Foreign Contribution Regulation Act, 1976 & 2010

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FCRA,1976 &2010:

Alan Jose Manuel, MSW FCRA,1976 &2010

What is FCRA:

Foreign Contribution Regulation Act (FCRA) is an act passed by Indian parliament in 1976 with the objective of regulating the acceptance and utilization of foreign financial assistance by organizations and individuals within the geographic area of India. The Act concentrate on the prevention of foreign money flow to the electoral politics, bureaucrats, judges and other persons holding public offices . The organizations can seek foreign contributions for the multifarious projects, which may be social, cultural, economic, educational and religious that can be obtained from Ministry of Home Affairs What is FCRA

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Definition of Foreign Contribution FCRA provides the systematic definition of foreign contribution . The statutory definition-Section 2(1)(h) of FCRA defines ‘Foreign Contribution’ as follows “ 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 and includes any foreign security as defined in clause (o) of section 2 of` the Foreign Exchange Management Act, 1999.

FCRA Registration Procedure :

FCRA in the section 6 provides that any organization with economic, religious, cultural, social and educational objectives can accept foreign contribution on two conditions: 1. It should be registered with Central Government 2. It should agree to carry out its foreign transactions trough one specific bank. FCRA Registration Procedure

Amendment in the year 2010 :

The Indian parliament passed the Foreign Contribution Regulation Act 2010 (FCRA 2010) on 19 th August 2010 as an amendment to FCRA 1976. The amended FCRA came into effect from May 1, 2011. Amendment in the year 2010


1. Short title and commencement. - (1) these rules may be called the Foreign Contribution (Regulation) Rules, 2011. Contribution (Regulation) Act, 2010 (42 of 2010) shall come into force . 2. Definitions 3. Guidelines for declaration of an organization to be of a political nature, not being a political party 4. Speculative activities 5. Administrative expenses Provisions

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6 . Intimation of receiving foreign contribution from relatives 7. Receiving foreign hospitality by specified categories of persons 8. Action in respect of article, currency or security received in contravention of the Act 9. Application for obtaining ‘registration’ or ‘prior permission’ to receive foreign contribution

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10. Validity of Certificate 11. Renewal of registration certificate 12. In the event of receipt of foreign contribution in excess of one crore rupees in a financial year . 13. Extent of amount to be utilized in case of suspension of certificate of registration 14. Custody of foreign contribution in respect of person whose certificate has been cancelled.

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15. Reporting by banks of receipt of foreign contribution 16. Intimation of foreign contribution by the recipient 17 . Foreign contribution received by a candidate for election 18 . Limit to which a judicial officer, not below the rank of an Assistant Sessions Judge may make adjudication or order confiscation 19. Revision

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20. Compounding of offence 21. Returns by authority to Central Government. 22 . Authority to whom an application or intimation to be sent 23. Procedure for transferring foreign contribution to other registered or unregistered persons. –


The Government should not forget the purpose for which this Act was enacted in the first place. The purpose as stated in the preamble of the Act was to install a mechanism to regulate receipt and utilization of foreign contribution CONCLUSION

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