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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For more details fcta section 2 1 e of the Foreign Contribution Regulation Act, Such information or intimation shall be sent by registered post.
An association granted prior permission or registration under the Act must maintain fcrq separate set of accounts and records exclusively for the foreign contribution received and utilised in the prescribed manner. It prohibits electoral candidates, political parties, judges, MPs and even cartoonists from accepting foreign contributions. Any person intending to transfer the foreign contribution may make an application to the Central Government in the prescribed Form.
The return ffra to be submitted, in duplicate, in Form FC—3. FCRA, provides that the certificate granted 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 for which permission was granted.
That means these NGOs can no longer receive funds from foreign donors.
The intimation is to be given in Form FC — 5. What is Foreign Contribution Foreign contribution means the donation, delivery or transfer, made by any foreign source of any, Article, not given to a person as a gifitfor personal use, if the market value, in India, of such article exceeds one thousand rupees; Currency, whether Indian or foreign; or, Foreign security as defined in clause 2 i of the Foreign Exchange Regulation Act, New provisions have been made for suspension as well as cancellation of registration granted for violation of the provisions of the Act.
It is to be accompanied with the balance sheet and statement of receipt and payment, duly certifed by a Chartered Accountant, also in duplicate. 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.
While the provisions of the repealed FCRA, have generally been retained, the FCRA, is an improvement over the repealed Act as more stringent provisions have been made in order to prevent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.
Time to repeal the FCRA
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.
December 27, 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.
The application shall be countersigned by the District Magistrate having jurisdiction in the place where the transferred funds are sought to be utilised. As a result, any donation received from such a company was also treated as a foreign contribution.
Foreign Contribution (Regulation) Act, – Wikipedia
An Act to consolidate the law to regulate fcr 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.
Ensure that you furnish information exactly in the manner stated in the form. With the state wooing foreign investment, Indian businesses, too, helped themselves to foreign funds. However, the old law as well as its successor – the FCRA – continued to define as “foreign” contribution any donation made by a firm which had more than 50 per cent foreign-owned shareholding.
It shall be accompanied by a fee of Rs. Foreign source means the government of any foreign country or territory or its agency; international agency; a foreign company; citizen of a foreign country. The District Magistrate concerned shall take an appropriate decision in the matter within sixty days of the receipt of such request from fca person.
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. Printable version Jan 1, 3: Some of the common grounds for rejection of applications are enlisted below as fcraa to bring in transparency and benefit the applicants in taking due care and caution: Designated Bank Account An association granted 19776 permission or registration under the Act can receive the foreign contribution and subsequently utilise it using a single designated bank account, as intimated in the application form.
An application for revision of an order passed by the competent authority under the Fcr shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper. This instantly hands the state a whip with which to bring errant organisations to heel.
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. The donor shall not transfer any foreign contribution until the Central Government has approved the transfer. 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.
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.
Essential Requirements A Bank Account Open a separate bank account for the receipt and utilisation of foreign contribution in a bank of your choice and furnish particulars of the same at the appropriate place. Officials said other firms, which were Indian subsidiaries of global giants, had also made donations to political parties and these would have attracted the test of being illegal, if the amendment had not been brought.
The Foreign Contribution Regulation Rules contain the various forms prescribed for this purpose. Open a separate bank account for the receipt and utilisation of foreign contribution in a bank of your choice and furnish particulars of the same at the appropriate place. Foreign contribution cannot be accepted by a candidate for election; 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.
This amendment has also opened the doors for all political parties to accept funding from foreign companies, so long as it is channelled through an Indian subsidiary.
An association granted prior permission or registration under the Act can receive the foreign contribution and subsequently utilise it using a single designated bank account, as intimated in the application form. Dipak Bhatacharya, advocate and senior partner in Tottenham India Law Associates, said, “The retrospective amendments to FCRA seem to have been brought clearly to allow political parties to evade any sentencing in this case.
The ostensible justification given for the law was to curb foreign interference in domestic politics. 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.
This amendment was introduced with retrospective effect — a brazen attempt to legitimise the FCRA violations of the two parties. 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.
Views Read Edit View history. 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. 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.
Do not deposit any local funds, other than the essential initial deposit specified by the bank for opening an account, in this account. In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.