26th November 2022

Confidant Classes

Competitors' very first choice

Home | LAW | What is FCRA ?

What is FCRA ?

Recently, licenses of 13 non-governmental organizations (NGOs) were suspended this year in 2010 under the Foreign Payments Regulations (FCRA). Their FCRA certificates were suspended and bank accounts were frozen. The Department of the Interior (MHA) reported receiving “serious negative comments” about the work of various NGOs under the FCRA in tribal areas. The licenses of at least two NGOs working in Jharkhand have been suspended.

What is FCRA?

The FCRA regulates foreign donations and ensures that such donations do not adversely affect internal security. The first law was introduced in 1976 and amended in 2010 with the adoption of a series of new measures to regulate foreign donations.

  • The FCRA applies to all associations, groups and NGOs that intend to receive foreign donations. All of these NGOs must register with the FCRA.
  • The registration is originally valid for five years and can be renewed later if you comply with all the rules. Registered associations can receive foreign payments for social, educational, religious, economic and cultural purposes.
  • Filing annual returns is mandatory for income taxes. In 2015, the MHA announced new rules under which NGOs pledged that the acceptance of foreign funds is unlikely to negatively affect the sovereignty and integrity of India or friendly relations with any other state or upset community harmony.
  • She also said that all these NGOs must use accounts with national or private banks that have central banking systems so that security agencies can access them in real time.

Who cannot receive foreign donations?

Members of the legislature and political parties, government officials, judges, and people in the media are prohibited from receiving foreign aid. In 2017, however, through the Finance Bill route, the MHA amended the FCRA Act, repealed in 1976, which paved the way for political parties to obtain funding from a foreign company or an Indian subsidiary of a foreign company, where the Indian has at least 50%.

  • According to legal experts, the change was based on allegations that the Bharatiya Janata Party and Congress had received foreign funding for political activities from the Vedanta Group in the UK between 2004 and 2012.), a public advocacy group, had filed a petition. public interest against both parties in Delhi High Court in 2013 for violating FCRA rules by accepting foreign funds. Both parties challenged a higher court decision that the donations were classified as illegal in 2014 and transferred to the Supreme Court. The petitions were withdrawn following a retroactive amendment by the FCRA.

How else can you get foreign financing?

Another way to obtain payments abroad is to apply for a prior permit. It is awarded to obtain a certain amount from a particular donor for certain activities or projects. However, the association must be registered under rules such as the Business Registration Act of 1860, the Indian Trusts Act of 1882 or section 25 of the Business Act of 1956.

  • In addition, a letter of commitment from a donor is required. foreigner to specify quantity and purpose. In 2017, the MHA suspended the FCRA, one of India’s largest public health advocacy groups, the FCRA, which used “foreign funds” to represent parliamentarians in the fight against smoking. After several representations by PHFI to the government, it was classified as “prior authorization”.

When is registration suspended or canceled?

The MHA may inspect the accounts and, upon receiving damaging information about the association’s activities, suspend the FCRA registration for an initial period of 180 days. Until a decision is made, the association cannot receive new donations and cannot use more than 25% of the amount available in a particular bank account without permission from the MHA. The MHA may withdraw an ineligible organization registration or “prior authorization” registration for a period of three years from the withdrawal date.

Have there been outages in the past?

According to the MHA, as of 2011, 20,664 NGOs were terminated due to violations such as misuse of foreign contributions, failure to file mandatory annual returns, and diversion of foreign funds for other purposes.

AILET 2023 Application Process Begins

AILET 2023 Application Process Begins

National Law University-Delhi NLU-Delhi will hold the AILET 2023 exam on December 11, 11:00 a.m. to 5:00 p.m. m. to…
Read More
All India Bar Examination 17 Syllabus and other details

All India Bar Examination 17 Syllabus and other details

AIBE 17 exam: Nearly one lakh candidates will take the AIBE exam this year, which will be held at 150…
Read More
AIBE 17 will take place in 3 months: BCI informs the Supreme Court

AIBE 17 will take place in 3 months: BCI informs the Supreme Court

Bar Council of India informed the Supreme Court that the syllabus for the upcoming All India Bar Examination 17 (AIBE17)…
Read More
Registration for CLAT 2023 will begin on August 8

Registration for CLAT 2023 will begin on August 8

CLAT 2023 will be held offline on December 18. Applicants can complete the online application form at consortiumofnlus.ac.in. CLAT 2023:…
Read More
AP LAWCET 2022 Results Declared

AP LAWCET 2022 Results Declared

Confidant-Classes-Judiciary AP LAWCET 2022 Results: Candidates who sat for the AP Common Entrance Test (AP LAWCET 2022) will now be…
Read More
Law graduates not practising since more than 5 years, must retake AIBE: BCI tells the Supreme Court

Law graduates not practising since more than 5 years, must retake AIBE: BCI tells the Supreme Court

The BCI has ruled that if a lawyer accepts a job not related to legal or judicial matters, then that…
Read More
Careers after Law

Careers after Law

Law has become the most common option in India at the moment. It has evolved and grown tremendously over time….
Read More
DU LLB Entrance Exam 2022 decoded

DU LLB Entrance Exam 2022 decoded

The University of Delhi will conduct the entrance exam of DU LLB 2O22 tentatively in next month. The university had…
Read More
UG-CLAT 2023 Exam Pattern

UG-CLAT 2023 Exam Pattern

The UG-CLAT 2023 would focus on the assessment of the candidates’ comprehension and reasoning abilities and skills. In general, it…
Read More
70-Year-Old Fortunate to Complete LLM | University of Delhi Centenary Chance Initiative

70-Year-Old Fortunate to Complete LLM | University of Delhi Centenary Chance Initiative

Under the University of Delhi’s Centenary Chance initiative, a 70-year-old man is given the chance to complete his LLM after…
Read More

About Post Author

error

Enjoy this? Please spread the word :)