On what grounds has the Government held that several NGOs are violating FCRA? What is the legal recourse available for such NGOs now?
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
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.
The Foreign Contribution (Regulation) Act, 2010,
The Foreign Contribution (Regulation) Amendment Rules, 2015,
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