The Foreign Contribution (Regulation) Act regulates the acceptance and implementation of foreign contributions by individuals, associations, and companies. On 29th September 2020, the Central Government notified amendments made to certain provisions of the Act.
Section 2(h) of the Act defines ‘Foreign Contribution’ as a donation, delivery, or transfer made by any foreign source. This is a contribution of any currency, article, or security by such a foreign source.
The FCRA can be construed as a framework which governs and regulates the receipt of foreign contribution in India. It deals with registration norms, requirements for receiving foreign funds, implementation of the contributions, and also lays down prohibitions on receiving contributions.
KEY HIGHLIGHTS OF THE AMENDMENT.
Section 3 of the Act provides for ‘prohibition to accept foreign contribution.’ Under Clause 1 of this section, a list of persons prohibited from accepting any kind of foreign contribution has been laid out. The list includes judges, government servants, employees of a governmental corporation, election candidates, correspondent, columnist, cartoonist, editor, owner, or publisher of a registered newspaper, members of any legislature and political parties and organisations engaged in the production or broadcast of news. The amendment made to this section has included the category of ‘public servants’ as defined under Section 21 of the Indian Penal Code,1860. It can be construed that; this inclusion is to hinder exerting influence over anyone discharging public duty through foreign funds.
Section 7 of the Act, previously allowed for the transfer of foreign contribution to persons registered or had acquired permission to accept foreign contribution. Now, through this amendment, any such transfer of foreign contributions stands completely prohibited.
Section 8 of the Act has been amended to reduce the limit on the percentage of foreign contributions that can be utilised towards administrative expenses. The previous limit of fifty percentage has now been restricted to twenty percentage, to be spent on administrative expenses such as salaries, wages, rent charges, travel expenses, etc.
Under Section 17 of the Act, it was permissible to receive foreign contribution in a single branch of any scheduled bank and for more accounts to be opened in other banks for utilisation of such funds. This has now been amended to restrict foreign contributions to be received in other banks. Contributions can only be received in an account nominated as an ‘FCRA Account’ in a prescribed branch of State Bank of India, New Delhi. This shall aid in the centralisation of foreign contributions, making it easier to monitor.
This amendment has introduced a new provision, Section 12A, which requires any person seeking permission or registration to accept foreign contribution must provide Aadhar details of all office-bearers, directors, or key personnel. A copy of passport or Overseas Citizen of India card must be provided in the case of foreigners.
As a preventive measure, a proviso has been added to Section 11 of the Act which allows the government to restrict utilization of unutilized foreign contribution, in cases where it is believed that a person has contravened provisions of the Act.
An inquiry may be conducted by the government before granting renewal of license and suspension of registration may be extended for a further hundred and eighty days.
Voluntary surrender of registration certificate has been provided for under Section 14A of the Amendment Act. If the government is satisfied that a person has not violated any provisions of the FCRA, and management of its foreign contribution has been vested in an authority prescribed by the government.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)A And Other Related Laws Being Force In India, For The Time Being.
