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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The list is revealing: It embraced foreign fcda by opening up the economy in Two years ago, the Supreme Court struck down the appeals filed by the two political parties against the Delhi high court verdict.

Time to repeal the FCRA

Foreign Contribution Regulation Act, FCRA was enacted in the year with the prime fcr of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life.

Additional Grounds for Rejection of Applications for Registration. Foreign contribution cannot be accepted by a candidate for fvra correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; judge, government servant or employee of any corporation; member of any legislature; political party or office bearer thereof.

Such provisions did not exist in the repealed Act. Please fill the relevant application form with due care.

The District Magistrate fcar shall take an appropriate decision in the matter within sixty days of the receipt of such request from the person. It merely seeks to correct an anomaly,” said officials.

political donations and the ghost of fcra

However, this change apparently did not cover the years prior towhen the FCRA was in force. From Wikipedia, the free encyclopedia.

Institutionalising double standards Put simply, a political class that has no qualms taking money from foreign sources, that amended the FCRA to let itself off the hook for past violations, that opened the doors for all political parties to accept foreign funding, that paved the way for Indian businesses to access foreign capital, is now anxious to prevent CSOs from accessing foreign funds because some of them question its policies in a democratic battle to protect constitutional rights and entitlements.

Recently, another NGO Compassion International had to shut down India operations after the government refused permission to accept foreign funding. An association with a definite cultural, economic, educational, religious or social programme.

Any person contravening the provisions of the Act shall be punishable with imprisonment for a term which may extend to five years or with fine or with both.

Foreign contribution means the donation, delivery or transfer, made by any foreign source of any. Charter for the Chartered Accountants Since the FCRA Act, fvra national security legislation; NGOs are required to exercise extreme care and caution in dealing with foreign contribution from the time of its receipt to its final utilization.


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Contributions made by a citizen of India living in another country, from his personal savings, through the normal banking channels, is not treated as foreign contribution.

For more details see section 2 1 e of the Foreign Contribution Regulation Act, Any move to condone an act that was in contravention of the old law would require an amendment, even though it has been repealed.

Amendment logic Legal authorities say this is technically correct as the law was in force in those 197. Somewhere in the minutiae of the Finance Bill is hidden a paragraph which states: A new provision has been introduced to the effect that any person, fra 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.

Such information or intimation shall be sent by registered post. However, the Act was to come into force on such date as the Central Government may, by notification in the Official Gazette appoint. With the Lok Sabha passing the law without any debate, the legislators lost the opportunity to ask why a long dead act was being brought back to life. Activities to be treated as speculative activities fcar been defined. Some of the common grounds for rejection of applications are enlisted below as illustrations to bring in transparency and benefit the applicants in taking due care and caution:.

Types of Permission i Registration under section 6 1 a ; and, ii Prior permission under section 6 1A. Many of the affected organisations were rights-based advocacy groups, with some involved in human rights fcda. Applications made for registration or prior permission under the repealed FCRA, 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 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.

Fema Relating To Non-Residents. 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.

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. Maintenance of Accounts An association granted prior permission or registration under the Act must maintain a separate set of accounts and records exclusively for the foreign contribution received and utilised in the prescribed manner.

The Foreign Contribution Regulation Actwhich was enacted 42 years back, banned political parties from accepting donations from foreign firms, including Indian subsidiaries of foreign firms, unless prior permission had been taken for such donations.

December 27, 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 misutilisation of the foreign contribution received by the associations.


Who can Receive Foreign Contribution An association 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. The Indian state had no problem accepting contributions from foreign donors such as the World Bank or the International Monetary Fund.

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. Expenditure constituting ‘Administrative expenses’ has been clearly defined.

Clause of Finance Bill amends Section of the Finance Act, to regularise all donations made by “foreign” firms: The organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may either obtain registration or prior permission to receive foreign contribution from Ministry of Home Affairs by making application in the prescribed format and furnishing details of the activities and audited accounts.

Foreign Contribution (Regulation) Act, – Wikipedia

The intimation is fcda be given in Form FC — 5. 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.

Access to resources, particularly foreign funding, is part of the right to freedom of association.

Of course, NGO funding needs fcrq be regulated. 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.

In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised. 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 election.

It shall be accompanied by fccra fee of Rs. Ensure that you furnish information exactly in the fcda stated in the form.

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 vcra which the foreign contribution was received.