FCRA Bill 2010 (as passed by the Parliament)

As you may be aware, Parliament has passed Foreign Contribution Regulation Bill 2010 on 19th August 2010 replacing the earlier 1976 FCRA Act. The new Act has added, amended a number of provisions.

SRRF Dialogue brings out some the important changes, that will come into force once the law becomes effective, for your information through a series of communications over next few weeks.

Effective Date

  1. The new legislation though passed by the Parliament, it is yet to receive President’s assent. Then it will need to be notified in the Official Gazzette, and only after that it will become applicable. The date of publication in the notification will be the date of the Act becoming effective.

FCRA Registration to be renewed every five years

  1. FCRA Registration Certificate is no longer permanent, but would need to be renewed every 5 years. The persons who are already having their Registration Certificate would also need to apply for renewal of registration after 5 years from the date the new S.11 (1) becomes effective – most likely the date the Act becomes effective.

It could mean that a large number of organizations presently already registered under FCRA would need to apply for renewal almost around the same period. Does our FCRA dept. has so much infrastructure / manpower to handle thousands (if not lakhs) of applications at the same time.

New requirements for Registration

  1. Process for registration has been made far more rigorous.


i. not be benami/fictitious

ii. not prosecuted / convicted for indulging in activities of conversion by inducement / force

iii. not prosecuted / convicted for creating communal tension or disharmony

In fact the above two conditions seem rather superfluous since subsequent sub-sections in the Act state that the applicant (in case of individual) or any of the office bearers of the applicant (in case of an organization) should not been convicted / prosecuted for any offense ! Then why prescribe the above two provisions.

iv. not engaged in sedition or advocate violent methods

v. has not been found guilty of mis-utilization /diversion of funds

vi. not likely to use the foreign contribution of for undesirable purposes

vii. not contravened any of the provisions of this Act

viii. has not been prohibited from accepting foreign contribution.

Earlier conditions that the foreign contribution should not affect prejudicially sovereignty, integrity, etc. have been retained.

In addition to above the person making application, should have taken reasonable level of activities in the field for which application is being made. In case of prior permission, the project for which permission is sought should be a reasonable project for the benefit of the society.

More to continue………………


Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

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