Amendment in the Foreign Contribution Regulation Act


New Delhi: The acceptance and utilization of foreign contribution is regulated under Foreign Contribution (Regulation) Act, 2010 (FCRA) and Foreign Contribution (Regulation) Rule, 2011 (FCRR) framed thereunder. They provide for procedure to grant registration and prior permission for receipt of foreign contribution and its utilization, maintenance of accounts, inspection of accounts of the association, etc. They also prescribe various offences and penalties that may be imposed, including suspension and cancellation of registration in case of violation of the provisions of FCRA and FCRR.

Action has been taken against NGOs only when instances of non- Governmental Organisations violating provisions of the FCRA and FCRR have come to Government’s notice. FCRA and FCRR came into force with effect from 01.05.2011. Since then, notices were issued to around 21,000 associations in 2011 and to 10,343 associations in 2014 for not filing annual returns continuously for three years. Consequently, registration of 4,138 associations was cancelled in July 2012 and of 10,117 in March 2015 after issue of Show Cause Notices to such associations and giving them adequate opportunity. After inspections and scrutiny of accounts, 15 cases were referred to CBI and 10 to State Police for further investigation and prosecution. Accounts of 23 associations have been frozen. 20 associations have been prohibited from receiving foreign contribution. In 2014, penalty amounting to Rs.5,20,82,031/- has been imposed on 341 associations for late/ non-submission of mandatory annual returns and of Rs. 51,99,526/- on 24 associations for receipt and utilization of foreign contribution without obtaining registration of prior permission under the FCRA.

There is no proposal to amend the Foreign Contribution Regulation Act, 2010.

This was stated by the Minister of State for Home Affairs, Shri Kiren Rijiju in a written reply to a question by Shri Anand Sharma in the Rajya Sabha today.


Source: PIB


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