specific programme, research,
activity etc. Some foreign donors do send money in individual bank
accounts for charitable project. The issue is whether both type of foreign
contribution receipts shall be covered by the act or not.
Section 11(1) of the FCRA provides that any person receiving foreign
contribution for a definite programme should apply for registration. In
other words it may be implied that any person receiving foreign contribution
for personal use may not apply for registration. This provision creates
confusion on whether individuals receiving gifts or contribution for personal
purposes are exempted from the law. Further section 12(4)(a)(vi) provides
that any person applying for registration or prior permission shall not use
foreign contribution for personal gain for divert it for any undesirable
purpose. To sum, the registration and procedural provisions of the act have
been structured only to cover contribution received for a definite purpose,
but the statutory definition of foreign contribution and inclusion of
31
individuals in the definition of the term `person' makes it applicable on all
individuals who receive foreign contribution from a foreign source. But at
the same time the act is not clear how such contribution received by
individuals will be regulated when the registration and prior permission
are required to be taken only when foreign contribution is received for
definite purpose.
In other words, the application of the act on individual is very clear,
further gifts from foreign sources also seem to be covered under the
definition of foreign contribution. But the act does not regulate personal
gifts or contribution therefore, individuals or even institution, technically,
can receive gifts from foreign sources without prior permission or
registration. The regulation of personal receipts and gifts from foreign
sources has not been properly articulated. Further, the act does not debar
receiving gifts and contribution for personal purposes. The act provides
for reporting of gifts received from relatives above ` 1 lakh, but it is silent
about reporting of gifts received from foreign source. In this context the
chapter on "Gift Received from Relatives & Foreign Sources". Further, the
preamble of the act as provided in the beginning of this chapter states that
the act is to regulate the foreign contribution or foreign hospitality of certain
individuals, associations or companies. In other words, the act at the outset
also makes it clear that it does not apply to all category of persons.
Overall, it seems that the act applies to all persons for foreign
contribution received for a definite purpose, in other words the act would
not apply to foreign contribution received for personal use or as gift. Only
the specified individual under section 3 are debarred from receiving FC
except gifts from relatives.
Q.2 Whether foreign remittances received from a relative are to be treated
as foreign contribution as per FCRA, 2010?
Ans. Rule 6 of FCRR, 2011 provides any gift received from a relative in
excess of ` 1 lakh, per annum, needs to be intimated to the Central
Government. It may be noted that no prior permission is necessary to receive
gifts from relatives staying abroad but an intimation has to be sent within
30 days in Form FC-1. Rule 6 of FCRR 2011 is reproduced as under :
"6. Intimation of receiving foreign contribution from relatives.
- Any person receiving foreign contribution in excess of one lakh
32
rupees or equivalent thereto in a financial year from any of his
relatives shall inform the Central Government in Form FC-1
within thirty days from the date of receipt of such contribution."
In this context it may be noted that the FCRA law would not apply
if the relative is an Indian holding valid Indian passport. The Form FC-1 is
enclosed as a part of this book and is also available on the website http://
mha.nic.in/fcra/forms/fc-1.pdf.
Since even the persons specified in Section 3 of FCRA 2010, i.e.,
persons not permitted to accept foreign contribution, are also permitted to
accept gifts from their relatives under Section 4(e) of the Act, subject to
the provisions of Section 10, it is obvious that any other person in general
is also permitted to accept gift from his/her relative.
Rule 6A creates an anomalous situation which is described as under :
· A gift from relative holding Indian passport is totally exempted
for everybody.
· A gift from non-relative holding Indian passport is also totally
exempted for everybody.
· A gift from relative who is a foreigner is also totally exempted
for everybody, but an intimation has to be sent within 30 days
in Form FC-1, if the amount exceed ` 1 lakhs in a year.
· A gift from non-relative who is a foreigner is also totally
exempted for everybody, and it seems that no intimation has
to be sent within 30 days in Form FC-1.
Q. 3 Are foreigners allowed as members or board members of the NPO ?
Ans. It may be noted that the FCRA 2010 and the Rules thereof are silent
about the issue of foreigners on Board of an NPO. The FCRA department
through its FAQ is not permitting foreigners on Board as discussed above.
The legal sanctity of the authority of the FCRA department to impose such
conditions is not based on the statute or the Rules thereof.
Further, under the general law, as far as registering a Charitable
Organisation with foreigners as subscribers/members/trustees is
concerned, there is no law, which prohibits such registration. Infact there
33
are case laws, which say "even if all the subscribers are foreigners yet the
society will be Indian if it is registered in India and vice-versa1".
On the other hand, a society will be considered as foreign society if
it is registered outside India although all the members are of Indian origin2.
Q. 4 Procedure for Change of Address to another District or State
Ans. When the change of address is from one district to another or to
another state, then it may be noted that the FCRA department is following
a detailed procedure for validating such changes. The FCRA department
has been asking the concerned organisation to file a new application for
registration in form FC-3. It is not very clear why the FCRA department is
insisting on filing of an application for registration in form FC-3, to validate
and update the change of address. The reason for asking for a registration
application is that the registration number of organisation are based on
district code and state code which also require change. However, any inquiry
or internal procedure regarding change of address should be done internally
and it seems unusual in asking a registered organisation to apply for fresh
registration.
The FCRA department simultaneously also request the organisation
to apply for cancellation of the old registration in lieu of the new registration.
It is confusing to the applicant organisations to request for cancellation of
the existing registration. It is important that FCRA department evolves a
more rational mechanism for change of address.
Q. 5 Whether intimation regarding more than 50% change of Members
of the Executive Committee/Governing Council of the association is to be
given to the Government?
Under FCRA, any change in the board members in excess of 50%
shall be made with prior permission. This condition is a part of the
undertaking provided by the applicant at the time of making application
for `registration' or `prior permission'. Therefore, even though it is not
1 From Anands Commentaries on Socieities Registration Act, 1860, (i) General Company for promotion of Land Credit (1870)
5 ch. Ap.363 and on appeal (1871) 5 H.L. 176 (ii) A.G. vs. Jewish Colonisation Association (1901) 1 K.B. 123.
2
Janson vs. Drifontein Mines (1902) A.C. 484, Gramophone and Typewriter Ltd. vs. Stanley (1906) 2 K.B. 856.
34
mentioned in the Act or the Rules, it becomes binding on all the
organisations by virtue of the undertaking given at the time of making
application for `registration' or `prior permission'. In fact the undertaking
provided in Form FC-3 (application for registration) provides that prior
permission should be taken for any change in the board members in excess
of 50%. On the contrary the undertaking provided in Form FC-4 (application
for prior permission) provides that intimation should be given to FCRA
department within 30 days of any change in the board members in excess
of 50%.
Does this law apply to organisations registered under the repealed
fcra 1976 : The undertaking regarding change of more than 50% board
member was there in the old form FC-8 also. In fact this undertaking
became a part of the application form for registration with effect from
27.12.1996 when the erstwhile form FC-8 was amended. In other words, all
organisations who have applied for FCRA registration after 27th December
1996 have given the undertaking regarding prior approval for change in
more than 50% of the board members. Therefore, technically all
organisations who have applied after 27th December 1996 are bound by
this law. The organisations who have applied and obtained registration
before 27.12.1996 are not subject to this provision.
Q. 6 Circumstances and Procedure through which FCRA department can
suspend the certificate of registration granted to a person under FCRA?
Ans. Section 13 of FCRA 2010 provides the power to the Central
Government to suspend the registration pending cancellation of certificate,
for a period upto 180 days. During suspension, the organisation cannot
receive any foreign contribution without prior approval.
FCRA 2010 does not specifically provide for any opportunity of being heard
before effecting the suspension order. The section 13(1) also does not
provide for reasons to be recorded in writing. However, the provision
provides that the organisation shall be provided opportunity of being heard
during the period of 180 days of suspension. After the completion of 180
days and depending on the findings, the registration will either be cancelled
or restored. The issue arising out of the provision is whether FCRA
department can suspend registration without providing any opportunity
of being heard or without giving any reasons in writing. Based on legal
35
interpretation and judicial precedence, it seems that FCRA department
cannot suspend registration without providing any opportunity of being
heard or without giving any reasons in writing.
On plain reading of the provision, it can be seen that section 13 uses the
word "may" as highlighted in the text of the section reproduced below :
"13 Suspension of certificate.(1) Where the Central Government, for
reasons to be recorded in writing, is satisfied that pending
consideration of the question of cancelling the certificate on any of
the grounds mentioned in sub-section (I) of section 14, it is necessary
so to do, it may, by order in writing, suspend the certificate for such
period not exceeding one hundred and eighty days as may be specified
in the order."
The use of word "may" implies that there is a discretion provided in
the act which may or may not be excercised. If the FCRA department wants
to excercise such discretion, then it has to provide opportunity of being
heard as well as reasons in writing. The Hon'ble Delhi High Court in the
case Indian Social Action Forum (INSAF) v. Union of India W.P.(C) 4982/
2013 & CM 11248/2013 ruled that the language of section 13(1) does not
empower the FCRA department to suspend registration without providing
opportunity of being heard or reasons in writing.
36
CHAPTER 3
OTHER IMPORTANT FAQs
Q.1 Is FEMA also applicable to foreign contribution received by Indian
NGO?
Ans. For foreign contribution received by Indian NGO, Foreign
Contribution Regulation Act, 2010 is applicable. FEMA is applicable mainly
for business transaction. Moreover, FCRA is regulated by Home Ministry,
whereas FEMA is regulated by Finance Ministry. FEMA may also be
applicable to foreign contribution received by Indian NGO if it is involves
receiving of loan.
Q.2 Whether grant received from Indian company like Infosys, HDFC,
in which more than 50% of shareholding is held by foreigners shall be
treated as FC and thereby NGO cannot receive donations from such
companies without FC registration?
Ans. Yes, donation received from Indian company, in which more than
50% of shareholding is held by foreigners, can be received only after FC
registration or prior permission.
Q.3 Whether the operational bank account has to be a current A/c or it
can be a savings A/c?
Ans. There is no restriction as such under FCRA Act and therefore,
operational bank account can either be a current account or a savings
account. It may be noted that such account should be for utilisation purpose
only and no fforeign contribution should be directly received in such
accounts.
Q.4 Whether foreign contribution received in cash at field level can be
deposited into the operational bank A/c?
Ans. There is no clarity on this issue. FAQs on FRCA issued by Home
37
Ministry (FAQ No.21) provides that the operational bank account can receive
funds only from Mother account. However, we understand foreign
contribution received in cash at field level are not necessarily required to
be deposited in the designated bank account. Such income is treated as
income as subsequent recipient and can be added to the FC balance.
Further, there seems to be no statutory provision prohibiting the deposit
such field level transactions in the operational bank account. In this context
it may also be noted that it is technically not possible to receive all foreign
contribution (received as subsequent recipient) in the designated bank
account, for example interest earned on various multiple/operational bank
accounts.
Q.5 Whether the foreign contribution received by cheque at field level
can only be deposited in the designated bank A/c?
Ans. Foreign contribution received by cheque at field level should be
deposited in the designated bank account.
Q.6 In the case of joint payments having funding from FC sources and
non-FC sources, whether the amount can be transferred from FCRA to
common pool A/c for making necessary expenses, e.g. payment of salary
& provident fund funded both from FC sources & non-FC sources.
Ans. There is no clarity on this issue as FAQs on FCRA issued by Home
Ministry (FAQ No.22) provides that mixing of local fund with FCRA is not
allowed. Effort should always be made to avoid mixing of local fund with
FC funds. For instance in case of payment to provident fund authorities
(where only one instrument is required to be made) the organisation may
prepare two `pay yourself' cheque for the bank and get one bankers cheque
for the PF authority.
However, in certain technical issues where there is no possibility of
segregating FC funds from local funds then temporary mixing may be
allowed to facilitate the payment. Such extreme example could be like
receipt of income tax refund. The tax refund may be apportioned
accordingly and be transferred to the respective bank account.
Q.7 In which A/c income tax refund cheque (consisting both of FC &
non-FC) should be deposited and how to transfer the fund to respective
account?
Ans. As discussed above the cheque for Income tax refund received from
38
income tax department should be deposited first into local or designated
FC account depending on the dominant share of FC or LC and then
respective apportioned amount can be transferred to the foreign
contribution or local bank account as the case may be. If the Income tax
refund is received in specific pre determined account then the respective
apportioned amount may be transferred to the foreign contribution or
local bank account as the case may be.
Q.8 Can an organization take loan from local sources for FCRA project?
Ans. The FAQs on FCRA issued by Home Ministry (FAQ No.22) provides
that mixing of local fund with FCRA is not allowed. It needs to be understood
that to utilise local fund for foreign projects it is not necessary to transfer
local fund to FC Bank account and vice versa. For example if local money
is used for an FC project then to that extent the expenditure remain in the
local books only. Similarly if FC money is used for local project then to
that extent the expenditure remain in the FC books only.
Q.9 What expenses constitute administrative expenses under FCRA,
2010?
Ans. Basically this will include all expenses incurred for managing the
program. However, the FCR Rules have distinguished the term `managing'
from `expenditure incurred directly on furtherance of objectives' and `field
level expenditures'. Therefore, all expenditure including salary, travel etc.
which can be proved to be towards `directly on furtherance of objectives'
or `field level expenditures' will be treated as programm expenses.
Q.10 What is the accounting and reporting requirement for administrative
expenses under FCRA, 2010?
Ans. There is no specific accounting and reporting requirement for
administrative expenses under FCRA, 2010. It is not required to change
the accounting process or maintain separate books of account for
administrative expenses under FCRA, 2010. There is separate reporting
requirement for administrative expenses under FCRA, 2010, however all
organisation should be in a position to provide the detailed of administrative
expenses if and when such information are sought by the FCRA department.
Q.11 Whether as a part of project program NGO can built community
asset like school building or community hall out of FC fund without
complying with the formalities as provided in rule 24?
39
Ans. We understand where community asset is created out of foreign
contribution fund, necessary formalities as provided in Rule 24 should be
complied with.
Q.12 Whether NGO can transfer FC fund as a grant/loan to self help
groups?
Ans. We understand loan or grant to an Individual can be made out of
foreign contribution fund for self consumption. However if the grant or
loan is given to self help group then we understand formalities as provided
in Rule 24 should be complied with.
Q.13 What will be the implications if grant is used for purposes other
than purposes for which it is received?
Ans. This can be considered as violation of Section 8 of FCRA, 2010 and
therefore, the registration of the organisation can be cancelled.
Q.14 What shall be the option available to NGO if application for
registration/prior permission is rejected?
Ans. The options available with the NGO include :
i) Making application for the revision of the order within one year
from the date of the order u/s.32 of FCRA 2010. However revision
for application can be made if no appeal is filed in the court.
ii) An appeal can also be made to the High Court against rejection
of application for registration/prior permission u/s. 31(2) of
FCRA 2010.
Q.15 If more than 50% of members have changed due to death what
shall be the implication for NGO and what formalities should be complied
with ?
Ans. Again there is no clarity on this issue. We understand necessary
information should be given to the Home Ministry, wherever such changes
have taken place due to death.
Q.16 Whether it is mandatory to file three Nil returns FC 6, FC 7 & FC 8
if no foreign contribution is received or filing of only FC 6 shall be sufficient?
Ans. From the strict Interpretation of the Rules, it appears that the three
40
separate Nil Return should be furnished if no foreign contribution received
during the year. However if we are filing only one Nil Return i.e. FC 6, it is
advisable that we must mention Nil while filing in kind contribution. It
may be note that FC 6 returns include information regarding contribution
received in kind also, as a result, in case of nil return all the information
are duly sent. Therefore, filing FC 6 return should be sufficient when there
is no FC receipt during the year. This is an issue which requires attention
of the Home Ministry for necessary clarification.
Q.17 How to show the refund of grant back to the Donor while preparing
the FC 6 return?
Ans. Refund of grant should be included as utilisation under the
respective purpose for which the grant received has been classified. It may
be noted that, the FCRA does not debar refund of grant back to the Donor,
irrespective of the fact, whether the donor is from India or abroad.
Q.18 FC 6 requires details for each purpose wise expenditure on the basis
of place with address of specific activities. Whether this information should
be given on basis of each village or district or any other basis.
Ans. Again this is no clarity on this issue. We understand the place &
address of the specific activities should be given on the basis of at least
block level detail. As in case of large organisation villagewise detail may
not be possible and practicable. On the other hand providing only district
level detail will not provide the rural distribution of money.
Q.19 The format of FC 7 is in the form of stock ledger which summarises
the information on the basis of date. Hence, if organisation has received
more than one article then how such returns should be prepared and
submitted?
Ans. The form of FC 7 is the item wise stock ledger and therefore in case
if there is more than one item separate sheet should be used for each item
received in kind.
Q.20 Whether it is mandatory to file the return online or physical return
can also be submitted ?
