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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Chartered Accountants, before certifying the accounts of an association in form FC — 3, must ensure that they have been prepared in accordance with the provisions of the Foreign Contribution Regulation Act, and the Rules framed thereunder. With the state wooing foreign investment, Indian 1967, too, helped themselves to foreign funds.
Time to repeal the FCRA – The Hindu
It prohibits electoral candidates, political parties, judges, MPs and even cartoonists from accepting foreign contributions. Proper Filing of Application Please familiarise yourself with the provisions of the Foreign Contribution Regulation Act, and the Foreign Contribution Regulation Rules, before making an application. That means these NGOs can no longer receive funds from foreign donors. All grants and donations given in violation of FCRA will be condoned. As a result, any donation received from such a company was also treated as a foreign contribution.
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.
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.
Do not deposit any local funds in this bank account. Remember to enclose copies of the following documents with your application —. Charter for the Chartered Accountants Since the FCRA Act, is national security legislation; 1796 are required to exercise extreme care and caution in dealing with foreign contribution from the time of its receipt to its final utilization.
Foreign Contribution (Regulation) Act, 2010
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. There are very many cases of companies who have provided grant to various Indian organisations without FCRA registration or prior permission. 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.
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.
Amendment logic Legal authorities say this is technically correct as the law was in force in those years.
If yes, how then do we monitor the foreign funding of NGOs? 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. 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.
Retro rules make a comeback
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.
Such provisions did not exist in the repealed Act. 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 fcda 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. 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.
In case the certificate of registration is suspended under the relevant provisions the Act, dcra 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. A new provision has been made for submission application fee. The task force submitted its report to the Planning 1967 in September Please fill the relevant application form with due care. In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.
Of course, NGO funding needs to be regulated. 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 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. The return is to be submitted, in duplicate, in Form FC—3. 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 fcr the same at the appropriate place.
1967 did it do so against the Congress, which, as the leading Opposition party, did not think it appropriate to protest this flagrant flouting of a judicial directive.
This was the Cold War era, when both the Soviets and the Americans meddled in the internal affairs of post-colonial nations to secure their strategic interests. Foreign contribution means the donation, delivery or transfer, made by any gcra source of any. The charge was led by the U. The contributions covered the years from to For more details see rule 8 of the Foreign Contribution Regulation Rules, The provisions of the Foreign Contribution Regulation Act, regulate the receipt of foreign contribution in the country.