FCRA funds transferred to wrong account

Posted on April 9, 2013 by SRRF

Sir,

Money transfer from our foreign donor by mistake has been sent to another organization’s FC account as the wire transfer carried the other organization’s details instead of ours. How do we go about correcting this? Is it enough if the donor writes to the recipient and ask him to transfer the amount to us ? Will it be within the FCRA regulation? How can we correct this? The recipient will be ready to transfer/oblige.

Bhooma Parthasarathy

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5 Responses to FCRA funds transferred to wrong account

  1. Bhooma Parthasarathy says:
    April 12, 2013 at 7:14 am

    Dear members

    Thank you all very much for giving the clarification. This dialogue has been useful.

    Thanksand Regards
    Bhooma

  2. B V Soma Sastry says:
    April 10, 2013 at 6:51 am

    Dear Bhooma,

    Greetings from Hyderabad!

    The issue seems to be complicated. I have the following suggestions to make:

    1. The money has been transferred to another organization instead your organization. One way out is that the organization whose account has been credited should be transferred back to the donor. In such a case, the organization should give a request to the bank along with a from (I cannot remember the form number) provided by the bank. The funds will be transferred at the current day’s exchange rate.
    2. Secondly if the other organization is an existing partner of the donor, then some arrangement can be worked out between the organization and donor.
    3. As long as the funds are being transferred from one FCRA registered organization to another FCRA registered organization, there is no problem from the MoHA
    4. The normal formalities for the grant will have to be followed viz. Agreement, FCRA certificate etc.

    Request other to provide the inputs on the same.

    Thanks and regards,
    _____________________________________
    B V Soma Sastry
    Director – Finance and Admin
    Centre for World Solidarity
    12-13-438, Street No. 1, Tarnaka
    Secunderabad 500 017
    Andhra Pradesh

    • Subhash Mittal says:
      April 10, 2013 at 3:46 pm

      I am in agreement with Soma, just keep things simple. If the donor for both the organizations is common, just maintain sufficient documentation and funds can be directly trfd from one organization.

  3. Arvind Kumar says:
    April 10, 2013 at 4:38 am

    You are not defaulter at all in terms of FCRA norms. This is unidentified FCRA donation at recipient’s level, so they will be in trouble. If you have given wrong account details than it is your fault. To rectify this, you will have to keep a chain of documents: You must write to donor stating that money has been transferred to other organisation due to such and such mistakes. Then donor must write, clarify and direct to that organisation to transfer the money to your FC account. You will have to also write to that organisation and acknowledge that money was transferred to your account by mistake by our donor hence please further transfer the amount to us.

    • Sailendra Narayan Mishra says:
      April 10, 2013 at 10:38 am

      Dear Parthasarathy Ji,

      Greetings from Odisha!!!

      I respect the suggestion of Mr. Arvind Ji. You are not at all be in problem as per the FCRA norms because the money has been transferred to the FC account of that organization.

      If the “X” organization (Unknown to You) transfer the money to your FC account then the following complication may arise:
      1. Your FC account will reflect the name of “X” instated of DONOR’s name
      2. Your account will reflect that, the money will remitted to your account inside INDIA (FC A/C to FC A/C)
      3. Bank credit advice will also reflect the name of “X”. Then how your donor will justify that the remitted amount is theirs?

      So I think it is better if “X” refund the money to your DONOR and the donor release the money to you as suggested by Soma Ji.

      Thanking you.

      With warm regards,
      Sailendra

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