Ans. So far as it has not become mandatory to file the return online.
However it is suggested that online return should be be filed followed by
the submission of physical forms alongwith Annexures.
41
Q.21 How the subsequent recipients can be classified and what
documentary evidence the organisation should possess in support of such
classification ?
Ans. Subsequent recipient is not defined. However if the grants are
received from any FC registered organisation in India or any income is
generated out of FC assets/investment, then these receipts should be
classified as subsequent recipient. The organisation must have the evidence
on record that the particular amount classified as subsequent receipt is
received from any FC registered organisation or the income generated by
the organisation out of its FC assets/investment. In other words when the
funds are received directly from a foreign source it is treated as first
receipient and all other receipts are treated as subsequent receipient.
Q.22 Whether return once filed can be revised and if no, what shall be
process of rectification of mistake as contained in the return?
Ans. Presently there is no provision under FCRA to revise the return
submitted online or physically. However, whenever a mistake is observed
in the return submitted it is recommended to submit revised return
explaining the reason for revision.
Q.23 What shall be the implications if return is not filed?
Ans : If the organisation doesn't file the return the implication includes :
a) Audit of accounts by Govt. Officers (sec. 20)
b) It may lead to cancellation of FCRA registration (Sec. 14(1)(d).
Further penalties may be levied as discussed below.
Q.24 What are the consequences of delay in filing of Annual return?
Ans. The FCRA department, Ministry of Home Affair's (Foreigners
Division-FCRA) has issued notification No. II/21022/23(49)/2012-FCRA-
III, dt. 26th April, 2013 through which it has provided stringent penalties
for delayed filing of annual return in Form FC-6.
It may be noted that currently the last date of filing Form FC-6 is 31st
December, i.e. nine months from the end of the financial year. The penalty
proposed are as under :
2% of the amount received or Rs.10,000/- whichever is higher,
if the delay is within by 90 days.
42
3% of the amount received or Rs.25,000/- whichever is higher,
if the delay is between 90 to 100 days.
5% of the amount received or Rs.50,000/- whichever is higher
if the delay is more than by 180 days, plus Rs. 500 per day for
every day beyond 180 days.
Q.25 What shall be the options available to NGO if application for renewal
is rejected ?
Ans. The options available with the NGO include :
i) Making application for the revision of the order within one year
from the date of the order u/s.32 of FCRA2010. However revision
for application can be made if no appeal is filed in the court.
ii) An appeal can also be made to the High Court against rejection
of application for registration/prior permission u/s.31(2) of
FCRA 2010.
Q.26 What shall be the implications for NGO if application for renewal
is rejected ?
Ans. The NGO can not receive foreign fund till the rejection order passed
against the NGO is revised or cancelled by the High Court.
Q.27 What shall be the implication if application for renewal is not made?
Ans. If no application for renewal is made the NGO can not receive fresh
foreign contribution.
Q.28 What shall be the implication for NGO if registration is cancelled
or if registration is not renewed?
Ans. If registration is cancelled then all the assets shall vest with the
designated Authority. However, if registration is not renewed, the
organisation can not receive fresh contribution.
Q.29 Who can be covered under FCRA?
Ans. The `person' as defined in FCRA is covered under FCRA. The term
`person' includes individual, HUF, Section 25 Company & Associated person.
The term `Association' is so widely defined that it include all forms of
organisation. This issue has been discussed in Chapter 2.
43
Q.30 Whether the Pvt Ltd./public company and other profit making
bodies shall also be subject to FCRA?
Ans. Yes, Pvt. Ltd., Public company and other profit making company
shall subject to FCRA if they receive any grant for defined purpose as per
section 11 of FCRA2010.
Q.31 Whether branch and liaison office of a foreign NGO dependent only
on remittance from head office requires FCRA registration?
Ans. As technically no transfer is involved when funds are transferred
from HO to Indian office, FCRA is not applicable. FCRA shall only apply if
the branch office or liaison office is receiving foreign contribution from
sources other than their head quarters.
Q.32 Whether the grant received from Branch office in India should be
classified as first recipient or subsequent recipient?
Ans. If the branch office in India does not have any FCRA registration in
India, then the grant received from the branch office should be classified
as first recipient.
Q.33 What shall be the format in which data should be put in public
domain?
Ans. No format has been prescribed. We recommend that at least the
summarised Receipt & Payment A/c can be placed within the public
domain. In the interest of transparency the organisation may upload the
entire audited financial statements.
Q.34 What shall constitute public domain?
Ans. Again public domain has not defined and therefore it may include
publication in print media, uploading of data in website, etc.
Q.35 How long shall the data be kept in public domain for a particular
financial year?
Ans. Rule 13 does not clearly mention the time limit for which the data
should be kept in public domain. However we recommend if it is kept in
website it should be kept at least for one year.
44
Q.36 When an NGO should bring financial data into public domain?
Ans. Again there is no time limit within which financial data should be
uploaded t in public domain. However we understand it should uploaded
in public domain latest by the time we furnish annual return with the Home
Ministry.
Q.37 What are the requirements for maintenance of books of accounts?
i) Rule 11 : a separate set of books of accounts and records shall
be maintained, exclusively for foreign contribution received &
utilised.
ii) Books of accounts should be preserved for a period of six years
[As per Section 19 & Rule 17(7)]
iii) Investment Register should be maintained (as per Rule 4(1)(3)]
Q.38 Whether FC books of accounts should be maintained in cash basis?
Ans. FCRAct/Rules doesn't provide for any particular basis of accounting
& therefore FC books can be maintained either on cash or accrual basis.
However as reporting requirement includes submission of Receipt &
Payment A/c, books of account should preferably be maintained on cash
basis.
Q.39 FC funds are received without permission/registration and
compounding of offences.
Ans. The Foreign Contribution Regulation Act, 2010 (FCRA) provides for
compounding of offences. This new provision would provide relief to many
organisations who commit violation, sometimes, unintentionally. Under the
new provisions, organisations who have violated the provisions of FCRA
can resolve their case by paying financial penalties only. Some highlight of
the new provisions are as under :
Under the old FCRA law organisations were being prosecuted, even,
for small offences such as receiving FC funds in the non FC bank
account. There are instances where organisations have fought cases
for decades together against petty offences.
The new FCRA provides that most of the offences (except those which
are subject to imprisonment only) can be resolved by payment of
financial penalty.
45
any such offence may, before the institution of any prosecution, be
compounded against payment of specified sums.
Once an offence is compounded, the same person cannot avail the
benefit of compounding if such offence is commited again within
three years.
However, if an offence is commited after three years of compounding,
then such subsequent offence will be treated as first offence and can
be compounded again.
If a person accepts a cheque or draft from foreign source (without
registration or prior permission) it will be treated as offence even if
such cheque or draft is not deposited in the bank account, then the
minimum penalty is ` 10,000/- or 2% of the amount whichever is
higher.
If a person accept a cheque or draft from foreign source (without
registration or prior permission) and such cheque or draft is deposited
in the bank account, then the minimum penalty is ` 25,000/- or 3% of
the amount whichever is higher.
If a person accepts foreign contribution from foreign source (without
registration or prior permission) and utilises it fo specified purposes,
then the minimum penalty is Rs. 1,00,000/- or 5% of the amount
whichever is higher.
If a person accepts foreign contribution in kind from foreign source
(without registration or prior permission), then the minimum penalty
is ` 10,000/- or 2% of the amount whichever is higher.
Apart from the above specified penalties, the Director or Deputy
Secretary in charge of FCRA Wing, Ministry of Home affairs shall be
the authority for exercising the powers of compounding of an offence.
The option to compound and close an offence without prosecution is
a very welcome change. This provision shall provide relief to both
the Government Authorities and the litigants as offences could be
resolved lawfully without fighting time consuming legal cases.
46
FOREIGN CONTRIBUTION
(REGULATION) ACT, 2010
An Act to consolidate the law to regulate the acceptance and utilisation of
foreign contribution or foreign hospitality by certain individuals or
associations or companies and to prohibit acceptance and utilisation of
foreign contribution or foreign hospitality for any activities detrimental to
the national interest and for matters connected therewith or incidental
thereto.
BE it enacted by Parliament in the Sixty-first Year of the Republic of India
as follows:--
CHAPTER I
PRELIMINARY
Short title, extent, application and commencement.
1. (1) This Act may be called the Foreign Contribution (Regulation) Act,
2010.
(2) It extends to the whole of India, and it shall also apply to--
(a) citizens of India outside India; and
(b) associate branches or subsidiaries, outside India, of companies or
bodies corporate, registered or incorporated in India.
(3) It shall come into force on such date as the Central Government may,
by notification in the Official Gazette*, appoint:
Provided that different dates may be appointed for different provisions of
this Act and any reference in any such provision to the commencement of
this Act shall be construed as a reference to the coming into force of that
provision.
Definitions.
2. (1) In this Act, unless the context otherwise requires,--
(a) "association" means an association of individuals, whether
incorporated or not, having an office in India and includes a society,
whether registered under the Societies Registration Act, 1860 (21 of
1860), or not, and any other organisation, by whatever name called;
*S.O. 909(E), dated 29-4-2011 - In exercise of the powers conferred by sub-section (3) of section 1 of the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby appoints the 1st day
of May, 2011 as the date on which the provisions of the said Act shall come into force.
47
(b) "authorised person in foreign exchange" means an authorised person
referred to in clause ( c) of section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999);
(c) "bank" means a banking company as referred to in clause (c) of section
5 of the Banking Regulation Act, 1949 (10 of 1949);
(d) "candidate for election" means a person who has been duly nominated
as a candidate for election to any Legislature;
(e) "certificate" means certificate of registration granted under sub-
section (3) of section 12;
(f) "company" shall have the meaning assigned to it under clause (17) of
section 2 of the Income-tax Act, 1961 (43 of 1961);
(g) "foreign company" means any company or association or body of
individuals incorporated outside India and includes--
(i) a foreign company within the meaning of section 591 of the
Companies Act, 1956 (1 of 1956);
(ii) a company which is a subsidiary of a foreign company;
(iii) the registered office or principal place of business of a foreign
company referred to in sub-clause (i) or company referred to
in sub-clause (ii);
(iv) a multi-national corporation.
Explanation.--For the purposes of this sub-clause, a corporation
incorporated in a foreign country or territory shall be deemed to be
a multi-national corporation if such corporation,--
(a) has a subsidiary or a branch or a place of business in two or
more countries or territories; or
(b) carries on business, or otherwise operates, in two or more
countries or territories;
(h) "foreign contribution" means the donation, delivery or transfer made
by any foreign source,--
(i) of any article, not being an article given to a person as a gift
for his personal use, if the market value, in India, of such article,
on the date of such gift, is not more than such sum as may be
specified from time to time, by the Central Government by
the rules made by it in this behalf;
(ii) of any currency, whether Indian or foreign;
(iii) of any security as defined in clause (h) of section 2 of the
Securities Contracts (Regulation) Act, 1956 (42 of 1956) and
48
includes any foreign security as defined in clause (o) of section
2 of the Foreign Exchange Management Act, 1999 (42 of 1999).
Explanation 1.--A donation, delivery or transfer of any article,
currency or foreign security referred to in this clause by any person
who has received it from any foreign source, either directly or
through one or more persons, shall also be deemed to be foreign
contribution within the meaning of this clause.
Explanation 2.--The interest accrued on the foreign contribution
deposited in any bank referred to in sub-section (1) of section 17 or
any other income derived from the foreign contribution or interest
thereon shall also be deemed to be foreign contribution within the
meaning of this clause.
Explanation 3.--Any amount received, by any person from any
foreign source in India, by way of fee (including fees charged by an
educational institution in India from foreign student) or towards cost
in lieu of goods or services rendered by such person in the ordinary
course of his business, trade or commerce whether within India or
outside India or any contribution received from an agent of a foreign
source towards such fee or cost shall be excluded from the definition
of foreign contribution within the meaning of this clause;
(i) "foreign hospitality" means any offer, not being a purely casual one,
made in cash or kind by a foreign source for providing a person with
the costs of travel to any foreign country or territory or with free
boarding, lodging, transport or medical treatment;
(j) "foreign source" includes,--
(i) the Government of any foreign country or territory and any
agency of such Government;
(ii) any international agency, not being the United Nations or any
of its specialised agencies, the World Bank, International
Monetary Fund or such other agency as the Central
Government may, by notification, specify in this behalf;
(iii) a foreign company;
(iv) a corporation, not being a foreign company, incorporated in a
foreign country or territory;
(v) a multi-national corporation referred to in sub-clause (iv) of
clause (g);
(vi) a company within the meaning of the Companies Act, 1956,
and more than one-half of the nominal value of its share capital
is held, either singly or in the aggregate, by one or more of the
49
following, namely:--
(A) the Government of a foreign country or territory;
(B) the citizens of a foreign country or territory;
(C) corporations incorporated in a foreign country or
territory;
(D) trusts, societies or other associations of individuals
(whether incorporated or not), formed or registered in
a foreign country or territory;
(E) foreign company;
(vii) a trade union in any foreign country or territory, whether or
not registered in such foreign country or territory;
(viii) a foreign trust or a foreign foundation, by whatever name
called, or such trust or foundation mainly financed by a foreign
country or territory;
(ix) a society, club or other association of individuals formed or
registered outside India;
(x) a citizen of a foreign country;
(k) "Legislature" means--
(A) either House of Parliament;
(B) the Legislative Assembly of a State, or in the case of a State
having a Legislative Council, either House of the Legislature
of that State;
(C) Legislative Assembly of a Union Territory constituted under
the Government of Union Territories Act, 1963 (20 of 1963);
(D) Legislative Assembly for the National Capital Territory of Delhi
referred to in the Government of National Capital Territory of
Delhi Act, 1991 (1 of 1992);
(E) Municipality as defined in clause (e) of article 243P of the
Constitution;
(F) District Councils and Regional Councils in the States of Assam,
Meghalaya, Tripura and Mizoram as provided in the Sixth
Schedule to the Constitution;
(G) Panchayat as defined in clause ( d) of article 243 of the
Constitution; or
(H) any other elective body as may be notified by the Central
Government;
50
(l) "notification" means notification published in the Official Gazette and
the expression "notify" shall be construed accordingly;
(m) "person" includes--
(i) an individual;
(ii) a Hindu undivided family;
(iii) an association;
(iv) a company registered under section 25 of the Companies Act,
1956 (1 of 1956);
(n) "political party" means--
(i) an association or body of individual citizens of India--
(A) to be registered with the Election Commission of India
as a political party under section 29A of the
Representation of the People Act, 1951 (43 of 1951); or
(B) which has set up candidates for election to any
Legislature, but is not so registered or deemed to be
registered under the Election Symbols (Reservation and
Allotment) Order, 1968;
(ii) a political party mentioned in column 2 of Table 1 and Table 2
to the notification of the Election Commission of India
No. 56/J&K/02, dated the 8th August, 2002, as in force for the time
being;
(o) "prescribed" means prescribed by rules made under this Act;
(p) "prescribed authority" means an authority specified as such by rules
made by the Central Government under this Act;
(q) "registered newspaper" means a newspaper registered under the
Press and Registration of Books Act, 1867 (25 of 1867);
(r) "relative" has the meaning assigned to it in clause (41) of section 2 of
the Companies Act, 1956 (1 of 1956);
(s) "scheduled bank" shall have the meaning assigned to it under clause
(e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934);
(t) "subsidiary" and "associate" shall have the meanings, respectively
assigned to them in the Companies Act, 1956 (1 of 1956);
(u) "trade union" means a trade union registered under the Trade Unions
Act, 1926 (16 of 1926).
(2) Words and expressions used herein and not defined in this Act but
defined in the Representation of the People Act, 1950 (43 of 1950) or the
Representation of the People Act, 1951 (43 of 1951) or the Foreign
51
Exchange Management Act, 1999 (42 of 1999) shall have the meanings
respectively assigned to them in those Acts.
CHAPTER II
REGULATION OF FOREIGN CONTRIBUTION
AND FOREIGN HOSPITALITY
Prohibition to accept foreign contribution.
3. (1) No foreign contribution shall be accepted by any--
(a) candidate for election;
(b) correspondent, columnist, cartoonist, editor, owner, printer or
publisher of a registered newspaper;
(c) Judge, Government servant or employee of any corporation or any
other body controlled or owned by the Government;
(d) member of any Legislature;
(e) political party or office-bearer thereof;
(f) organisation of a political nature as may be specified under sub-
section (1) of section 5 by the Central Government;
(g) association or company engaged in the production or broadcast of
audio news or audio-visual news or current affairs programmes
through any electronic mode, or any other electronic form as defined
in clause (r) of sub-section (1) of section 2 of the Information
Technology Act, 2000 (21 of 2000) or any other mode of mass
communication;
(h) correspondent or columnist, cartoonist, editor, owner of the
association or company referred to in clause (g).
