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 focus of this Act is to ensure that the foreign contribution and foreign hospitality is not utilized to affect or influence electoral politics, public servants, judges and other people working the important areas of national life like journalists, printers and publishers of newspapers, etc.
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.
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. Some of the common grounds for rejection of applications are enlisted below as illustrations to bring in transparency and benefit ffcra applicants in taking due care and caution:.
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.
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.
The applications for obtaining registration or prior permission fcrq have to be made electronically on-line, and shall have to be followed by forwarding dcra hard copy of the on-line application, duly signed, together with the required documents within thirty days of the submission of the on-line application, failing which the request of the person shall be deemed to have ceased. FCRA, provides that the certificate granted shall be valid for a period of five fcrw and the prior permission shall be valid for the specific purpose or specific amount of foreign contribution for which permission was granted.
A judgment by the Delhi high court in held that both the Bharatiya Janata Party and the Congress were guilty of receiving donations to their party funds from the Indian subsidiaries of a “foreign” company, in contravention of the FCRA Act. The terms are too vague and give 9176 state excessive discretionary powers to apply the provision in an arbitrary manner. One may recall that earlier this year, 11, NGOs lost their FCRA licences without the government having to either examine their records or suspend their registrations individually — their licences simply expired as the deadline for renewal passed.
Further, every person who has been granted a certificate shall renew it within six months before the expiry gcra the period of certificate.
Foreign Contribution Regulation Act, FCRA was enacted in the year with the prime objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life.
Views Read Edit View history. 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. Who cannot Receive Foreign Contribution Foreign contribution cannot be accepted by a candidate for election; correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; judge, fcea servant or employee of any corporation; member of any legislature; political party or office bearer thereof.
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The forms can be obtained, free of cost, from the above-mentioned address. The implication of the judgment, which asked the government to “take action as contemplated by law”, was that the two political parties could face action for violating the FCRA and FCRA acts. It 19766 electoral candidates, political parties, judges, MPs and even cartoonists from accepting foreign contributions.
The discussion page may contain suggestions. The application shall be countersigned by the District Magistrate having jurisdiction in the place where the transferred funds are sought to be utilised. Since the FCRA Act, is national security legislation; NGOs are required to exercise extreme care and caution in dealing with foreign contribution from the time of its receipt to its final utilization.
From Wikipedia, the free encyclopedia. It is advisable to obtain a certificatein the format incorporated at the end of the application form, from any of the competent authority mentioned therein viz.
Charter for the Chartered Accountants Since the FCRA Act, is national security legislation; NGOs are required to exercise extreme care and caution in dealing with foreign contribution from the time of its receipt to its final utilization. Types of Permission i Registration under section 6 1 a ; and, ii Prior permission under section 6 1A. An ism is coming to an end. This page was last edited on 19 Novemberat It was never heard of again.
Bishwajit Bhattacharyya, former additional solicitor general of India, said, “Parliament has every authority to amend laws retrospectively, but the context can be questioned in a court of law. No funds other than foreign contribution shall be deposited in the FC account to be separately maintained by the associations etc.
The District Magistrate concerned shall take an appropriate decision in the matter within sixty days of the receipt of such request from the person.
Forms Prescribed for this Fcr 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. Every bank shall report to such authority, as may be prescribed, the amount of foreign remittance received, sources and manner and other particulars.
The Act also seeks to regulate flow of foreign funds to voluntary organizations with objective of preventing any possible diversion of such funds towards activities detrimental to the national interest and to ensure that such individuals and organizations may function in a manner consistent with the values of sovereign democratic republic.
Activities to 1967 treated as speculative activities have been defined.
Salient Features of FCRA, Comes into Effect from May 1,
Such provisions did not exist in the repealed Act. Clause of Finance Bill amends Section of fcrx Finance Act, to regularise all donations made by “foreign” firms: In the cash book and ledger account on double entry basis, where the FC relates to currency received and utilised.
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. If the foreign contribution relates to articles or foreign securities, the intimation shall be submitted in the prescribed Forms.
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