Anonymous
Asked December 29, 2016

FCRA violation

  • 1 Answer
  • 612 Views

On what grounds has the Government held that several NGOs are violating FCRA? What is the legal recourse available for such NGOs now?

Answer 1

Validity of FCRA registration in respect of more than 11000 associations has been deemed to

have ceased w.e.f. 1.11.2016 in accordance with the rule 12(6) of FCRR, 2011 which states,

“In case no application for renewal of registration is received or such application is not

accompanied by the requisite fee, the validity of the certificate of registration of such person

shall be deemed to have ceased from the date of completion of the period of five years from

the date of the grant of registration.”. These associations were required to file applications for

renewal under Rule 12 (2) of Foreign Contribution Regulation Rule 2011 by 30 th June 2016.

Since renewal applications of these associations were not received by 30 th June 2016, their

registration is deemed to have ceased w.e.f. 1 st Nov 2016.

These associations can however, file renewal application online on www.fcraonline.nic.in

within four months i.e. from 1 st November 2016 to 28 th February 2017 in accordance with rule

12(8) of FCRR 2011 providing sufficient grounds in writing to be signed by chief

functionary/ authorised representative explaining the reason for not applying the renewal of

registration within stipulated time along with the requisite fees and documents namely FCRA

registration certificate and memorandum of association. The renewal shall be granted only if

all the earlier annual returns have been filed by associations.

Moreover, Central Government may cancel the certificate, after carrying out an inquiry, on

the following grounds –

 (a) the holder of the certificate has made an incorrect/false statement in the

application for the grant of registration or renewal

 (b) the holder of the certificate has violated any of the terms and conditions of the

certificate or renewal thereof

 (c) in the opinion of the Central Government, it is necessary in the public interest to

cancel the certificate

 (d) the holder of the certificate has violated any of the provisions of this Act or rules

or order made thereunder.

 (e) if the holder of the certificate has not been engaged in any reasonable activity in its

chosen field for the benefit of the society for two consecutive years or has become

defunct.

Any person whose certificate has been cancelled under this section shall not be eligible for

registration or grant of prior permission for a period of three years from the date of

cancellation of such certificate.

As per section 40 of the FRCA, 2011, “No court shall take cognizance of any offence under

this Act, except with the previous sanction of the Central Government or any officer

authorised by that Government in this behalf.” The offences which can be compounded are

mentioned in Section 41 of the FRCA, 2011.An application for the compounding of an

offence under section 41 of FCRA, 2010 is to be made to the Secretary, Ministry of Home

Affairs, New Delhi on a plain paper along with a fee of Rs.1000/- (One Thousand only) in the

form of a demand draft or a banker’s cheque in favour of the “Pay and Accounts Officer,

Ministry of Home Affairs”, payable at New Delhi. In the event of failure to pay the penalty,

for whatever reason, necessary action for prosecution of the person shall be initiated.

The Central Bureau of Investigation or the investigating agencies (Crime Branch) of the State

Governments, cause of action of which arises in their respective States, are the designated

agencies for investigating and prosecuting a person for violation of FCRA.

But after the violation committed by an association has been condoned, the association can

apply for prior permission (PP)/registration.

Sources:

 The Foreign Contribution (Regulation) Act, 2010,

https://fcraonline.nic.in/home/PDF_Doc/FC-RegulationAct- 2010-C.pdf

 The Foreign Contribution (Regulation) Amendment Rules, 2015,

https://fcraonline.nic.in/home/PDF_Doc/doc00600120151214130739.pdf

 https://fcraonline.nic.in/home/PDF_Doc/fcra_11319_03112016.pdf

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