Explanation.--In clause (c) and section 6, the expression "corporation"
means a corporation owned or controlled by the Government and includes
a Government company as defined in section 617 of the Companies Act,
1956 (1 of 1956).
(2) (a) No person, resident in India, and no citizen of India resident outside
India, shall accept any foreign contribution, or acquire or agree to acquire
any currency from a foreign source, on behalf of any political party, or any
person referred to in sub-section (1), or both.
(b) No person, resident in India, shall deliver any currency, whether
Indian or foreign, which has been accepted from any foreign source, to
any person if he knows or has reasonable cause to believe that such other
person intends, or is likely, to deliver such currency to any political party
or any person referred to in sub-section (1), or both.
52
(c) No citizen of India resident outside India shall deliver any currency,
whether Indian or foreign, which has been accepted from any foreign
source, to--
(i) any political party or any person referred to in sub-section (1), or
both; or
(ii) any other person, if he knows or has reasonable cause to believe
that such other person intends, or is likely, to deliver such currency
to a political party or to any person referred to in sub-section (1), or
both.
(3) No person receiving any currency, whether Indian or foreign, from a
foreign source on behalf of any person or class of persons, referred to in
section 9, shall deliver such currency--
(a) to any person other than a person for which it was received, or
(b) to any other person, if he knows or has reasonable cause to believe
that such other person intends, or is likely, to deliver such currency
to a person other than the person for which such currency was
received.
Persons to whom section 3 shall not apply.
4. Nothing contained in section 3 shall apply to the acceptance, by any
person specified in that section, of any foreign contribution where such
contribution is accepted by him, subject to the provisions of section 10,--
(a) by way of salary, wages or other remuneration due to him or to any
group of persons working under him, from any foreign source or by
way of payment in the ordinary course of business transacted in
India by such foreign source; or
(b) by way of payment, in the course of international trade or commerce,
or in the ordinary course of business transacted by him outside
India; or
(c) as an agent of a foreign source in relation to any transaction made
by such foreign source with the Central Government or State
Government; or
(d) by way of a gift or presentation made to him as a member of any
Indian delegation, provided that such gift or present was accepted in
accordance with the rules made by the Central Government with
regard to the acceptance or retention of such gift or presentation; or
(e) from his relative; or
(f) by way of remittance received, in the ordinary course of business
through any official channel, post office, or any authorised person in
53
foreign exchange under the Foreign Exchange Management Act, 1999
(42 of 1999); or
(g) by way of any scholarship, stipend or any payment of like nature:
Provided that in case any foreign contribution received by any person
specified under section 3, for any of the purposes other than those specified
under this section, such contribution shall be deemed to have been accepted
in contravention of the provisions of section 3.
Procedure to notify an organisation of a political nature.
5. (1) The Central Government may, having regard to the activities of the
organisation or the ideology propagated by the organisation or the
programme of the organisation or the association of the organisations with
the activities of any political party, by an order published in the Official
Gazette, specify such organisation as an organisation of a political nature
not being a political party, referred to in clause (f) of sub-section (1) of
section 3 :
Provided that the Central Government may, by rules made by it, frame the
guidelines specifying the ground or grounds on which an organisation shall
be specified as an organisation of a political nature.
(2) Before making an order under sub-section (1), the Central Government
shall give the organisation in respect of whom the order is proposed to be
made, a notice in writing informing it of the ground or grounds, on which
it is proposed to be specified as an organisation of political nature under
that sub-section.
(3) The organisation to whom a notice has been served under sub-section
(2), may, within a period of thirty days from the date of the notice, make a
representation to the Central Government giving reasons for not specifying
such organisation as an organisation under sub-section (1):
Provided that the Central Government may entertain the representation
after the expiry of the said period of thirty days, if it is satisfied that the
organisation was prevented by sufficient cause from making the
representation within thirty days.
(4) The Central Government may, if it considers it appropriate, forward
the representation referred to in sub-section (3) to any authority to report
on such representation.
(5) The Central Government may, after considering the representation and
the report of the authority referred to in sub-section (4), specify such
organisation as an organisation of a political nature not being a political
party and make an order under sub-section (1) accordingly.
54
(6) Every order under sub-section (1) shall be made within a period of one
hundred and twenty days from the date of issue of notice under sub-
section (2):
Provided that in case no order is made within the said period of one hundred
and twenty days, the Central Government shall, after recording the reasons
therefor, make an order under sub-section (1) within a period of sixty days
from the expiry of the said period of one hundred and twenty days.
Restriction on acceptance of foreign hospitality.
6. No member of a Legislature or office-bearer of a political party or Judge
or Government servant or employee of any corporation or any other body
owned or controlled by the Government shall, while visiting any country
or territory outside India, accept, except with the prior permission of the
Central Government, any foreign hospitality:
Provided that it shall not be necessary to obtain any such permission for
an emergent medical aid needed on account of sudden illness contracted
during a visit outside India, but, where such foreign hospitality has been
received, the person receiving such hospitality shall give, within one month
from the date of receipt of such hospitality an intimation to the Central
Government as to the receipt of such hospitality, and the source from which,
and the manner in which, such hospitality was received by him.
Prohibition to transfer foreign contribution to other person.
7. No person who--
(a) is registered and granted a certificate or has obtained prior permission
under this Act; and
(b) receives any foreign contribution,
shall transfer such foreign contribution to any other person unless such
other person is also registered and had been granted the certificate or
obtained the prior permission under this Act :
Provided that such person may transfer, with the prior approval of the
Central Government, a part of such foreign contribution to any other person
who has not been granted a certificate or obtained permission under this
Act in accordance with the rules made by the Central Government.
Restriction to utilise foreign contribution for administrative purpose.
8. (1) Every person, who is registered and granted a certificate or given
prior permission under this Act and receives any foreign contribution,--
(a) shall utilise such contribution for the purposes for which the
contribution has been received:
55
Provided that any foreign contribution or any income arising out of
it shall not be used for speculative business :
Provided further that the Central Government shall, by rules, specify
the activities or business which shall be construed as speculative
business for the purpose of this section;
(b) shall not defray as far as possible such sum, not exceeding fifty per
cent of such contribution, received in a financial year, to meet
administrative expenses:
Provided that administrative expenses exceeding fifty per cent of such
contribution may be defrayed with prior approval of the Central
Government.
(2) The Central Government may prescribe the elements which shall be
included in the administrative expenses and the manner in which the
administrative expenses referred to in sub-section (1) shall be calculated.
Power of Central Government to prohibit receipt of foreign con-tribution,
etc., in certain cases.
9. The Central Government may--
(a) prohibit any person or organisation not specified in section 3, from
accepting any foreign contribution;
(b) require any person or class of persons, not specified in section 6, to
obtain prior permission of the Central Government before accepting
any foreign hospitality;
(c) require any person or class of persons not specified in section 11, to
furnish intimation within such time and in such manner as may be
prescribed as to the amount of any foreign contribution received by
such person or class of persons as the case may be, and the source
from which and the manner in which such contribution was received
and the purpose for which and the manner in which such foreign
contribution was utilised;
(d) without prejudice to the provisions of sub-section (1) of section 11,
require any person or class of persons specified in that sub-section
to obtain prior permission of the Central Government before
accepting any foreign contribution;
(e) require any person or class of persons, not specified in section 6, to
furnish intimation, within such time and in such manner as may be
prescribed, as to the receipt of any foreign hospitality, the source
from which and the manner in which such hospitality was received:
Provided that no such prohibition or requirement shall be made unless the
Central Government is satisfied that the acceptance of foreign contribution
56
by such person or class of persons, as the case may be, or the acceptance
of foreign hospitality by such person, is likely to affect prejudicially--
(i) the sovereignty and integrity of India; or
(ii) public interest; or
(iii) freedom or fairness of election to any Legislature; or
(iv) friendly relations with any foreign State; or
(v) harmony between religious, racial, social, linguistic or regional groups,
castes or communities.
Power to prohibit payment of currency received in contravention of the
Act.
10. Where the Central Government is satisfied, after making such inquiry
as it may deem fit, that any person has in his custody or control any article
or currency or security, whether Indian or foreign, which has been accepted
by such person in contravention of any of the provisions of this Act, it may,
by order in writing, prohibit such person from paying, delivering,
transferring or otherwise dealing with, in any manner whatsoever, such
article or currency or security save in accordance with the written orders
of the Central Government and a copy of such order shall be served upon
the person so prohibited in the prescribed manner, and thereupon the
provisions of sub-sections (2), (3), (4) and (5) of section 7 of the Unlawful
Activities (Prevention) Act, 1967 (37 of 1967) shall, so far as may be, apply
to, or in relation to, such article or currency or security and references in
the said sub-sections to moneys, securities or credits shall be construed as
references to such article or currency or security.
CHAPTER III
REGISTRATION
Registration of certain persons with Central Government.
11. (1) Save as otherwise provided in this Act, no person having a definite
cultural, economic, educational, religious or social programme shall accept
foreign contribution unless such person obtains a certificate of registration
from the Central Government:
Provided that any association registered with the Central Government
under section 6 or granted prior permission under that section of the
Foreign Contribution (Regulation) Act, 1976 (49 of 1976), as it stood
immediately before the commencement of this Act, shall be deemed to
have been registered or granted prior permission, as the case may be, under
this Act and such registration shall be valid for a period of five years from
the date on which this section comes into force.
57
(2) Every person referred to in sub-section (1) may, if it is not registered
with the Central Government under that sub-section, accept any foreign
contribution only after obtaining the prior permission of the Central
Government and such prior permission shall be valid for the specific
purpose for which it is obtained and from the specific source:
Provided that if the person referred to in sub-sections (1) and (2) has been
found guilty of violation of any of the provisions of this Act or the Foreign
Contribution (Regulation) Act, 1976 (49 of 1976), the unutilised or
unreceived amount of foreign contribution shall not be utilised or received,
as the case may be, without the prior approval of the Central Government.
(3) Notwithstanding anything contained in this Act, the Central Government
may, by notification in the Official Gazette, specify--
(i) the person or class of persons who shall obtain its prior permission
before accepting the foreign contribution; or
(ii) the area or areas in which the foreign contribution shall be accepted
and utilised with the prior permission of the Central Government;
(iii) the purpose or purposes for which the foreign contribution shall be
utilised with the prior permission of the Central Government; or
(iv) the source or sources from which the foreign contribution shall be
accepted with the prior permission of the Central Government.
Grant of certificate of registration.
12. (1) An application by a person, referred to in section 11 for grant of
certificate or giving prior permission, shall be made to the Central
Government in such form and manner and along with such fee, as may be
prescribed.
(2) On receipt of an application under sub-section (1), the Central
Government shall, by an order, if the application is not in the prescribed
form or does not contain any of the particulars specified in that form,
reject the application.
(3) If on receipt of an application for grant of certificate or giving prior
permission and after making such inquiry as the Central Government deems
fit, it is of the opinion that the conditions specified in sub-section (4) are
satisfied, it may, ordinarily within ninety days from the date of receipt of
application under sub-section (1), register such person and grant him a
certificate or give him prior permission, as the case may be, subject to
such terms and conditions as may be prescribed:
Provided that in case the Central Government does not grant, within the
said period of ninety days, a certificate or give prior permission, it shall
communicate the reasons therefor to the applicant:
58
Provided further that a person shall not be eligible for grant of certificate
or giving prior permission, if his certificate has been suspended and such
suspension of certificate continues on the date of making application.
(4) The following shall be the conditions for the purposes of sub-section (3),
namely:--
(a) the person making an application for registration or grant of prior
permission under sub-section (1),--
(i) is not fictitious or benami;
(ii) has not been prosecuted or convicted for indulging in activities
aimed at conversion through inducement or force, either
directly or indirectly, from one religious faith to another;
(iii) has not been prosecuted or convicted for creating communal
tension or disharmony in any specified district or any other
part of the country;
(iv) has not been found guilty of diversion or mis-utilisation of its
funds;
(v) is not engaged or likely to engage in propagation of sedition or
advocate violent methods to achieve its ends;
(vi) is not likely to use the foreign contribution for personal gains
or divert it for undesirable purposes;
(vii) has not contravened any of the provisions of this Act;
(viii) has not been prohibited from accepting foreign contribution;
(b) the person making an application for registration under sub-section
(1) has undertaken reasonable activity in its chosen field for the
benefit of the society for which the foreign contribution is proposed
to be utilised;
(c) the person making an application for giving prior permission under
sub--section (1) has prepared a reasonable project for the benefit of
the society for which the foreign contribution is proposed to be
utilised;
(d) in case the person being an individual, such individual has neither
been convicted under any law for the time being in force nor any
prosecution for any offence pending against him;
(e) in case the person being other than an individual, any of its directors
or office bearers has neither been convicted under any law for the
time being in force nor any prosecution for any offence is pending
against him;
(f) the acceptance of foreign contribution by the person referred to in
59
sub--section (1) is not likely to affect prejudicially--
(i) the sovereignty and integrity of India; or
(ii) the security, strategic, scientific or economic interest of the State;
or
(iii) the public interest; or
(iv) freedom or fairness of election to any Legislature; or
(v) friendly relation with any foreign State; or
(vi) harmony between religious, racial, social, linguistic, regional
groups, castes or communities;
(g) the acceptance of foreign contribution referred to in sub-section (1),--
(i) shall not lead to incitement of an offence;
(ii) shall not endanger the life or physical safety of any person.
(5) Where the Central Government refuses the grant of certificate or does
not give prior permission, it shall record in its order the reasons therefor
and furnish a copy thereof to the applicant:
Provided that the Central Government may not communicate the reasons
for refusal for grant of certificate or for not giving prior permission to the
applicant under this section in cases where there is no obligation to give
any information or documents or records or papers under the Right to
Information Act, 2005 (22 of 2005).
(6) The certificate granted under sub-section (3) shall be valid for a period
of five years and the prior permission shall be valid for the specific purpose
or specific amount of foreign contribution proposed to be received, as the
case may be.
Suspension of certificate.
13. (1) Where the Central Government, for reasons to be recorded in writing,
is satisfied that pending consideration of the question of cancelling the
certificate on any of the grounds mentioned in sub-section (1) of section
14, it is necessary so to do, it may, by order in writing, suspend the certificate
for such period not exceeding one hundred and eighty days as may be
specified in the order.
(2) Every person whose certificate has been suspended shall--
(a) not receive any foreign contribution during the period of suspension
of certificate:
Provided that the Central Government, on an application made by
such person, if it considers appropriate, allow receipt of any foreign
contribution by such person on such terms and conditions as it may
specify;
60
(b) utilise, in the prescribed manner, the foreign contribution in his
custody with the prior approval of the Central Government.
Cancellation of certificate.
14. (1) The Central Government may, if it is satisfied after making such
inquiry as it may deem fit, by an order, cancel the certificate if--
(a) the holder of the certificate has made a statement in, or in relation
to, the application for the grant of registration or renewal thereof,
which is incorrect or false; or
(b) the holder of the certificate has violated any of the terms and
conditions of the certificate or renewal thereof; or
(c) in the opinion of the Central Government, it is necessary in the public
interest to cancel the certificate; or
(d) the holder of certificate has violated any of the provisions of this Act
or rules or order made thereunder; or
(e) if the holder of the certificate has not been engaged in any reasonable
activity in its chosen field for the benefit of the society for two
consecutive years or has become defunct.
(2) No order of cancellation of certificate under this section shall be made
unless the person concerned has been given a reasonable opportunity of
being heard.
(3) Any person whose certificate has been cancelled under this section shall
not be eligible for registration or grant of prior permission for a
period of three years from the date of cancellation of such certificate.
Management of foreign con-tribution of person whose certificate has been
cancelled.
15. (1) The foreign contribution and assets created out of the foreign
contribution in the custody of every person whose certificate has been
cancelled under section 14 shall vest in such authority as may be prescribed.
(2) The authority referred to in sub-section (1) may, if it considers necessary
and in public interest, manage the activities of the person referred to in
that sub-section for such period and in such manner, as the Central
Government may direct and such authority may utilise the foreign
contribution or dispose of the assets created out of it in case adequate
funds are not available for running such activity.
(3) The authority referred to in sub-section (1) shall return the foreign
contribution and the assets vested upon it under that sub-section to the
person referred to in the said sub-section if such person is subsequently
registered under this Act.
61
Renewal of certificate.
16. (1) Every person who has been granted a certificate under section 12
shall have such certificate renewed within six months before the expiry of
the period of the certificate.
(2) The application for renewal of the certificate shall be made to the Central
Government in such form and manner and accompanied by such fee as
may be prescribed.
(3) The Central Government shall renew the certificate, ordinarily within
ninety days from the date of receipt of application for renewal of certificate,
subject to such terms and conditions as it may deem fit and grant a
certificate of renewal for a period of five years:
Provided that in case the Central Government does not renew the certificate
within the said period of ninety days, it shall communicate the reasons
therefor to the applicant:
Provided further that the Central Government may refuse to renew the
certificate in case where a person has violated any of the provisions of this
Act or rules made thereunder.
