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 Central Government may permit the transfer in respect of a person who has been granted the certificate of registration or prior permission under, in case the recipient person has not been proceeded against under any provision of the Act.
Salient Features of FCRA, Comes into Effect from May 1,
The ostensible justification given for the law was to curb foreign interference in domestic politics. Ensure that you furnish information exactly in the manner stated in the form. Officials said other firms, which were Indian subsidiaries of global giants, had also made donations to political fcda and these would have attracted the test of being illegal, if the amendment had not been brought. Many of the affected organisations were rights-based advocacy groups, with some involved in human rights work.
Such fvra did not exist in the repealed Act.
Retro rules make a comeback
It prohibits electoral candidates, political parties, judges, MPs and even cartoonists from accepting foreign contributions. Officials say the amendment had to be brought to give relief to the country’s two largest political parties from a legal tangle they had managed to walk into.
Foreign contribution received by a candidate for election, referred to in ffcra 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. 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 years; 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, 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 197 value, in India, of such article exceeds one thousand rupees; Currency, whether Indian or foreign; or, Foreign security as defined in fcga 2 i of the Gcra Exchange Regulation Act, It merely seeks to correct an anomaly,” said officials.
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 fra any sentencing in this case.
The return is to be submitted, in duplicate, in Form FC—3. Interestingly, the FCRA law deemed Indian companies as “foreign” if overseas residents held more than 50 per cent of the shareholding in such firms. ffra
Retro rules make a comeback
One cannot deny that corrupt NGOs exist, or that unscrupulous NGOs that receive foreign funds may serve as conduits for money laundering. Please fill the relevant application form with due care.
Fema Relating To Non-Residents. Foreign source means the government of any foreign country or territory or its agency; international agency; a foreign company; citizen of a foreign country. Please familiarise yourself with the provisions of the Foreign Contribution Regulation Act, and the Foreign Contribution Regulation Rules, before making an application. This mass cancellation of FCRA licences is not the first time that the legislation has been used thus.
With liberalisation which allowed foreign firms to own up to per cent in Indian companies, the FCRA had become a bit of a relic and its narrow definition of what constituted “foreign” even more so. Firstly, FCRA registration under the earlier law was permanent, but under the new one, it expired after five years, and had to be renewed afresh.
Views Read Edit View history. Copyright indialiaison, All right Reserved. Does all this mean that the FCRA should be repealed?
Time to repeal the FCRA
Additional 19976 for Rejection cfra Applications for Registration. 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. However, the Act was to come into force on such date as the Central Government may, by notification in the Official Gazette appoint.
However, administrative expenses exceeding fifty per cent of the contribution to be defrayed with the prior approval of the Central Government. 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.
This amendment fcrw introduced with retrospective effect — a brazen attempt to legitimise the FCRA violations of the two parties. Poll call in budget mix for farms Business. Yuvi auctioned for Rs 1 crore, but his work is priceless. The intimation is to be given in Form FC — 5. No funds other than foreign contribution shall be deposited in the FC account to be separately maintained by the associations etc.
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. 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.
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Printable version Jan 1, 3: The Indian state had no problem accepting contributions from foreign donors such as the World Bank or the International Monetary Fund. Further, every person who has been granted a certificate shall renew it within six months before the expiry of the period of certificate. The accounting statements referred to above shall be preserved by the person for a period of six years. 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.
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.