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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An association with a definite cultural, economic, educational, religious or social programme. The focus of this Act is to ensure that the foreign contribution and foreign hospitality is not fcar to affect or influence electoral politics, public servants, judges and other people working the important areas of national life like journalists, printers and publishers of newspapers, etc.

Foreign source means the government of any foreign country or territory or its agency; international agency; a foreign company; citizen of a foreign country.

Under fcda repealed Act, there was no time limit regarding the validity of registration certificate granted to the associations etc.

Salient Features of FCRA, Comes into Effect from May 1,

Recently, another NGO Compassion International had to shut down India operations after the government refused fxra to accept foreign funding.

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 Act also seeks to regulate flow of foreign funds to voluntary organizations with objective of preventing any possible diversion of such funds towards activities detrimental to the national interest and to ensure that such individuals and organizations may function in a manner consistent with the values of vcra democratic republic.

Fema Relating To Non-Residents. The Indian state had no problem accepting contributions from foreign donors dcra as the World Bank or the International Monetary Fund. 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.

Please use the correct and current form. Consequently, the earlier Act, viz. Foreign Contribution Regulation 1967, FCRA was enacted in the year with the prime objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life.

Does all this fcar that the FCRA should be repealed? Open a separate bank account for ffcra receipt and utilisation of foreign contribution in a bank of your choice and furnish particulars of the same at the appropriate place.

Copyright indialiaison, All right Reserved. 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 person, duly certified by an officer of such bank.


Time to repeal the FCRA

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 fdra grant of prior permission for the same project or for registration.

It is advisable to obtain the passport details of the concerned citizen of India before accepting such contributions. 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. The fee for obtaining registration or prior permission would be Rs. The accounting statements referred to above shall be preserved by the person for a period of fcr years.

One cannot deny that corrupt NGOs exist, or that unscrupulous NGOs that receive foreign funds may serve as conduits for money laundering. Salient Features of the Act Any association 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.

Swing time in stocks Business. The implication of the judgment, which asked the government to “take action as contemplated by law”, was that the two political parties could face action for violating the FCRA and FCRA acts.

Fcrz, the new law put a restriction 50 per cent on the fcr of foreign 1967 that could be used for administrative expenses, thereby allowing the government to control how a civil society organisation CSO spends its money. FCRA, provides that the certificate granted shall be valid for a period of five years and the prior fcfa shall be valid for the specific purpose or specific amount of foreign contribution for which permission was granted.

Forms Prescribed for this Purpose An application for seeking prior permission to accept foreign contribution is to be made in Form FC — 1A and for grant of registration in Form FC — 8 respectively. Copy of certificate of registration issued under the Societies Registration Act, or Trust deed, as the case may be; Details of activities during the last three fccra Copies of audited statement of accounts for the past three years Asset and Liabilities, Receipt and Payment, Income and Expenditure ; If any printed work is brought out by the association, a certificate from the Press Registrar that the publication is not a newspaper in terms of section 1 1 of the Press Registration of Books Act, However, such organizations which are newly established and do not have proven track record of functioning may also receive foreign contribution for specific activities, for a specific purpose and from a specific source after seeking project based 11976 permission PP from the Ministry of Home Affairs.

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. To answer that question, we need to consider the differences between the two legislations.


But its decision has drawn criticism from different fcar. For more details see rule 8 of the Foreign Contribution Regulation Rules, December 27, It ordered the government and the Election Commission to take action against both the parties.

New provisions have been made for suspension as well as cancellation of registration granted for violation of the provisions of the Act. It was never heard of again. However, administrative expenses exceeding fifty per cent of the contribution to be defrayed with the prior approval of the Central Government.

Time Taken to Dispose Application An application for registration is normally disposed within six months. Fcrx article may need to be rewritten entirely to comply with Wikipedia’s quality standards.

This mass cancellation of FCRA licences is not the first time that the legislation has been used thus. Filing of Returns An association permitted to accept foreign contribution is required to submit an annual return, duly certifed by a Chartered Accountant, giving details of the receipt and purpose-wise utilization of the foreign contribution.

It embraced foreign funding by opening up the economy in Retrieved from ” https: The annual return in the prescribed Form 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. The two subsidiaries were Sterlite Industries India and Sesa Goa, companies registered in India whose controlling shareholder was London-listed Vedanta.

Poll call in budget mix for farms Business. 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 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.

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However, this change apparently did not cover the years prior towhen the FCRA was in force. The application shall be countersigned by the District Magistrate having jurisdiction in the place where the transferred funds are sought to be utilised. By fcda this site, you agree to the Terms of Cfra and Privacy Policy.

Types of Permission i Registration under section 6 1 a ; and, ii Prior permission under section 6 1A. Two years ago, the Supreme Court struck down the appeals filed by the two political parties against the Delhi high court verdict. The contributions covered the years from to