CHAPTER IV
ACCOUNTS, INTIMATION, AUDIT AND DISPOSAL OF ASSETS, ETC.
Foreign contribution through scheduled bank.
17. (1) Every person who has been granted a certificate or given prior
permission under section 12 shall receive foreign contribution in a single
account only through such one of the branches of a bank as he may specify
in his application for grant of certificate:
Provided that such person may open one or more accounts in one or more
banks for utilising the foreign contribution received by him:
Provided further that no funds other than foreign contribution shall be
received or deposited in such account or accounts.
(2) Every bank or authorised person in foreign exchange shall report to
such authority as may be specified--
(a) prescribed amount of foreign remittance;
(b) the source and manner in which the foreign remittance was received;
and
(c) other particulars,
in such form and manner as may be prescribed.
62
Intimation.
18. (1) Every person who has been granted a certificate or given prior
approval under this Act shall give, within such time and in such manner as
may be prescribed, an intimation to the Central Government, and such
other authority as may be specified by the Central Government, as to the
amount of each foreign contribution received by it, the source from which
and the manner in which such foreign contribution was received, and the
purposes for which, and the manner in which such foreign contribution
was utilised by him.
(2) Every person receiving foreign contribution shall submit a copy of a
statement indicating therein the particulars of foreign contribution received
duly certified by officer of the bank or authorised person in foreign
exchange and furnish the same to the Central Government along with the
intimation under sub-section (1).
Maintenance of accounts.
19. Every person who has been granted a certificate or given prior approval
under this Act shall maintain, in such form and manner as may be
prescribed,--
(a) an account of any foreign contribution received by him; and
(b) a record as to the manner in which such contribution has been utilised
by him.
Audit of accounts.
20. Where any person who has been granted a certificate or given prior
permission, fails to furnish any intimation under this Act within the time
specified therefor or the intimation so furnished is not in accordance with
law or if, after inspection of such intimation, the Central Government has
any reasonable cause to believe that any provision of this Act has been, or
is being, contravened, the Central Government may, by general or special
order, authorise such gazetted officer, holding a Group A post under the
Central Government or any other officer or authority or organisation, as it
may think fit, to audit any books of account kept or maintained by such
person and thereupon every such officer shall have the right to enter in or
upon any premises at any reasonable hour, before sunset and after sunrise,
for the purpose of auditing the said books of account:
Provided that any information obtained from such audit shall be kept
confidential and shall not be disclosed except for the purposes of this Act.
Intimation by candidate for election.
21. Every candidate for election, who had received any foreign contribution,
at any time within one hundred and eighty days immediately preceding
63
the date on which he is duly nominated as such candidate, shall give, within
such time and in such manner as may be prescribed, an intimation to the
Central Government or prescribed authority or both as to the amount of
foreign contribution received by him, the source from which, and the
manner in which, such foreign contribution was received and the purposes
for which and the manner in which such foreign contribution was utilised
by him.
Disposal of assets created out of foreign contribution.
22. Where any person who was permitted to accept foreign contribution
under this Act, ceases to exist or has become defunct, all the assets of such
person shall be disposed of in accordance with the provisions contained in
any law for the time being in force under which the person was registered
or incorporated, and in the absence of any such law, the Central
Government may, having regard to the nature of assets created out of
foreign contribution received under this Act, by notification, specify that
all such assets shall be disposed of by such authority, as it may specify, in
such manner and procedure as may be prescribed.
CHAPTER V
INSPECTION, SEARCH AND SEIZURE
Inspection of accounts or records.
23. If the Central Government has, for any reason, to be recorded in writing,
any ground to suspect that any provision of this Act has been or is being,
contravened by--
(a) any political party, or
(b) any person, or
(c) any organisation, or
(d) any association,
it may, by general or special order, authorise such gazetted officer, holding
a Group A post under the Central Government or such other officer or
authority or organisation, as it may think fit (hereinafter referred to as the
inspecting officer), to inspect any account or record maintained by such
political party, person, organisation or association, as the case may be, and
thereupon every such inspecting officer shall have the right to enter in or
upon any premises at any reasonable hour, before sunset and after sunrise,
for the purpose of inspecting the said account or record.
Seizure of accounts or records.
24. If, after inspection of an account or record referred to in section 23,
the inspecting officer has any reasonable cause to believe that any provision
64
of this Act or of any other law relating to foreign exchange has been, or is
being, contravened, he may seize such account or record and produce the
same before the court, authority or Tribunal in which any proceeding is
brought for such contravention:
Provided that the authorised officer shall return such account or record
to the person from whom it was seized if no proceeding is brought within
six months from the date of such seizure for the contravention disclosed
by such account or record.
Seizure of article or currency or security received in contravention of the
Act.
25. If any gazetted officer, authorised in this behalf by the Central
Government by general or special order, has any reason to believe that any
person has in his possession or control any article exceeding the value
specified in sub-clause (i) of clause (h) of sub-section (1) of section 2 or
currency or security whether Indian or foreign, in relation to which any
provision of this Act has been or is being, contravened, he may seize such
article or currency or security.
Disposal of seized article or currency or security.
26. (1) The Central Government, may, having regard to the value of article
or currency or security, their vulnerability to theft or any relevant consi-
deration, by notification, specify such article or currency or security which
shall, as soon as may be after their seizure, be disposed of by such officer
and in such manner, as the Central Government may, from time to time,
determine after following the procedure hereinafter specified.
(2) The article or currency or security seized shall be forwarded without
unnecessary delay to such officer as may be specified.
(3) Where any article or currency or security has been seized and forwarded
to such officer, the officer referred to in sub-section (1), shall prepare an
inventory of such article or currency or security containing such details
relating to their description, value or such other identifying parti-culars as
the officer referred to in that sub-section may consider relevant to the
identity of the article or the currency or security and make an application
to any Magistrate for the purposes of certifying the correctness of the
inventory so prepared.
(4) Where an application is made under sub-section (2), the Magistrate shall,
as soon as may be, allow the application.
(5) Notwithstanding anything contained in the Indian Evidence Act, 1872
(1 of 1872) or the Code of Criminal Procedure, 1973 (2 of 1974), every court
trying an offence under this Act, shall treat the inventory, as certified by
the Magistrate, as primary evidence in respect of such offence.
65
(6) Every officer acting under sub-section (3) shall forthwith report the
seizure to the Court of Session or Assistant Sessions Judge having
jurisdiction for adjudging the confiscation under section 29.
Seizure to be made in accor-dance with Act 2 of 1974.
27. The provisions of the Code of Criminal Procedure, 1973 shall apply
insofar as they are not inconsistent with the provisions of this Act to all
seizures made under this Act.
CHAPTER VI
ADJUDICATION
Confiscation of article or currency or security obtained in contravention
of the Act.
28. Any article or currency or security which is seized under section 25
shall be liable to confiscation if such article or currency or security has
been adjudged under section 29 to have been received or obtained in
contravention of this Act.
Adjudication of confiscation.
29. (1) Any confiscation referred to in section 28 may be adjudged--
(a) without limit, by the Court of Session within the local limits of whose
jurisdiction the seizure was made; and
(b) subject to such limits as may be prescribed, by such officer, not below
the rank of an Assistant Sessions Judge, as the Central Government
may, by notification in the Official Gazette, specify in this behalf.
(2) When an adjudication under sub-section (1) is concluded by the Court
of Session or Assistant Sessions Judge, as the case may be, the Sessions
Judge or Assistant Sessions Judge may make such order as he thinks fit
for the disposal by confiscation or delivery of seized article or currency or
security, as the case may be, to any person claiming to be entitled to
possession thereof or otherwise, or which has been used for the commission
of any offence under this Act.
Procedure for confiscation.
30. No order of adjudication of confiscation shall be made unless a
reasonable opportunity of making a representation against such
confiscation has been given to the person from whom any article or
currency or security has been seized.
CHAPTER VII
APPEAL AND REVISION
Appeal.
31. (1) Any person aggrieved bY ANY ORDER MADE UNDER SECTION 29 MAY
66
PREFER AN APPEAL,--
(a) where the order has been made by the Court of Session, to the High
Court to which such Court is subordinate; or
(b) where the order has been made by any officer specified under clause
(b) of sub-section (1) of section 29, to the Court of Session within the
local limits of whose jurisdiction such order of adjudication of
confiscation was made,
within one month from the date of communication to such person of the
order:
Provided that the appellate court may, if it is satisfied that the appellant
was prevented by sufficient cause from preferring the appeal within the
said period of one month, allow such appeal to be preferred within a further
period of one month, but not thereafter.
(2) Any organisation referred to in clause (f) of sub-section (1) of section 3,
or any person or association referred to in section 6 or section 9, aggrieved
by an order made in pursuance of section 5 or by an order of the Central
Government refusing to give permission under this Act, or by any order
made by the Central Government under sub-section (2) or sub-section (4)
of section 12, or sub-section (1) of section 14, as the case may be, may,
within sixty days from the date of such order, prefer an appeal against
such order to the High Court within the local limits of whose jurisdiction
the appellant ordinarily resides or carries on business or personally works
for gain, or, where the appellant is an organisation or association, the
principal office of such organisation or association is located.
(3) Every appeal preferred under this section shall be deemed to be an
appeal from an original decree and the provisions of Order XLI of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908), shall, as far as
may be, apply thereto as they apply to an appeal from an original decree.
Revision of orders by Central Government.
32. (1) The Central Government, may, either of its own motion or on an
application for revision by the person registered under this Act, call for
and examine the record of any proceeding under this Act in which any
such order has been passed by it and may make such inquiry or cause
such inquiry to be made and, subject to the provisions of this Act, may
pass such order thereon as it thinks fit.
(2) The Central Government shall not of its own motion revise any order
under this section if the order has been made more than one year pre-
viously.
(3) In the case of an application for revision under this section by the person
67
referred to in sub-section (1), the application must be made within one
year from the date on which the order in question was communicated to
him or the date on which he otherwise came to know of it, whichever is
earlier:
Provided that the Central Government may, if it is satisfied that such person
was prevented by sufficient cause from making the application within that
period, admit an application made after the expiry of that period.
(4) The Central Government shall not revise any order where an appeal
against the order lies but has not been made and the time within which
such appeal may be made has not expired or such person has not waived
his right of appeal or an appeal has been filed under this Act.
(5) Every application by such person for revision under this section shall
be accompanied by such fee, as may be prescribed.
Explanation.--An order by the Central Government declining to interfere
shall, for the purposes of this section, be deemed not to be an order
prejudicial to such person.
CHAPTER VIII
OFFENCES AND PENALTIES
Making of false statement, declaration or delivering false accounts.
33. Any person, subject to this Act, who knowingly,--
(a) gives false intimation under clause (c) of section 9 or section 18; or
(b) seeks prior permission or registration by means of fraud, false
representation or concealment of material fact,
shall, on conviction by a court, be liable to imprisonment for a term which
may extend to six months or with fine or with both.
Penalty for article or currency or security obtained in contravention of
section 10.
34. If any person, on whom any prohibitory order has been served under
section 10, pays, delivers, transfers or otherwise deals with, in any manner
whatsoever, any article or currency or security, whether Indian or foreign,
in contravention of such prohibitory order, he shall be punished with
imprisonment for a term which may extend to three years, or with fine, or
with both; and notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), the court trying such contravention may also
impose on the person convicted an additional fine equivalent to the market
value of the article or the amount of the currency or security in respect of
which the prohibitory order has been contravened by him or such part
thereof as the court may deem fit.
68
Punishment for contravention of any provi-sion of the Act.
35. Whoever accepts, or assists any person, political party or organisation
in accepting, any foreign contribution or any currency or security from a
foreign source, in contravention of any provision of this Act or any rule or
order made thereunder, shall be punished with imprisonment for a term
which may extend to five years, or with fine, or with both.
Power to impose addi-tional fine where article or currency or security is
not available for confiscation.
36. Notwithstanding anything contained in the Code of Criminal Procedure,
1973 (2 of 1974), the court trying a person, who, in relation to any article or
currency or security, whether Indian or foreign, does or omits to do any
act which act or omission would render such article or currency or security
liable to confiscation under this Act, may, in the event of the conviction of
such person for the act or omission aforesaid, impose on such person a
fine not exceeding five times the value of the article or currency or security
or one thousand rupees, whichever is more, if such article or currency or
security is not available for confiscation, and the fine so imposed shall be
in addition to any other fine which may be imposed on such person under
this Act.
Penalty for offences where no separate punishment has been provided.
37. Whoever fails to comply with any provision of this Act for which no
separate penalty has been provided in this Act shall be punished with
imprisonment for a term which may extend to one year, or with fine or
with both.
Prohibition of acceptance of foreign contribution.
38. Notwithstanding anything contained in this Act, whoever, having been
convicted of any offence under section 35 or section 37, insofar as such
offence relates to the acceptance or utilisation of foreign contribution, is
again convicted of such offence shall not accept any foreign contribution
for a period of five years from the date of the subsequent conviction.
Offences by companies.
39. (1) Where an offence under this Act or any rule or order made
thereunder has been committed by a company, every person who, at the
time the offence was committed, was in charge of, and was responsible to,
the company for the conduct of the business of the company, as well as
the company, shall be deemed to be guilty of the offence and shall be liable
to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render such person
liable to any punishment if he proves that the offence was committed
69
without his knowledge or that he had exercised all due diligence to prevent
the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act or any rule or order made thereunder has been
committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or other officer of
the company, such director, manager, secretary or other officer shall also
be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate and includes a firm, society,
trade union or other association of individuals; and
(b) "director", in relation to a firm, society, trade union or other
association of individuals, means a partner in the firm or a member
of the governing body of such society, trade union or other association
of individuals.
Bar on prosecution of offences under the Act.
40. No court shall take cognizance of any offence under this Act, except
with the previous sanction of the Central Government or any officer
authorised by that Government in this behalf.
Composition of certain offences.
41. (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), any offence punishable under this Act (whether
committed by an individual or association or any officer or employee
thereof), not being an offence punishable with imprisonment only, may,
before the institution of any prosecution, be compounded by such offi-
cers or authorities and for such sums as the Central Government may, by
notification in the Official Gazette, specify in this behalf.
(2) Nothing in sub-section (1) shall apply to an offence committed by an
individual or association or its officer or other employee within a period of
three years from the date on which a similar offence committed by it or
him was compounded under this section.
Explanation.--For the purposes of this section, any second or subsequent
offence committed after the expiry of a period of three years from the
date on which the offence was previously compounded, shall be deemed
to be a first offence.
(3) Every officer or authority referred to in sub-section (1) shall exercise
70
the powers to compound an offence, subject to the direction, control and
supervision of the Central Government.
(4) Every application for the compounding of an offence shall be made to
the officer or authority referred to in sub-section (1) in such form and
manner along with such fees as may be prescribed.
(5) Where any offence is compounded before the institution of any prose-
cution, no prosecution shall be instituted in relation to such offence, against
the offender in relation to whom the offence is so compounded.
(6) Every officer or authority referred to in sub-section (1) while dealing
with a proposal for the compounding of an offence for a default in
compliance with any provision of this Act which requires by an individual
or association or its officer or other employee to obtain permission or file
or register with, or deliver or send to, the Central Government or any pres-
cribed authority any return, account or other document, may, direct, by
order, if he or it thinks fit to do so, any individual or association or its
officer or other employee to file or register with, such return, account or
other document within such time as may be specified in the order.
CHAPTER IX
MISCELLANEOUS
Power to call for information or document.
42. Any inspecting officer referred to in section 23 who is authorised in
this behalf by the Central Government may, during the course of any ins-
pection of any account or record maintained by any political party, person,
organisation or association in connection with the contravention of any
provision of this Act,--
(a) call for information from any person for the purpose of satisfying
himself whether there has been any contravention of the provisions
of this Act or rule or order made thereunder;
(b) require any person to produce or deliver any document or thing
useful or relevant to such inspection;
(c) examine any person acquainted with the facts and circumstances of
the case related to the inspection.
Investigation into cases under the Act.
43. Notwithstanding anything contained in the Code of Criminal Procedure,
1973 (2 of 1974), any offence punishable under this Act may also be
investigated into by such authority as the Central Government may specify
in this behalf and the authority so specified shall have all the powers which
an officer-in-charge of a police station has while making an investigation
into a cognizable offence.
71
Returns by prescribed authority to Central Government.
44. The prescribed authority shall furnish to the Central Government at
such time and in such form and manner such returns and statements as
may be prescribed.
Protection of action taken in good faith.
45. No suit or other legal proceedings shall lie against the Central
Government or the authority referred to in section 44 or any of its officers
in respect of any loss or damage caused or likely to be caused by anything
which is in good faith done or intended to be done in pursuance of the
provisions of this Act or, any rule or order made thereunder.
Power of Central Government to give directions.
