49 OF [31st March, ] An Act to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain persons or associations. It may be pertinent to point out here that it was the Congress, under the stewardship of Manmohan Singh, that replaced the original FCRA, Interestingly, the FCRA law deemed Indian companies as “foreign” if overseas residents held more than 50 per cent of the shareholding.
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Salient Features of the Act Any 19776 granted prior permission or registered with the Central Government under Section 6 or under the repealed FCRA,shall be deemed to have been granted prior permission or registered, as the case may be, under FCRA, and such registration shall be valid for a period of five years from the date on which the new Act has come into force.
While the provisions of the repealed FCRA, have generally been retained, the FCRA, is an improvement over the repealed Act as more stringent provisions have been made in order to prevent fra of the foreign contribution received by the associations. Any organisation of a political nature and any association or company engaged in the production and broadcast of audio or audio visual news or current affairs programme have been placed in the category prohibited to accept foreign contribution.
A new provision has been introduced to the effect that no person who receives foreign contribution as per provisions of this Act, shall transfer to other person unless that person is also authorized to receive foreign contribution as per rules made by the Central Government.
However, administrative expenses exceeding fifty per cent of the contribution to be defrayed with the prior approval of the Central Government.
New provisions have been made for suspension as well as cancellation of registration granted for violation of the provisions of the Act. Such provisions did not exist in 9176 repealed Act. New provision has also been made for management of foreign contribution and assets created out of such contribution of persons whose certificates have been cancelled.
Under the repealed Act, there was no time limit regarding the validity of registration certificate granted to the associations etc. FCRA, provides that the certificate granted shall be valid for a period of fvra years and the prior permission shall be valid for the specific purpose or specific amount of foreign contribution for which permission fcta granted. Further, every person who has been 1967 a certificate shall renew it within six months before the expiry of the period of certificate.
No funds other than foreign contribution shall be deposited in the FC account to be separately maintained by the associations etc. Every bank shall report to such authority, as may be prescribed, the amount of foreign remittance received, sources fcea manner and other particulars. Provision has been made for inspection of accounts if the registered person or person to whom prior permission has been granted fails to furnish or the intimation given is not in accordance with law.
A new provision has been introduced to the effect that the assets of any person who has become defunct shall be disposed of in such manner as may be, specified by the Central Government.
A new provision has been introduced to the effect that any person, who knowingly gives false intimation and seeks prior permission or registration by means of fraud, false representation or concealment of material fact, shall, on conviction by Court, would be liable to imprisonment for a term which may extend to six months or fine or with both.
Any 11976 contravening the provisions of fcrs Act shall be punishable with imprisonment for a term which may extend to five years or with fine or with both. Salient Features of the Rules Guidelines for declaration of an organisation to be of a political nature, not being a political party have been prescribed.
Activities to be treated as speculative activities have been defined.
Foreign Contribution (Regulation) Act, 2010
Expenditure constituting ‘Administrative expenses’ has been clearly defined. Modalities for submission of application for obtaining registration or prior permission to receive foreign contribution have been given in detail in the Rules and Forms for filing the applications. The applications for obtaining registration or prior permission shall have to be made electronically on-line, and shall have to be followed by forwarding the hard copy of the on-line application, duly signed, together with the required documents within thirty days of the submission of the on-line application, failing which the request of the person shall be deemed to have ceased.
Any person whose request has ceased shall be able to prefer a fresh on-line application only after six months from the date of cessation of the previous application. No person would be permitted to 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 196 same project or for registration.
A new provision has fra made for submission application fee. The fee for obtaining registration or prior permission would be Rs. Applications made for registration or prior permission under the repealed FCRA, but not disposed of before the date of commencement of these rules dcra be deemed to be an application for registration or prior permission, as the case may be, under the new Rules, subject to the condition that the applicant furnishes the prescribed fees for such registration or prior permission, as the case may be.
political donations and the ghost of fcra
Every person who has been granted registration or prior permission shall maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilised. 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 and application for its renewal shall have to be made in the prescribed form accompanied by a fee of Rs.
A person implementing an ongoing multi-year project shall apply for renewal twelve months before the fcea of expiry of the certificate of registration.
In case no application for renewal of registration is received or fcta 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. 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 the Rules.
Besides, the Central Government shall also display or upload the summary data of such persons on its website for information of the general public. In case the certificate of registration is suspended under the relevant provisions 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.
The remaining seventy-five per cent of the unutilised foreign contribution shall be utilised only after revocation of suspension of the certificate of registration. 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 banking authority concerned till the Central Government issues further directions in the matter.
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 19766 obtain a certificate fvra 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.
The bank shall also send a report containing the above details fcda 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.
Every person who receives foreign contribution under the Act shall submit a report, duly certified by a chartered accountant, in the prescribed Form, 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.
Foreign Contribution (Regulation) Act, – Wikipedia
The annual return in the prescribed Form shall reflect the foreign contribution received in the exclusive bank account and include the fcrw in respect of the funds transferred to other bank accounts for utilisation. If the foreign contribution relates to articles or foreign securities, the intimation shall be submitted in the prescribed Forms.
Every such return in 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 fcrra, duly certified by an officer of such bank.
The accounting statements referred to above shall be preserved by the person for a period of six years. Foreign contribution received by a candidate for election, referred to in section 21, shall be furnished in the prescribed Form within forty-five days from the date on which he is duly nominated as a candidate for 1796.
An application for revision of an order passed by the competent authority under 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 Rs. The Central Bureau of Investigation or any other Government investigating agency that conducts any investigation under the Act shall furnish reports to dcra 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, vcra of filing charge sheet, court before which it has been filed, progress of 1967, date of judgment and the conclusion of each case.
Any information or intimation about political or speculative activities of a person 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. Any person intending to transfer the foreign contribution may make an application to the Central Government in the prescribed Form.
The Central Government may permit the transfer in respect of a person who has been granted the certificate of registration or prior permission under, in case the recipient person has not been proceeded against under any provision of the Act.
Any transfer of foreign contribution shall be reflected in the prescribed returns by the transferor and the recipient. In case the foreign contribution is proposed to be transferred to a person who has not been granted a certificate of registration or prior permission by the Central Government, the person concerned may apply for permission to the Central Government to transfer a part of the foreign contribution, not exceeding ten per cent, of the total value of the foreign contribution received.
The application shall be fca by the District Magistrate having jurisdiction in the place where the transferred funds are sought to be utilised. The District Magistrate concerned shall take an appropriate decision in the matter within sixty days of the receipt of such request from the person.
The donor shall not transfer any foreign contribution until the Central Government has approved the transfer.
However, the Act was to come fvra force on such date as the Central Government may, by notification in the Official Gazette appoint. Consequently, the earlier Act, viz.