46. The Central Government may give such directions as it may deem
necessary to any other authority or any person or class of persons regarding
the carrying into execution of the provisions of this Act.
Delegation of powers.
47. The Central Government may, by notification, direct that any of its
powers or functions under this Act, except power to make rules under
section 48, shall, in relation to such matters and subject to such conditions,
if any, may be specified in the notification, be exercised or discharged also
by such authority as may be specified.
Power to make rules.
48. (1) The Central Government may, by notification, make rules for
carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely:--
(a) the value of the article which may be specified under sub-clause (i)
of clause (h) of sub-section (1) of section 2;
(b) the authority which may be specified under clause (p) of sub-section
(1) of section 2;
(c) acceptance or retention of gift or presentation under clause (d) of
section 4;
(d) guidelines specifying the ground or grounds on which an organisation
may be specified as an organisation of political nature under sub-
section (1) of section 5;
(e) the activities or business which shall be construed as speculative
business under the proviso to clause (a) of sub-section (1) of section 8;
72
(f) the elements and the manner in which the administrative expenses
shall be calculated under sub-section (2) of section 8;
(g) the time within which and the manner in which any person or class
of persons or an association may be required to furnish intimation
regarding the amount of foreign contribution received under clause
(c) of section 9;
(h) the time within which and the manner in which any person or class
of persons may be required to furnish intimation regarding foreign
hospitality under clause (e) of section 9;
(i) the manner in which the copy of the order of the Central Government
shall be served upon any person under section 10;
(j) the form and manner in which the application for grant of certificate
of registration or giving of prior permission under sub-section (1) of
section 12;
(k) the fee to be accompanied by the application under sub-section (1)
of section 12;
(l) the terms and conditions for granting a certificate or giving prior
permission under clause (g) of sub-section (4) of section 12;
(m) the manner of utilising the foreign contribution under clause (b) of
sub--section (2) of section 13;
(n) the authority with whom the foreign contribution to be vested under
sub--section (1) of section 15;
(o) the period within which and the manner in which the foreign
contribution shall be managed under sub-section (2) of section 15;
(p) the form and manner in which the application for a renewal of
certificate of registration shall be made under sub-section (2) of
section 16;
(q) the fee to be accompanied by the application for renewal of certificate
under sub-section (2) of section 16;
(r) the prescribed amount of foreign remittance, the form and manner
in which the foreign remittance received by every bank or authorised
person in foreign exchange which shall be reported under sub-section
(2) of section 17;
(s) the time within which and the manner in which the person who has
been granted certificate of registration or given prior permission
under this Act shall give intimation under section 18;
(t) the form and manner in which account of any foreign contribution
73
and the manner in which such contribution has been utilised shall
be maintained under section 19;
(u) the time within which and the manner in which a candidate for
election shall give intimation under section 21;
(v) the manner and procedure to be followed in disposing of the assets
under section 22;
(w) the limits subject to which any confiscation may be adjudged under
clause (b) of sub-section (1) of section 29;
(x) the fee to be accompanied along with every application for revision
under sub-section (5) of section 32;
(y) the form and manner for making of an application for compounding
of an offence and the fees therefor under sub-section (4) of section 41;
(z) the form and manner in which and the time within which returns
and statements to be furnished by the prescribed authority under
section 44;
(za) any other matter which is required to be, or may be prescribed.
Orders and rules to be laid before Parliament.
49. Every order made under section 5 and every rule made by the Central
Government under this Act shall be laid, as soon as may be after it is made,
before each House of Parliament while it is in session for a total period of
thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session imme-diately
following the session or the successive sessions aforesaid, both Houses
agree in making any modification in the order or rule or both Houses agree
that the order or rule should not be made, the order or rule shall thereafter
have effect only in such modified form or be of no effect, as the case may
be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that order or
rule.
Power to exempt in certain cases.
50. If the Central Government is of opinion that it is necessary or expedient
in the interests of the general public so to do, it may, by order and subject
to such conditions as may be specified in the order, exempt any person or
association or organisation (not being a political party), or any individual
(not being a candidate for election) from the operation of all or any of the
provisions of this Act and may, as often as may be necessary, revoke or
modify such order.
Act not to apply to certain Government transactions.
51. Nothing contained in this Act shall apply to any transaction between
74
the Government of India and the Government of any foreign country or
territory.
Application of other laws not barred.
52. The provisions of this Act shall be in addition to, and not in derogation
of, the provisions of any other law for the time being in force.
Power to remove difficulties.
53. (1) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order, published in the Official Gazette,
make such provisions not inconsistent with the provisions of this Act as
may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of
two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be
after it is made, before each House of Parliament.
Repeal and saving.
54. (1) The Foreign Contribution (Regulation) Act, 1976 (49 of 1976)
(hereafter referred to as the repealed Act) is hereby repealed.
(2) Notwithstanding such repeal,--
(a) anything done or any action taken or purported to have been done
or taken under the repealed Act shall, insofar as it is not inconsistent
with the provisions of this Act, be deemed to have been done or
taken under the corresponding provisions of this Act;
(b) any organisation of a political nature, not being a political party, to
whom the prior permission was granted under section 5 of the
repealed Act, shall continue to be the organisation of a political nature,
not being a political party, under clause (f) of sub--section (1) of
section 3 of this Act, till such permission is withdrawn by the Central
Government;
(c) permission to accept foreign hospitality granted under section 9 of
the repealed Act shall be deemed to be the permission granted under
section 6 of this Act until such permission is withdrawn by the Central
Government;
(d) any association prohibited from accepting any foreign contribution
under clause (a) of section 10 of the repealed Act, insofar as it is not
inconsistent with the provisions of this Act, shall be deemed to be an
association prohibited from accepting any foreign contribution under
section 9 of this Act;
(e) permission obtained under clause (b) of section 10 of the repealed
75
Act shall, insofar as it is not inconsistent with the provisions of this
Act, be deemed to be the permission until such permission is
withdrawn by the Central Government;
(f) any order issued under section 12 of the repealed Act shall be deemed
to be an order issued under section 10 of this Act;
(g) any order issued under section 31 of the repealed Act exempting any
association or any individual shall be deemed to be an order under
section 50 of this Act till such order is varied or revoked.
(3) Save as provided in sub-section (2), mention of particular matters in
that sub--section shall not be held to prejudice or affect the general
application of section 6 of the General Clauses Act, 1897 (10 of 1897), with
regard to the effect of repeal.
76
FOREIGN CONTRIBUTION
(REGULATION) RULES, 2011
G.S.R. 349(E), dated 29-4-2011 : In exercise of the powers conferred by
section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010),
the Central Government hereby makes the following rules, namely: --
Short title and commencement.
1. (1) These rules may be called the Foreign Contribution (Regulation) Rules,
2011.
(2) They shall come into force on the date on which the Foreign Contribution
(Regulation) Act, 2010 (42 of 2010) shall come into force.
Definitions.
2. (1) In these rules unless the context otherwise requires,--
(a) "Act" means the Foreign Contribution (Regulation) Act, 2010;
(b) "chartered accountant" shall have the meaning assigned to it in clause
(b) of sub-section (1) of section 2 of the Chartered Accountants Act,
1949;
(c) "Form" means a form appended to these rules;
(d) "section" means section of the Act;
(e) "year" means the financial year commencing from the 1st day of
April and ending on the 31st day of March of the next calendar year;
(2) Words and expressions used and not defined herein but defined in the
Act shall have the meaning assigned to them in the Act.
Guidelines for declaration of an organisation to be of a political nature,
not being a political party.
3. The Central Government may specify any organisation as organisation
of political nature on one or more of the following grounds:--
(i) organisation having avowed political objectives in its Memorandum
of Association or bylaws;
(ii) any Trade Union whose objectives include activities for promoting
political goals;
(iii) any voluntary action group with objectives of a political nature or
which participates in political activities;
77
(iv) front or mass organisations like Students Unions, Workers' Unions,
Youth Forums and Women's wing of a political party;
(v) organisation of farmers, workers, students, youth based on caste,
community, religion, language or otherwise, which is not directly
aligned to any political party, but whose objectives, as stated in the
Memorandum of Association, or activities gathered through other
material evidence, include steps towards advancement of political
interests of such groups;
(vi) any organisation, by whatever name called, which habitually engages
itself in or employs common methods of political action like `bandh'
or `hartal', `rasta roko', `rail roko' or `jail bharo' in support of public
causes.
Speculative activities.
4. (1) The following activities shall be treated as speculative activities:--
(a) any activity or investment that has an element of risk of appreciation
or depreciation of the original investment, linked to market forces,
including investment in mutual funds or in shares;
(b) participation in any scheme that promises high returns like
investment in chits or land or similar assets not directly linked to the
declared aims and objectives of the organisation or association.
(2) A debt-based secure investment shall not be treated as speculative
investment.
(3) Every association shall maintain a separate register of investments.
(4) Every register of investments maintained under sub-rule (3) shall be
submitted for audit.
Administrative expenses.
5. The following shall constitute administrative expenses:--
(i) salaries, wages, travel expenses or any remuneration realised by the
Members of the Executive Committee or Governing Council of the
person;
(ii) all expenses towards hiring of personnel for management of the
activities of the person & salaries, wages or any kind of remuneration
paid, including cost of travel, to such personnel;
(iii) all expenses related to consumables like electricity and water charges,
telephone charges, postal charges, repairs to premise(s) from where
the organisation or Association is functioning, stationery and printing
charges, transport and travel charges by the Members of the
78
Executive Committee or Governing Council and expenditure on office
equipment;
(iv) cost of accounting for and administering funds;
(v) expenses towards running and maintenance of vehicles;
(vi) cost of writing and filing reports;
(vii) legal and professional charges; and
(viii) rent of premises, repairs to premises and expenses on other utilities:
Provided that the expenditure incurred on salaries or remuneration
of personnel engaged in training or for collection or analysis of field
data of an association primarily engaged in research or training shall
not be counted towards administrative expenses:
Provided further that the expenses incurred directly in furtherance
of the stated objectives of the welfare oriented organisation shall be
excluded from the administrative expenses such as salaries to doctors
of hospital, salaries to teachers of school, etc.
Intimation of receiving foreign contribution from relatives.
6. Any person receiving foreign contribution in excess of one lakh rupees
or equivalent thereto in a financial year from any of his relatives shall
inform the Central Government in Form FC-1 within thirty days from the
date of receipt of such contribution.
When articles gifted for personal use do not amount to foreign contribution.
6A.* - Any article gifted to a person for his personal use whose market
value in India on the date of such gift does not exceed rupees twenty-five
thousand shall not be a foreign contribution within the meaning of sub-
clause (i) of clause (h) of sub-section (1) of section (2).
Receiving foreign hospitality by specified categories of persons.
7. (1) Any person belonging to any of the categories specified in section 6
who wishes to avail of foreign hospitality shall apply to the Central
Government in Form FC-2 for prior permission to accept such foreign
hospitality.
(2) Every application for acceptance of foreign hospitality shall be
accompanied by an invitation letter from the host or the host country, as
the case may be, and administrative clearance of the Ministry or department
concerned in case of visits sponsored by a Ministry or department of the
Government.
* Inserted vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292
(E) dated 12th April, 2012].
79
(3) The application for grant of permission to accept foreign hospitality
must reach the appropriate authority ordinarily two weeks before the
proposed date of onward journey.
(4) In case of emergent medical aid needed on account of sudden illness
during a visit abroad, the acceptance of foreign hospitality shall be required
to be intimated to the Central Government within sixty days of such receipt
giving full details including the source, approximate value in Indian Rupees,
and the purpose for which and the manner in which it was utilised:
Provided that no such intimation is required if the value of such hospitality
in emergent medical aid is upto one lakh rupees or equivalent thereto.
Action in respect of article, currency or security received in contravention
of the Act.
8. (1) The Central Government may issue a prohibitory order for
contravention of the Act in respect of any article, currency or securities.
(2) The prohibitory order issued under sub-rule (1) shall be served on the
person concerned in the following manner :--
(a) by delivering or tendering it to that person or to his duly authorised
agent; or
(b) by sending it to him by `registered post with acknowledgement due'
or `speed post' to the address of his last known place of residence or
the place where he carries on, or is known to have last carried on,
business or the place where he personally works for gain or is known
to have last worked for gain and, in case the person is an organisation
or an association, to the last known address of the office of such
organisation or association; or
(c) if it cannot be served in any of the manner aforesaid, by affixing it on
the outer door or some other conspicuous part of the premises in
which that person resides or carries on, or is known to have last
carried on, business or personally works for gain, or is known to have
last worked personally for gain and, in case the person is an organisation
or an association, on the outer door or some other conspicuous part
of the premises in which the office of that organisation or association
is located, or is known to have been last located, and the written
report whereof should be witnessed by at least two persons.
Application for obtaining `registration' or `prior permission' to receive
foreign contribution.
9. (1)(a) An application under sub-section (1) of section 11 for registration
of a person for acceptance of foreign contribution shall be made
electronically on-line in Form FC-3, and shall be followed by forwarding
80
the hard copy of the on-line application duly signed by the Chief Functionary
of the association together with the required documents.
(b) The hard copy of the on-line application referred in clause (a) shall
reach the Central Government within thirty days of the submission of the
on-line application, failing which the request of the person shall be deemed
to have ceased.
(c) Any person whose request has ceased under clause (b) of sub-rule (1)
may prefer a fresh on-line application with the Central Government only
after six months from the date of cessation of the previous application.
(d) A person seeking registration shall be required to open an exclusive
bank account to receive the foreign contribution.
(e) The person may open one or more accounts in one or more banks for
the purpose of utilising the foreign contribution after it has been received
and, in all such cases, intimation on plain paper shall be furnished to the
Secretary, Ministry of Home Affairs, New Delhi within fifteen days of the
opening of any account.
(2) (a) An application under sub-section (2) of section 11 for obtaining prior
permission of the Central Government to receive foreign contribution shall
be made electronically on-line in Form FC-4 and shall be followed by
forwarding the hard copy of the on-line application duly signed by the
Chief Functionary of the Association together with the required documents.
(b) The hard copy of the on-line application shall reach the Central
Government within thirty days of filing of the on-line application, failing
which the request of the person shall be deemed to have ceased.
(c) Any person whose request has ceased under clause (b) of sub-rule (2)
may prefer a fresh on-line application with the Central Government only
after six months from the date of cessation of the previous application.
(d) A person seeking prior permission under this rule shall be required to
open an exclusive bank account for the receipt of foreign contribution.
(e) A person seeking prior permission under this rule may open one or
more accounts in one or more banks for the purpose of utilising the foreign
contribution after it has been received and in all such cases intimation on
plain paper shall be furnished to the Secretary, Ministry of Home Affairs,
New Delhi within fifteen days of the opening of any account.
(3) No person shall prefer a second application for registration or prior
permission within a period of six months after submitting an application
either for the grant of prior permission for the same project or for
registration.
81
(4)(a) An application made for the grant of prior permission shall be
accompanied by a fee of `1000 (One Thousand only).
( b ) An application made for the grant of the registration shall be
accompanied by a fee of ` 2000 (Two Thousand only).
(c) The fee may be revised by the Central Government from time to time.
(d) The fee, as applicable, shall be remitted by demand draft or banker's
cheque in favour of the "Pay and Accounts Officer, Ministry of Home
Affairs", payable at New Delhi.
(5) Notwithstanding anything contained in sub-rules (1) to (4), every
application made for registration or prior permission under the Foreign
Contribution (Regulation) Act, 1976 (49 of 1976) but not disposed of before
the date of commencement of these rules shall be deemed to be an application
for registration or prior permission, as the case may be, under these rules,
subject to the condition that the applicant furnishes the prescribed fees for
such registration or prior permission, as the case may be.
Validity of certificate.
10. Every certificate of registration granted to a person under the Act shall
be valid for a period of five years from the date of its issue.
Maintenance of accounts.
11. Every person who has been granted registration or prior permission
under section 12 shall maintain a separate set of accounts and records,
exclusively, for the foreign contribution received and utilised.
Renewal of registration certificate.
12. (1) Every certificate of registration issued to a person shall be liable to
be renewed after the expiry of five years from the date of its issue on
proper application.
(2) Every person shall apply to the Central Government in Form FC-5, six
months before the date of expiry of the certificate of registration, for its
renewal.
(3) A person implementing an ongoing multi-year project shall apply for
renewal twelve months before the date of expiry of the certificate of
registration.
(4) An application made for renewal of the certificate of registration shall
be accompanied by a fee of ` 500 (Five Hundred only).
(5) The fee for renewal of the certificate of registration shall be remitted
by demand draft or banker's cheque in favour of the "Pay and Accounts
Officer, Ministry of Home Affairs", payable at New Delhi.
82
(6) In case no application for renewal of registration is received or such
application is not accompanied by the requisite fee, the validity of the
certificate of registration of such person shall be deemed to have ceased
from the date of completion of the period of five years from the date of the
grant of registration.
Illustration. - A certificate of registration granted on the 1st January, 2012
shall be valid till the 31st December, 2016. A request for renewal of the
registration certificate shall reach the Central Government, accompanied
by the requisite fee, by the 30th June, 2016. If no application is received or
is not accompanied by the renewal fee, the validity of the registration
certificate issued on the 1st January 2012 shall be deemed to have lapsed
with effect from the close of the day on 31st December, 2016.
(7) If the validity of the certificate of registration of a person has ceased in
accordance with the provisions of these rules, a fresh request for the grant
of a certificate of registration may be made by the person to the Central
Government as per the provisions of rule 9.
(8) In case a person provides sufficient grounds, in writing, explaining the
reasons for not submitting the certificate of registration for renewal within
the stipulated time, his application may be accepted for consideration along
with the requisite fee, but not later than four months after the expiry of
the original certificate of registration.
In the event of receipt of foreign contribution in excess of one crore rupees
in a financial year.
13. In case a person who has been granted a certificate of registration or
prior permission receives foreign contribution in excess of one crore rupees,
or equivalent thereto, in a financial year, he/it shall place the summary
data on receipts and utilisation of the foreign contribution pertaining to
the year of receipt as well as for one year thereafter in the public domain.
Besides, the Central Government shall also display or upload the summary
data of such persons on its website for information of the general public.
Extent of amount that can be utilised in case of suspension of the certificate
of registration.
14. The unspent amount that can be utilised in case of suspension of a
certificate of registration may be as under:--
(a) In case the certificate of registration is suspended under sub-section
(1) of section 13 of the Act, up to twenty-five per cent of the unutilised
amount may be spent, with the prior approval of the Central
Government, for the declared aims and objects for which the foreign
contribution was received.
83
(b) The remaining seventy-five per cent of the unutilised foreign
contribution shall be utilised only after revocation of suspension of
the certificate of registration.
Custody of foreign contribution in respect of a person whose certificate
has been cancelled.
15. (1) The amount of foreign contribution lying unutilised in the exclusive
foreign contribution bank account of a person whose certificate of
registration has been cancelled shall vest with the bank* concerned till the
Central Government issues further directions in the matter.
(2) If a person whose certificate of registration has been cancelled transfers/
has transferred the foreign contribution to any other person, the provisions
of sub-rule (1) of this rule shall apply to the person to whom the fund has
been transferred.
Reporting by banks of receipt of foreign contribution.
16. (1) Every bank shall send a report to the Central Government within
thirty days of any transaction in respect of receipt of foreign contribution
by any person who is required to obtain a certificate of registration or
prior permission under the Act, but who was not granted such certificate
or prior permission as on the date of receipt of such remittance.
(2) The report referred to in sub-rule (1) shall contain the following details:--
(a) Name and address of the donor.
(b) Name and address of the recipient.
(c) Account number.
(d) Name of the Bank and Branch.
(e) Amount of foreign contribution (in foreign currency as well as Indian
Rupees).
(f) Date of receipt.
(g) Manner of receipt of foreign contribution (cash/cheque/electronic
transfer etc.).
(3) The bank shall send a report to the Central Government within thirty
days from the date of such last transaction in respect of receipt of any
foreign contribution in excess of one crore rupees or equivalent thereto in
a single transaction or in transactions within a duration of thirty days, by
any person, whether registered or not under the Act and such report shall
include the following details:--
* For the words "banking authority", the word "bank" has been substituted vide the Foreign
Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292 (E) dated 12th April, 2012].
84
(a) Name and address of the donor.
(b) Name and address of the recipient.
(c) Account number.
(d) Name of the Bank and Branch.
(e) Amount of foreign contribution (in foreign currency as well as Indian
Rupees).
(f) Date of receipt.
(g) Manner of receipt of foreign contribution (cash/cheque/electronic
transfer etc.).
Intimation of foreign contribution by the recipient.
17. (1) Every person who receives foreign contribution under the Act shall
submit a report in Form FC-6, accompanied by an income and expenditure
statement, receipt and payment account, and balance sheet for every
financial year beginning on the 1st day of April within nine months of the
closure of the financial year, to the Secretary to the Government of India,
Ministry of Home Affairs, New Delhi.
(2) The annual return in Form FC-6 shall reflect the foreign contribution
received in the exclusive bank account and include the details in respect of
the funds transferred to other bank accounts for utilisation.
(3) If the foreign contribution relates only to articles, the intimation shall
be submitted in Form FC-7.
(4) If the foreign contribution relates to foreign securities, the intimation
shall be submitted in Form FC-8.
(5) Every report submitted under sub-rules (2) to (4) shall be duly certified
by a chartered accountant.
(6) Every such return in Form FC-6 shall also be accompanied by a copy of
a statement of account from the bank where the exclusive foreign
contribution account is maintained by the person, duly certified by an
officer of such bank.
(7) The accounting statements referred to above in the preceding sub-rule
shall be preserved by the person for a period of six years.
(8) A `NIL' report shall be furnished even if no foreign contribution is
received during a financial year.
Foreign contribution received by a candidate for election.
18. Foreign contribution received by a candidate for election, referred to
in section 21, shall be furnished in Form FC-9 within forty-five days from
the date on which he is duly nominated as a candidate for election.
85
Limit to which a judicial officer, not below the rank of an Assistant Sessions
Judge may make adjudication or order confiscation.
19. An officer referred in clause (b) of sub-section (1) of section 29 may
adjudge confiscation in relation to any article or currency seized under
section 25, if the value of such article or the amount of such currency
seized does not exceed ` 10,00,000 (Ten lakh only).
Revision.
20. An application for revision of an order passed by the competent
authority under section 32 of the Act shall be made to the Secretary, Ministry
of Home Affairs, Government of India, New Delhi on a plain paper. It shall
be accompanied by a fee of ` 1000 (One Thousand only) in the form of a
demand draft or a banker's cheque in favour of the "Pay and Accounts
Officer, Ministry of Home Affairs", payable at New Delhi.
Compounding of offence.
21. An application for the compounding of an offence under section 41
may be made to the Secretary, Ministry of Home Affairs, New Delhi on a
plain paper and shall be accompanied by a fee of ` 1000 (One Thousand
only) in the form of a demand draft or a banker's cheque in favour of the
"Pay and Accounts Officer, Ministry of Home Affairs", payable at New Delhi.
Returns by the Investigating Agency to the Central Government.
22. The Central Bureau of Investigation or any other Government
investigating agency that conducts any investigation under the Act shall
furnish reports to the Central Government, on a quarterly basis, indicating
the status of each case that was entrusted to it, including information
regarding the case number, date of registration, date of filing charge sheet,
court before which it has been filed, progress of trial, date of judgment
and the conclusion of each case.
Authority to whom an application or intimation to be sent.
23. Any information or intimation about political or speculative activities
of a person as mentioned in rule 3 or rule 4, shall be furnished to the
Secretary to the Government of India in the Ministry of Home Affairs,
New Delhi. Such information or intimation shall be sent by registered post.
Procedure for transferring foreign contribution to other registered or
unregistered persons.
24*. (1) A person who has been granted a certificate of registration or
prior permission under section 11 and intends to transfer part of the foreign
* Inserted vide the Foreign Contribution (Regulation) Amendment Rules, 2012 [G.S.R. 292
(E) dated 12th April, 2012].
86
contribution received by him to a person who has not been granted a
certificate of registration or prior permission under the Act, may transfer
such foreign contribution to an extent not exceeding ten per cent of the
total value thereof and for this purpose, make an application to the Central
Government in Form FC-10.
(2) Every application made under sub-rule (1) shall be accompanied by a
declaration to the effect that
(a) the amount proposed to be transferred during the financial year
is less than ten per cent of the total value of the foreign
contribution received by him during the financial year;
(b) the transferor shall not transfer any amount of foreign
contribution until the Central Government approves such
transfer.
(3) A person who has been granted a certificate of registration or prior
permission under section 11 shall not be required to seek the prior approval
of the Central Government for transferring the foreign contribution
received by him to another person who has been granted a certificate of
registration or prior permission under the Act provided that the recipient
has not been proceeded against under any of the provisions of the Act.
(4) Both the transferor and the recipient shall be responsible for ensuring
proper utilisation of the foreign contribution so transferred and such
transfer of foreign contribution shall be reflected in the returns in Form
FC-6 to be submitted by both the transferor and the recipient.
Sd/-
(G.V.V. SARMA)
Joint Secretary to the Government of India
87
NOTIFICATION REGARDING THE EFFECTIVE
DATE OF APPLICABILITY OF FCRA 2010
Published in the Gazette of India, Extraordinary--Part II, Section 3, Sub-
section (ii)
GOVERNMENT OF INDIA
MINISTRY OF HOME AFFAIRS
New Delhi, dated the 29th April, 2011
Notification
S.O. 909(E).- In exercise of the powers conferred by sub-section (3) of section
1 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central
Government hereby appoints the 1st day of May, 2011 as the date on which
the provisions of the said Act shall come into force.
Sd/-
(G.V.V. SARMA)
Joint Secretary to the Government of India
88
FOREIGN CONTRIBUTION (REGULATION)
AMENDMENT RULES, 2012
[PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF HOME AFFAIRS
New Delhi, the 12th April, 2012
NOTIFICATION
G.S.R. 292(E). In exercise of the powers conferred by section 48 of the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central
Government hereby makes the following rules further to amend the Foreign
Contribution (Regulation) Rules, 2011, namely:-
1. Short title and commencement.-
(1) These rules may be called the Foreign Contribution (Regulation)
Amendment Rules, 2012.
(2) They shall come into force on the date of their publication in the
Official Gazette.
2. In the Foreign Contribution (Regulation) Rules, 2011, (hereinafter
referred to as the principal rules), after rule 6, the following rule shall
be inserted, namely:-
"6A. When articles gifted for personal use do not amount to
foreign contribution.- Any article gifted to a person for his
personal use whose market value in India on the date of
such gift does not exceed rupees twenty-five thousand shall
not be a foreign contribution within the meaning of sub-
clause (i) of clause (h) of sub-section (1) of section (2)."
3. In the principal rules, in rule 15, in sub-rule (1), for the words "banking
authority", the word "bank" shall be substituted.
89
4. In the principal rules, for rule 24, the following rule shall be
substituted, namely:-
" 24. Procedure for transferring foreign contribution to any
unregistered person.-
(1) A person who has been granted a certificate of registration or
prior permission under section 11 and intends to transfer part
of the foreign contribution received by him to a person who has
not been granted a certificate of registration or prior permission
under the Act, may transfer such foreign contribution to an
extent not exceeding ten per cent of the total value thereof and
for this purpose, make an application to the Central Government
in Form FC-10.
(2) Every application made under sub-rule (1) shall be accompanied
by a declaration to the effect that
(a) the amount proposed to be transferred during the financial
year is less than ten per cent of the total value of the foreign
contribution received by him during the financial year;
(b) the transferor shall not transfer any amount of foreign
contribution until the Central Government approves such
transfer.
(3) A person who has been granted a certificate of registration or
prior permission under section 11 shall not be required to seek
the prior approval of the Central Government for transferring
the foreign contribution received by him to another person who
has been granted a certificate of registration or prior permission
under the Act provided that the recipient has not been proceeded
against under any of the provisions of the Act.
(4) Both the transferor and the recipient shall be responsible for
ensuring proper utilisation of the foreign contribution so
transferred and such transfer of foreign contribution shall be
reflected in the returns in Form FC-6 to be submitted by both
the transferor and the recipient.".
[File No. II/21022/10(1)/2010-FC-III]
Sd/-
(G.V.V. SARMA)
Joint Secretary to the Govt. of India
Foot Note: The principal rules were published vide Notification
No. GSR 349(E) dated the 29th April, 2011.
90
FORM FC-1
[See rule 6]
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001
Subject: Intimation to the Central Government of receipt of
foreign contribution by way of gift from relative:
1. Name of the recipient in full (in block letters):
2. Date of birth:
3. Name of Father/Husband:
4. Permanent address:
5. P.A.N. of the recipient in India:
6. Amount of foreign contribution received, if it exceeds ` 1 lakh or equivalent in
a financial year:
7. Amount and the number of the Bank Draft or telegraphic transfer or other
communication including the Bank Details:
8. Income-tax registration number of the relative abroad and the name of the
country of residence:
9. Name of the relative and relationship thereof, nationality and passport details:
DECLARATION
I hereby declare that the above particulars furnished by me are true and correct.
Place:
Date:
Signature of the applicant
(Name, in block letters)
91
FORM FC-2
[See rule 7(1)]
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001.
Subject: Application for seeking prior permission of the
Central Government to accept foreign hospitality:
[Note: For foreign hospitality availed in case of emergent medical aid situation, intima-
tion to be given on plain paper to the Secretary, Ministry of Home Affairs at the address
mentioned in FORM FC-2, within sixty days of such receipt of foreign hospitality.]
1. Name in full (block letters):
2. Date of Birth:
3. Name of father/husband:
4. Present address:
5. Permanent address:
6. Passport particulars (if already in possession):
7. Status:--
(a) Member of Legislature:
(b) Office bearer of a political party:
(c) Judge of Supreme Court/High Court:
(d) Government servant:
(e) Employee of a Company/Corporation:
(f) Any other person or class of persons not specified in section 6:
8. Names of countries/places to be visited with duration of stay:
9. The countries and places where foreign hospitality is to be accepted:
10. Duration and purpose of visit to the country(s)/place(s) mentioned in Column 9
with specific dates:
11. Particulars of host(s): --
(a) If an individual, his personal particulars including name, present address,
permanent address, nationality, profession:
(b) If an Organisation/Institution/Association/Trust/Foundation/Trade
Union etc., full particulars thereof including --
(i) Full name and complete address:
(ii) Address of Head office/Principal office:
92
(iii) Aims and Objects:
(iv) Particulars of important office bearers;
12. @Full particulars, as in Column 11(a) and (b) of the foreign source, in case the
actual source extending the hospitality is located in a country other than actually
proposed to be visited:
13. Nature and duration of foreign hospitality* proposed to be accepted with specific
dates and with specific details:
14. Nature of connection/dealing with the host and or foreign source extending the
hospitality:
15. Approximate expenditure to be incurred on hospitality:
16. Any other information of significance which the applicant may like to furnish:
DECLARATION
I hereby declare that the above particulars furnished by me are true and correct.
Place:
Date:
Signature of the applicant
(Name, in block letters)
@Delete if not applicable.
93
FORM FC-3
[See rule 9(1)(a)]
No. ................... Date ..................
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road, New Delhi - 110001.
Sub: Application for `registration' under section 11(1) of the Foreign Contribution
(Regulation) Act, 2010 for the acceptance of foreign contribution by an Association
having definite cultural, economic, educational, religious or social programme:
Sir,
I ........................................................... on behalf of the Association named hereafter apply for
registration of the Association under sub-section (1) of section 11 of the Act for the
acceptance of foreign contribution as per details given below:
1. (i) Name of the Association and its complete postal address:
(a) Name:
(b) Address:
Town/City:
District:
State:
Pin Code:
(c) Telephone No. of the Association (with STD code):
(d) Telephone No. (with STD code)/Mobile No. of the Chief Functionary:
(e) e-Mail address:
(ii) If the Association is a registered Trust or Society please indicate its:
(a) registration number:
(b) place of registration:
(c) date of registration:
(certified copy of the registration certificate to be attached).
(d) PAN No.:
(iii) Nature of Association:
(a) religious (b) cultural (c) economic (d) educational (e) social
Note: If a religious Association, state whether (a) Hindu (b) Sikh (c) Muslim
(d) Christian (e) Buddhist (f) Others.
(iv) Please indicate:
(a) Main aim(s) and object(s) of the Association (enclose a copy of the
94
Memorandum of Association and/or the Articles of Association, if appli-
cable);
(b) Main object(s) and definite programme(s) for which the foreign contribution is
to be accepted/utilised:
(v) Details of names and addresses of the members of the Executive Committee/
Governing Council etc. of the Association, starting with the Chief Functionary, in the
following table:
Sl. Name Name of Nationality Occupation Post held Relationship Address
No. father/ with address in the with other for
husband of place of Association Member(s) correspon-
work of the dence
(at the time Executive
of filing the Council/
application. Governing
Phone/ body
mobile No.
if available)
2. Enclosed/attached, fee of Rupees (in words) ................... only remitted by ...................
(name of Bank & branch) Demand Draft/Bankers Cheque No. ................... dated ...................
(in day/mm/year format)
3. Whether any Member of the Executive Committee/Governing Council etc. of the
Association, including the Chief Functionary has, in the discharge of his/her official
functions or private conduct:
(a) been convicted by any Court of law:
(b) a prosecution for any offence pending against him/her:
(c) been found guilty of diversion or mis-utilisation of funds of the Association or
any other Association in the past:
(d) has been prohibited from accepting foreign contribution:
(e) a Member or Chief Functionary of any other Association against whom an order
under section 13 or 14 of the Foreign Contribution (Regulation) Act, 2010 (42 of
2010) has been passed:
4. Whether the applicant Association:
(a) is a branch/unit/associate of foreign based organisation or another Association
already registered or granted prior permission under the Act. If so, name and
address of the parent organisation should be furnished:
(b) attracts section 10 of the Act, if so details of the order passed by the Central
Government under section 11(3) of the Act:
(c) has been directed in terms of section 9(d) of the Act to seek prior permission by
the Central Government. If so, the number and date of the relevant order:
(d) had earlier been proceeded against as per provision of the Foreign Contribution
(Regulation) Act, 1976 (49 of 1976):
95
5. Whether:
(i) (a) the association was granted prior permission to receive foreign contribution under
the Act or the Foreign Contribution (Regulation) Act, 1976 (49 of 1976) in the past. If so,
the Ministry of Home Affairs letter number with date granting such prior permission:
(b) the account of the receipt and utilisation of the foreign contribution received above
was sent to the Central Government in the prescribed Form. If so, the date of submission
of the accounts:
(ii) Whether:
(a) the Association has received foreign contribution without the prior permission
under the Act in the past. If so, full particulars of the foreign contribution
received along with complete address of the bank branch and bank account
number in which deposited should be furnished:
(b) said violation has been condoned by the Central Government:
(c) Association has been prohibited from accepting foreign contribution under the
Act:
6. Whether the Association is functioning as editor, owner, printer or publisher of a
publication required to be registered as "newspaper" under the Press and Registration
of Books Act, 1867 (25 of 1867). If so, the details there of:
7. Whether:
(i) the Association ever applied for registration under the Foreign Contribution
(Regulation) Act, 2010 (42 of 2010), and if so,
(a) the number & date of submission of application for registration:
(b) the number & date of the last communication, if any, received from the
Ministry:
(c) the registration was refused:
(d) the application for registration is still pending:
(ii) the Association ever applied for prior permission under the Foreign Contribution
(Regulation) Act, 2010 (42 of 2010), and if so,
(a) the number & date of submission of application for prior permission:
(b) the number & date of the last communication, if any, received from the
Ministry:
(c) the prior permission was refused:
(d) the application for prior permission is still pending:
(iii) the Association has close links with another Association, or its unit or branch
which has been,
(a) refused registration/prior permission under the Act:
(b) prohibited from accepting foreign contribution:
8. Details of:
(i) the activities of the Association during the past three years:
96
(ii) the audited statement of accounts of the Association for the past three years:
(iii) the area(s) of operation:
9. Whether the Association has been specified as an organisation of a political nature, not
being a political party, under section 5 of the Act. If so, the details of the notification
should be furnished:
10. Details of Bank:
(i) the name and address of the branch of the bank through which the foreign
contribution shall be received:
(ii) the account number in the said branch of the bank:
11. Whether the Organisation/Association has been blacklisted/debarred from receiv-
ing any aid and/or assistance by any other Ministry/Department of Central Government
and/or State Government or Statutory Authority, if so the details thereof:
12. Whether a recommendation certificate from any competent authority is attached,
(and if so, the details):
13. Any other information, which the Association may like to furnish:
Yours faithfully,
Signature of the Chief Functionary
[Name of the Chief Functionary in block letters]
(Seal of the Association)
Declaration and Undertaking
I hereby declare that the above particulars furnished by me are true and correct and
undertake to:
(i) to inform the Central Government (Ministry of Home Affairs) within thirty days,
if any change takes place in regard to the name of the Association, its address, its
registration, its nature, its aims and objects together with documentary evidence
effecting the change.
(ii) to obtain prior permission for change of Members of the Executive Committee/
Governing Council, if, at any point of time, such change causes replacement of
50% or more of such Members as were mentioned in the application no. ................
dated ............... for registration under the Foreign Contribution (Regulation) Act,
2010 (42 of 2010) and undertake further not to accept any foreign contribution
except with prior permission till the permission to replace the office-bearer(s) has
been granted.
(iii) not to change the Bank and/or branch of the Bank without prior permission of
the Central Government [the reason(s) for change of bank or branch of the bank
shall have to be relevant and justifiable] and,
Note: Proforma for change of Bank (or in the branch of the existing bank where
exclusive foreign account number is being maintained) or Bank account is
available in Ministry of Home Affairs website http://mha.nic.in/fcra.htm.
97
(iv) not to accept any foreign contribution unless either registration certificate, as
applied for hereinabove, or prior permission of the Central Government under
the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) is granted.
Place:
Date:
List of enclosures attached
With this application:
1.
2.
3.
Signature of the Chief Functionary
[Name of the Chief Functionary in block letters]
(Seal of the Organisation/Association)
Notes:-
1. Receipt of application for registration is not a commitment for grant of registra-
tion by the Central Government.
2. An incomplete application i.e., without necessary document(s)/detail(s)/
explanation(s) is liable to be rejected summarily.
3. In case the space against any column is insufficient, separate sheet should be
attached.
4. Please use BLOCK LETTERS.
5. The application should be signed by the Chief Functionary of the Association.
CERTIFICATE
Recommending grant of registration to receive foreign contribution under the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010)
This is to certify that the ............................... (Name of the Association) having its registered
office at ............................... (Address) has been engaged in undertaking welfare activities
in its chosen ............................... (Economic, Educational, Cultural, Religious or Social)@
field. Its aims and objects are to
The antecedents of the Association and the Member(s) of the Executive Committee /
Governing Council (including the Chief Functionary) have been verified and nothing
adverse has come to notice.
2. It has undertaken commendable welfare activities in the area and has incurred
substantial expenditure (excluding administrative expenditure) amounting to
` ............................... during the last three years on its chosen ............................... (Economic,
Educational, Cultural, Religious or Social) field of activity.
3. Grant of registration to the aforementioned Association to accept foreign contribu-
tion under the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) is recommended.
98
(Recommending Authority)**
(Seal of the Recommending Authority)
@
Strike out which is not applicable.
** (i) District Collector/District Magistrate
(ii) Ministry/Department of the State Government
(iii) Ministry/Department of the Central Government.
99
FORM FC-4
[See rule 9(2)(a)]
No. .................. Date ....................
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road, New Delhi - 110001.
Sub: Application for `prior permission' under sub-section (2) of section 11 of the Foreign
Contribution (Regulation) Act, 2010 (42 of 2010) for the acceptance of foreign contribution
by an Association having definite cultural, economic, educational, religious or social
programme:
Sir,
I ........................................................................................, as an individual*, Hindu Undivided Family/
association/company registered under section 25 of the Companies Act 1956 (1 of 1956),
furnish the following details and apply for prior permission of the Central Government
for the acceptance of foreign contribution under the proviso to sub-section (2) of section
11 of the Act:
1. (i) Name of the Association and its complete postal address:
(a) Name:
(b) Address:
Town/City:
District:
State:
Pin Code:
(c) Telephone No. of the Association (with STD code):
(d) Telephone no. (with STD code)/Mobile No. of the Chief Functionary:
(e) e-Mail address:
(ii) If the Association is a registered Trust or Society please indicate its:
(a) registration number:
(b) place of registration:
(c) date of registration:
(certified copy of the registration certificate to be attached).
(d) PAN No.:
(iii) Nature of Association:
(a) religious (b) cultural (c) economic (d) educational (e) social:
Note: If a religious Association, State whether (a) Hindu (b) Sikh (c) Muslim
(d) Christian (e) Buddhist (f) Others.
(iv) Please indicate:
(a) Main aim(s) and object(s) of the Association (enclose a copy of the
100
Memorandum of Association and/or the Articles of Association, if
applicable);
(b) Main object(s) and definite programme(s) for which the foreign
contribution is to be accepted/utilised:
(v) Details of names and addresses of the members of the Executive Committee/
Governing Council etc. of the Association, starting with the Chief Functionary, in
the following table:
Sl. Name Name of Nationality Occupation Post held Relationship Address
No. father/ with address in the with other for
husband of place of Association Member(s) correspon-
work of the dence
(at the time Executive
of filing the Council/
application. Governing
Phone/ body
mobile No.
if available.)
2. Details of Fee: An amount of ` ........................ (Rupees in words ............................) towards
obtaining prior permission for receipt of foreign contribution is remitted by way of
demand draft/bankers cheque drawn in favour of the "Pay" and Accounts Office,
Ministry of Home Affairs viz. DD No. ........................ dated ........................ Name of the Bank
........................
3. Whether any Member of the Executive Committee/Governing Council etc. of the
Association, including the Chief Functionary has, in the discharge of his/her official
functions or private conduct**:
(a) been convicted by any Court of law:
(b) a prosecution for any offence pending against him/her:
(c) been found guilty of diversion or mis-utilisation of funds of the Association or
any other Association in the past:
(d) has been prohibited from accepting foreign contribution:
4. Whether:
(i) the Association ever applied for registration under the FCRA, 1976 or Foreign
Contribution (Regulation) Act, 2010 (42 of 2010), and if so,
(a) the number and date of submission of application for registration:
(b) the number and date of the last communication, if any, received from the
Ministry:
(c) the registration was refused:
(d) the application for registration is still pending:
(ii) the Association ever applied for prior permission under the Foreign Contribution
(Regulation) Act, 2010 (42 of 2010), and if so, --
(a) the number and date of submission of application for prior permission:
101
(b) the number and date of the last communication, if any, received from the
Ministry:
(c) the prior permission was refused:
(d) the application for prior permission is still pending:
(iii) the Association has close links with another Association, or its unit or branch
which has been,
(a) refused registration/prior permission under the Act:
(b) prohibited from accepting foreign contribution:
5. Whether the applicant Association:
(a) is a branch/unit/associate of foreign based organisation or another Association
already registered or granted prior permission under the Act. If so, name and
address of the parent organisation should be furnished:
(b) attracts section 10 of the Act, if so details of the order passed by the Central
Government:
(c) attracts sub-section (3) of section 11 of the Act:
(d) has been directed in terms of clause (b) of section 9 of the Act to seek prior
permission by the Central Government. If so, the number and date of the relevant
order:
(e) had earlier been proceeded against as per the provisions of the Foreign
Contribution (Regulation) Act, 1976 (49 of 1976):
6. Whether:
(i) (a) the association was granted prior permission to receive foreign contribution
under the Act. If so, the Ministry of Home Affairs letter number with date
granting such prior permission:
(b) the account of the receipt and utilisation of the foreign contribution received
above was sent to the Central Government in the prescribed Form. The date of
submission of the accounts be indicated:
(ii) Whether:
(a) the Association has received foreign contribution without the prior permission
under the Act in the past. If so, full particulars of the foreign contribution
received along with complete address of the bank branch and bank account
number in which deposited should be furnished:
(b) said violation has been condoned by the Central Government:
7. I affirm that the applicant Association is not an owner, printer, publisher, editor of a
publication which is registered as "newspaper" under the Press and Registration of
Books Act, 1867 (25 of 1867).
8. I affirm that the applicant association is not engaged in the production or broadcast
of audio/visual news or current affairs programmes through any electronic mode, or
any other electronic form as defined in clause (r) of sub-section (1) of section 2 of the
Information Technology Act, 2000 (21 of 2000) or any other mode of mass communication.
102
9. I affirm that the Organisation/Association has not been blacklisted/debarred from
receiving any aid and/or assistance by any other Ministry/Department of Central and/
or State Government or Statutory Authority.
10. I am enclosing the documents showing the detailed activities of the association
during the past three years.
11. I am enclosing the copies of audited statement of accounts of the association for the
past three years duly certified by the Chartered Accountant.
12. Data on commitment receipt from donor:
(a) Nature (cash/kind) and value of the foreign contribution to be received:
(b) Purpose for which foreign contribution is proposed to be received and utilised
indicating the geographical area(s) to be covered:
(c) A copy of the latest commitment letter from the donor is furnished:
(d) A copy of the proposal/project which has been approved by the foreign source
for funding, including projected outlays, budget breakups is enclosed.
13. Details of Bank:
(i) Name and address of the branch of the bank through which the foreign
contribution is proposed to be received:
(ii) The account number in the said branch of the bank:
14. Details of foreign source/sources*** from which the foreign contribution is proposed
to be received:
(i) If an individual, the personal particulars including name, present address,
permanent address, nationality and profession:
(ii) If an organisation/institution/association/trust/trade union etc. full particulars
thereof, including
(a) Full name and complete address:
(b) Address of the Head Office/Principal Office
(c) Particulars of Chief Functionary and Important Office Bearers:
(iii) Whether the foreign source is a Government of a Foreign Country or agency
thereof, if so, give details:
Yours faithfully,
Signature of the Chief Functionary
[Name of the Chief Functionary in block letters]
(Seal of the Association)
Declaration and Undertaking
I hereby declare that the above particulars furnished by me are true and correct and
undertake to:
(i) to inform the Central Government (Ministry of Home Affairs) within thirty days,
if any change takes place in regard to the name of the Association, its address, its
103
registration, its nature, its aims and objects together with documentary evidence
effecting the change.
(ii) to intimate within thirty days regarding the change of Members of the Executive
Committee/Governing Council, if, at any point of time, such change causes
replacement of 50% or more of such Members as were mentioned in the
application No. ....................... dated ....................... for prior permission under the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010) and undertake further
not to accept any foreign contribution except with prior permission till the
permission to replace the office-bearer(s) has been granted.
(iii) not to change the Bank and/or branch of the Bank without prior permission of
the Central Government [the reason(s) for change of bank or branch of the bank
shall have to be relevant and justifiable] and,
Note: Proforma for change of Bank (or in the branch of the existing bank where
exclusive foreign account number is being maintained) or Bank account is
available in Ministry of Home Affairs website.
(iv) not to accept any foreign contribution unless either registration certificate or
prior permission of the Central Government under the Foreign Contribution
(Regulation) Act, 2010 (42 of 2010) is granted.
Place:
Date:
List of enclosures attached with this application:
1.
2.
3.
Signature of the Chief Functionary
[Name of the Chief Functionary in block letters]
(Seal of the Organisation/Association)
Instructions for filling up the form:
* Please strike off whichever is not applicable. The same instruction applies in respect of
choices provided elsewhere in this form.
** If any of the replies to the four parts in item 3 is "yes", then full details of the case
including the present status of the case must be given, if required on a separate page.
*** If the foreign contribution, whether currency or article, is to be received from any
person or association who has received the same as first, second or subsequent recipient,
particulars of such person or association should be given against column 11 above.
1. Receipt of application for prior permission is not a commitment for approval by
the Central Government.
2. An incomplete application i.e., without necessary document(s)/detail(s)/
explanation(s) is liable to be rejected summarily.
104
3. In case the space against any column is insufficient, separate sheet should be
attached.
4. Please use BLOCK LETTERS.
CERTIFICATE
Recommending grant of prior permission to receive foreign contribution under the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010)
This is to certify that the ....................... (Name of the Association) having its registered office
at ....................... (Address) has been engaged in undertaking welfare activities in its chosen
....................... (Economic, Educational, Cultural, Religious or Social)@ field. Its aims and
objects are to
The antecedents of the Association and the Member(s) of the Executive Committee/
Governing Council (including the Chief Functionary) has been verified and nothing
adverse have come to notice.
2. It has undertaken commendable welfare activities in the area and has incurred
substantial expenditure (excluding administrative expenditure) amounting to
` ....................... during the last three years on its chosen ....................... (Economic, Educational,
Cultural, Religious and Social) field of activity.
3. Grant of prior permission to the aforementioned Association to accept foreign
contribution under the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) is
recommended.
(Recommending Authority)**
(Seal of the Recommending Authority)
@
Strike out which is not applicable
** (i) District Collector/District Magistrate
(ii) Ministry/Department of the State Government
(iii) Ministry/Department of the Central Government.
105
FORM FC-5
[See rule 12(2)]
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road, New Delhi - 110001.
Sub: Application for seeking renewal of `registration certificate' under section 16(1) of
the Foreign Contribution (Regulation) Act, 2010 (42 of 2010). (Application for renewal to
be submitted six months before the date of expiry of the certificate of registration):
Dear Sir,
I ....................... , on behalf of the Association named hereafter apply for seeking renewal
of `registration certificate', as per details given below:
1. Name of the Association and its complete postal address.
(a) Name:
(b) Address:
Town/City:
District:
State:
Pin Code:
(c) Telephone No. of the Association (with STD code):
(d) Telephone No. (with STD code)/Mobile No. of the Chief Functionary:
(e) e-Mail address:
(f) Details of names and addresses of the members of the Executive Commit-
tee/Governing Council etc. of the Association, starting with the Chief
Functionary, in the following table:
Sl. Name Name of Nationality Occupation Post held Relationship Address
No. father/ with address in the with other for
husband of place of Association Member(s) correspon-
work of the dence
(at the time Executive
of filing the Council/
application. Governing
Phone/ body
Mobile No.
if any)
2. Nature of Association:
3. Registration number:
(a) Place of registration:
106
(b) Date of registration:
(c) Date of expiry:
(d) PAN No., if any
(certified copy of the registration certificate to be attached).
4. Foreign Contribution received, if any,
since its registration with yearly breakup:
5. Details of utilisation of funds:
6. Whether various provisions as stipulated in the Foreign Contribution (Regula-
tion) Act, 2010 (42 of 2010) adhered to:
7. Reasons for seeking renewal of certificate:
8. Details of Fee: An amount of ` ...................... (Rupees in words ......................) towards
renewal of registration is remitted by way of demand draft/bankers cheque
drawn in favour of "Pay" and Accounts Officer, Ministry of Home Affairs viz. DD/
Bankers Cheque No. ...................... dated ...................... Name of the Bank ......................
9. Whether the organisation/Association has been blacklisted/debarred from
receiving any aid and/or assistance by any other Ministry/Department of
Central and/or State Government or Statutory Authority. If so, the details
thereof:
10. Any other information which the Association may like to furnish:
I hereby declare that the information furnished above is true and correct.
Signature of the Chief Functionary
[Name of the Chief Functionary in block letters]
(Seal of the Association)
107
FORM FC-6
[See rule 17(1)]
The Secretary to the Government of India,
Ministry of Home Affairs,
Foreigners Division (FCRA Wing),
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road, New Delhi - 110001.
Subject: Account of Foreign Contribution for the year ending on the 31st March
1. Associations details:
(i) Name and address (in block letters):
(ii) Registration number and date [under the Foreign Contribution (Regula-
tion) Act, 2010] (42 of 2010):
(iii) Prior permission number and date, if (ii) above is not applicable:
(iv) Nature of the Association: (a) Cultural (b) Economic (c) Educational
(d) Religious (e) Social
(v) Denomination in case of religious Association: (a) Hindu (b) Sikh
(c) Muslim (d) Christian (e) Buddhist (f) Others:
2. (i) Total amount of foreign contribution received during the financial year:
(ii) Interest earned on the foreign contribution during the financial year -
(a) In the designated bank account:
(b) On investments made (Fixed Deposit Receipt etc.) during the year or in
the preceding years:
3. Purposes for which foreign contribution has been received and utilised:
(in Rupees)
S. No. Purpose Previous Receipt during the year Utilised Balance
Balance
As As Total Places with
first second/ addresses
recipient subse- of specific
quent activities
reci-
pient
In In In In In In 5+ In In In In
cash kind cash kind cash kind 6 + cash kind cash kind
(value) 7+ (value) (value)
8
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
1. Celebration of national events (Independence/Republic day)/festivals
etc.
2. Theatre/Films.
3. Maintenance of places of historical and cultural importance.
4. Preservation of ancient/tribal art forms.
5. Research.
108
6. Cultural shows.
7. Setting up and running handicraft centre/cottage and Khadi industry/
social forestry projects.
8. Animal husbandry projects.
9. Income generation projects/schemes.
10. Micro-finance projects, including setting up banking co-operatives and
self-help groups.
11. Agricultural activity.
12. Rural Development.
13. Construction and maintenance of school/college.
14. Construction and running of hostel for poor students.
15. Grant of stipend/scholarship/assistance in cash and kind to poor/deserv-
ing children.
16. Purchase and supply of educational material - books, notebooks etc.
17. Conducting adult literacy programmes.
18. Education/Schools for the mentally challenged.
19. Non-formal education projects/coaching classes.
20. Construction/Repair/Maintenance of places of worship.
21. Religious schools/education of priests and preachers.
22. Publication and distribution of religious literature.
23. Religious functions.
24. Maintenance of priests/preachers/other religious functionaries.
25. Construction/Running of hospital/dispensary/clinic.
26. Construction of community halls etc.
27. Construction and Management of old age home.
28. Welfare of the aged/widows.
29. Construction and Management of Orphanage.
30. Welfare of the orphans.
31. Construction and Management of dharamshala/shelter.
32. Holding of free medical/health/family welfare/immunization camps.
33. Supply of free medicine, and medical aid, including hearing aids, visual
aids, family planning aids etc.
34. Provision of aids such as Tricycles, calipers etc. to the handicapped.
35. Treatment/Rehabilitation of persons suffering from leprosy.
36. Treatment/Rehabilitation of drug addicts.
37. Welfare/Empowerment of women.
38. Welfare of children.
109
39. Provision of free clothing/food to the poor, needy and destitute.
40. Relief/Rehabilitation of victims of natural calamities.
41. Help to the victims of riots/other disturbances.
42. Digging of bore wells.
43. Sanitation including community toilets etc.
44. Vocational training - tailoring, motor repairs, computers etc.
45. Awareness Camp/Seminar/Workshop/Meeting/Conference.
46. Providing free legal aid/Running legal aid centre.
47. Holding sports meet.
48. Awareness about Acquired Immune Deficiency Syndrome (AIDS)/Treat-
ment and rehabilitation of persons affected by AIDS.
49. Welfare of the physically and mentally challenged.
50. Welfare of the Scheduled Castes.
51. Welfare of the Scheduled Tribes.
52. Welfare of the Other Backward Classes.
53. Environmental programs.
54. Survey for socio-economic and other welfare programs.
55. Establishment expenses -
(i) Asset building:
(a) Establishment of Corpus Fund, and
(b) Purchase of land:
(ii) Construction/Extension/Maintenance of office, administrative
and other buildings, salaries/honorarium:
(iii) Publication of newsletter/literature/books etc.:
(iv) Other expenses:
56. Activities other than those mentioned above (Furnish details).
Total
Caution: Submission of false information or concealment of material facts shall attract
the relevant provisions of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010),
warranting appropriate action.
4. Name and address of the designated branch of the Bank and account number (as
specified in the application for registration /prior permission or permitted by the Central
Government).
A/c No.: ...........................................................
Bank: ...........................................................
Branch: ...........................................................
Address: ...........................................................
5. Donor-wise receipt of foreign contribution:
110
Sl. No. Institutional/ Name(s) Purpose(s) Date & month Amount
individual/ & of receipt
other donors address(es)
1. 2. 3. 4. 5. 6.
(i) From institutional donors:
(ii) From individual donor(s), above Rupees One lakh:
(iii) From individual donor(s), below Rupees One lakh:
Total [(i)+(ii)+(iii)]:
Declaration
I hereby declare that the above particulars furnished by me are true and correct. I also
affirm that the foreign contribution has been utilised for the purpose(s) for which the
Association has been granted registration or prior permission by the Central Govern-
ment, to the best of my knowledge. I have not concealed or suppressed any fact.
Place:
Date:
Signature of the Chief Functionary
(Name of the Chief Functionary in block letters)
(Seal of the Association)
Certificate to be given by Chartered Accountant
I/We have audited the account of ................................... (name of Association and its full
address including State, District and Pin Code, if registered society, its registration
number and State of registration) for the year ending the 31st March ...................................
and examined all relevant books and vouchers and certify that according to the audited
account:
(i) The brought forward foreign contribution at the beginning of the year was
` ...................................;
(ii) Foreign contribution of/worth ` ................................... was received by the Asso-
ciation during the year;
(iii) The balance of unutilised foreign contribution with the Association at the end of
the, year ........................ was ` ........................;
(iv) Certified that the Association has maintained the accounts of foreign contribu-
tion and records relating thereto in the manner specified in section 19 of the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010) read with rule 17 of the
Foreign Contribution (Regulation) Rules, 2011.
(v) The information in this certificate and in the enclosed Balance Sheet and
statement of Receipt and Payment is correct as checked by me/us.
Place:
Date:
Signature of Chartered Accountant
(Seal, Address and Registration number)
111
FORM FC-7
[See rule 17(3)]
The Secretary to the Government of India,
Ministry of Home Affairs,
FCRA Wing/Foreigners Division,
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001
Subject: Intimation about Foreign Contribution (Articles) Account:
DESCRIPTION OF THE ARTICLE: .......................................
Receipt Utilisation/ Quantity
Disposal
Date Name Mode Pur- Quan- Approxi- Date of Date Name and Purpose Utilised Sold Other- If sold, Reference Ba-
and of re- pose tity mate intima- address of for by the wise then to entry lance
address ceipt of re- received value of tion the person which organi- trans- amount in the in
of the ceipt articles sent to to whom issued sation ferred for Foreign Stock
person re- the issued, or which Contri-
from ceived Central sold or other- sold bution
whom Govern- otherwise wise (Curren-
received ment transferred trans- cy)
ferred Account
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Declaration
I hereby declare that the above particulars furnished by me are true and correct.
Place : Signature of the Chief Functionary
Date : (Name of the Chief Functionary in block letters)
(Seal of the Association)
112
Certificate to be given by Chartered Accountant
I/We have audited the account of................................................ (name of Association and its
full address including State, District and Pin Code, if registered society, its registration
number and State of registration) for the year ending the 31st March ........................ and
examined all relevant books and vouchers and certify that according to the audited
account:
(i) the brought forward foreign contribution, in kind, at the beginning of the year
was ` ........................;
(ii) foreign contribution, in kind worth ` ........................ was received by the Association
during the year ........................;
(iii) (a) the balance of unutilised foreign contribution, in kind, with the Association
at the end of the year ........................ was worth ` ........................
(b) That the whole of foreign contribution received in kind has been utilised,
leaving no balance at the end of the financial year (strike out whichever is not
applicable)
(iv) Certified that the Association has maintained the accounts of foreign contribu-
tion and records relating thereto in the manner specified in section 19 of the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010) read with sub-rule (3)
of rule 17 of the Foreign Contribution (Regulation) Rules, 2011.
(v) The information in this certificate and in the enclosed Balance Sheet and
statement of Receipt and Payment is correct as checked by me/us.
Place:
Date:
Signature of Chartered Accountant
(Seal, Address and Registration number)
113
FORM FC-8
[See rule 17(4)]
The Secretary to the Government of India,
Ministry of Home Affairs,
FCRA Wing/Foreigners Division,
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001
Subject: Intimation about foreign contribution (securities) Account:
(Description to be provided in the existing format (old) - Rule 8(c), Foreign Contribution (Regulation) Rules, 1976 refers)
1. Name of Securities:
2. Nominal value of each security:
Date Name and Distinguish- Total of Total Particulars of Particulars Date Dividend or Dates up to
address of ing number securities nominal permission of the of interest which
the person of each value of Reserve Bank of intimation received dividend or
from whom security securities India to acquire or sent to the interest has
received to hold foreign Central been
securities Government received
1 2 3 4 5 6 7 8 9 10
114
DETAILS OF DIVIDENDS/INTEREST RECEIVED
Reference to Date Name and Total No. of Distinguish- Total Particulars of Particulars of Reference to the
the credit address of securities ing number amount for permission of intimation sent entry in the
entry in the the person sold/ of each which sold/ the RBI to to the Central Foreign
Foreign to whom transferred security transferred sell/transfer Government Contribution
Contribution sold/ transferred securities (Currency)
(Currency) transferred Account
Account
11 12 13 14 15 16 17 18 19
115
DECLARATION
I hereby declare that the above particulars furnished by me are true and correct.
Place:
Date:
Signature of the Chief Functionary
(Name of the Chief Functionary in block letters)
(Seal of the Association)
Certificate to be given by Chartered Accountant
I/We have audited the account of .................................................. (name of Association and its
full address including State, District and Pin Code, if registered society, its registration
number and State of registration) for the year ending the 31st March ......................... and
examined all relevant books and vouchers and certify that according to the audited
account:
(i) the brought forward investment(s) in securities at the beginning of the year was
` .........................;
(ii) that further investment(s) in securities worth ` ......................... was made by the
Association during the year .........................;
(iii) the total value of investment in securities made by the Association at the end of
the year ......................... was worth ` .........................
(iv) Certified that the Association has maintained the accounts of foreign contribu-
tion and records relating thereto in the manner specified in section 19 of the
Foreign Contribution (Regulation) Act, 2010 (42 of 2010) read with sub-rule (4)
of rule 17 of the Foreign Contribution (Regulation) Rules, 2011.
(v) The information in this certificate and in the enclosed Balance Sheet and
statement of Receipt and Payment is correct as checked by me/us.
Place:
Date:
Signature of Chartered Accountant
(Seal, Address and Registration number)
116
FORM FC-9
[See rule 18]
The Secretary to the Government of India,
Ministry of Home Affairs,
FCRA Wing/Foreigners Division,
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001
Subject: Intimation to the Central Government of Receipt of Foreign Contribution
received by a candidate for Election [section 21 of the Foreign Contribution (Regulation)
Act, 2010 (42 of 2010)]:
(Every Candidate for election shall intimate to the Central Government, within 45 days
from the date on which he is duly nominated as a candidate for election, the details of the
foreign contribution received by him, any time within 180 days immediately preceding
the date of his nomination, in Form FC-9)
1. Name in full (in block letters):
2. Date of birth:
3. Name of father:
4. Present Address:
5. Permanent Address:
6. Date on which duly nominated as a candidate for election to a Legislature and
particulars of Legislature: (See section 21 of the Act)
7. Full particulars of foreign contribution received within 180 days Immediately
preceding the date on which duly nominated as a candidate for election:
8. Nature (cash and/or kind) and full details of foreign contribution including
value:
9. The mode, channel of receipt:
10. Purpose for which contribution was received:
11. Particulars of the foreign source from which contribution received:
(a) If an individual, his personal particulars including name, present address,
permanent address, nationality, profession:
(b) If an Organisation/Institution/Association/Trust/Foundation/Trade
Union etc. full particulars thereof including:
(i) Full name and complete address.
(ii) Address of Head Office/Principal Office.
(iii) Aims and objects.
(iv) Particulars of important office bearers.
12. Nature of connection/dealings with the foreign source(s):
13. Details of actual utilisation of the contribution:
(a) Specific purposes for which utilised.
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(b) Full description of the manner in which utilised.
14. Any other information of significance which the applicant may like to furnish:
Declaration
I hereby declare that the above particulars furnished by me are true and correct.
Place:
Date:
Signature of the candidate
(Name, in block letters)
Certificate
Certified that the above declaration was signed by Smt/Shri/Ku. ..................................................
S/o ......................... resident of ......................... a candidate for election to (*) .........................
before me, on this date day of month & year.
Signature
(Name, in block letters)
Designation
(To be signed by a Group A Gazetted Officer** or, 1st Class Magistrate).
* Here specify `Legislature' as defined in section 21 of the Act.
** Of the State/Central Government.
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FORM FC-10
[See rule 24(1)]
The Secretary to the Government of India,
Ministry of Home Affairs,
FCRA Wing/Foreigners Division,
NDCC-II Building, 1st Floor, `A' Wing
Jai Singh Road,
New Delhi - 110001
Subject: Application for seeking permission for transfer of foreign contribution to other
unregistered persons:
Sir,
I ........................., on behalf of the Association named hereafter apply for seeking permission
of the Central Government under section 7(b) of Foreign Contribution (Regulation) Act,
2010 (42 of 2010) for transfer of foreign contribution to other unregistered persons, as
per details given below:
1. Details of the applicant/transferor association:
(a) Name:
(b) Address:
Town/City:
District:
State:
Pin Code:
(c) Telephone No. of the Association (with STD code):
(d) Telephone No. (with STD code) / Mobile No. of the Chief Functionary:
(e) e-Mail address:
(f) Registration certificate/Prior permission order details:
(i) Registration No. (Under FCRA):
(ii) If not registered under FCRA, prior permission order No. with
date:
(Certified copy of the registration certificate/prior permission order to be
attached)
2. Details of the recipient /transferee association:
(a) Name:
(b) Address:
Town/City:
District:
State:
Pin Code:
(c) Telephone No. of the Association (with STD code):
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(d) Telephone No. (with STD code)/Mobile No. of the Chief Functionary:
(e) e-Mail address
(i) Whether registered under the Foreign Contribution Regulation Act, 1976 (49 of
1976) : yes/no
(a) if yes, details thereof (registration No., date of registration):
(certified copy of the registration certificate to be attached)
(b) If no, furnish the details if it is registered under the Indian Trust Act, 1882
(2 of 1882) or the Societies Registration Act, 1860 (21 of 1860) or the
Companies Act, 1956 (1 of 1956).
(a) Registration number:
(b) Place of registration:
(c) Date of registration:
(certified copy of the registration certificate to be attached).
(d) PAN No., if any:
3. Amount of Foreign contribution to be transferred:
4. Mode of the proposed transfer of foreign contribution (cash/cheque/electronic
etc):
5. Bank details and account No., in which FC is proposed to be transferred:
(i) Account No.:
(ii) Name of the Bank:
(iii) Address:
6. Any other information which the Association may like to furnish:
I hereby declare that the information furnished above is true and correct.
Signature of the Chief Functionary
[Name of the Chief Functionary block letters]
(Seal of the Association)
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