FCRA Act 2010 & Draft Rules

As informed earlier through the SRRF Dialogue e-group, Govt has passed FCRA 2010 Act in September 2010. However the Act is still in abeyance as the rules have not been finalized. MHA has posted draft rules on its web-site, inviting comments against the same by 31st March 2011.

While there are some positives in the new legislation, there are some negatives. Since the Act has already been promulgated, not much can be done. However rules are still at draft stage, and it is the duty of everyone associated with the Development sector to contribute in removing several negatives included in the Rules.

SMA Management organized a Roundtable on 15th March 2011 at IIC, New Delhi on this topic, with a view to formulating a Memorandum to the Govt. A Group has been formed from the participants who attended the Roundtable for finalizing the memorandum from views received from participants. SRRF Dialogue urges all its members to contribute towards the same individually or through this group. If you would like the comment to go through the Memorandum, please send your comments at the earliest.

To familiarize you, with changes in the Act & Rules a presentation made at the Roundtable is available at the SRRF website and can be accessed through following link:


We urge each one of you to provide your comments. In case you would like to share/ raise queries, please do so as usual through the group link below.
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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10 Responses to FCRA Act 2010 & Draft Rules

  1. Dee Megeath says:

    Definitely, what a great blog and educative posts, I will bookmark your website.Best Regards!

  2. Subhash Mittal says:

    Dear Mr Mathew,

    First of all my apologies for delay in responding to your mail. Somehow your message skipped my attention, recently when I was clearing my inbox I noticed it. It is good that that you are finding the contents of the e-group interesting.

    I think we have a member under the name of ‘jose@deepalaya.org’. However I have also asked our IT Manager to add e-mail id as suggested by you.

    warm regds

    subhash mital

  3. mathew says:

    Dear subashishji,
    Thanks. Mr jose mathew DDF of Deepalaya may be added for Deepalaya responses.
    T k

  4. UdayaShankar says:

    Dear Friends,
    As a lay person, I like to seek clarity on :
    If the total receipts in a financial year is below 10 lacs, the financial records/account books need not be preserved for more than 3 years and in all other cases not more than 10 years. Depreciation periods, lease periods, varying periods of various bonds / investments , financial records related to movable and immovable assets may make it difficult to fix the preservation period.
    Is there any definition of what is political in nature! Which activity is political? what are apolitical, non-political, anti-political activities? Any case law related to these terms?
    Many NGOs are/ were engaged by Election Commission and P Raj, RD, Social Justice, etc; ministries in election related education.

    Is it true that Companies that come under FEMA and companies that come under section 25c face more rigid rules and regulations than Societies / Trusts that come under FCRA? or The Companies can have field days and only the CSOs have to suffer all the rigour and ultimately rigors ! Any comparative statement ?
    Udaya Shankar

  5. Sevanti Nina says:

    Dear Mr Mittal,

    I also want to point out that whereas section 4 b says specifically that a

    correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper

    cannot receive a foreign contribution, the logic of this is undermined by the fact that GOI’s changed FDI rules have for several years now permitted newspapers to have foreign equity of 26 per cent, and likewise for TV news channels. When some of the country’s biggest newspapers (Hindustan Times, Dainik Jagran) now have foreign equity partners, why not not-for-profit media entities? The law does say that the above persons can receive foreign money as remuneration for services rendered, but the point which a former FCRA joint secretary made to me some years ago –we do not want Indian minds to be influenced by foreign money–stands undermined by the changed circumstances in the country, post liberalization, and the new act should take cognizance of this.


    Sevanti Nina

  6. Jayesh Joshi says:

    Dear Subhash ji,

    Greetings from VAAGDHARA!!

    I would like to express sincere gratitude to you, for taking this important initiative at correct time. The way you proceeded this dialogue is very important for the grassroot organization like ours.

    No doubt, as we are getting positive response, definately we will be successful in putting our concerns in the forthcoming new FCRA rules.

    All over again thanks from the grassroot community.

    With best wishes

    Jayesh Joshi

  7. Subhash Mittal says:

    Dear Freinds,

    I thank you so much for your kind and encouraging words.

    But basically it was Team effort, which we have just facilitated. I will also like to inform you that yesterday another feedback was submitted to the Dept. on following two points.

    1. There is no provision in the rules regarding preservation time for records. A preservation period of say 8 or maximum of 10 years would save lot of costs, since presently the Act is now 35 years old.

    2. Rule 3 (iii) states that an organisation could be declared as ‘Political in nature’ for commenting upon political activities. This is against the democratic principles enshrined in the Constitution and needs to be reconsidered.

    Credit for bringing out these issues to the fore goes to Mr Kosala of CASA.

    Look forward to more inputs from many of you on several other issues which the SRRF Dialogue tries to bring out. Do hope members will share their experiences and discuss these issues for the benefit of all.

    with warm regds

    subhash mittal

  8. Wg Cdr SS Roychoudhury says:

    Dear Mr.Mittal,

    We are only looking towards you.God bless you

    Rtn.Wg.Cdr.(Retd.)SS Roychoudhury,FIE
    Chief Executive Officer.
    Hemophilia Federation(India)
    A-128,Mohammadpur(Behind Bhikaji Cama Place.)
    New Delhi-110066

  9. Vijaya Raman says:

    Dear subash, Great job done. Pl keep it up.

    Regds, raman

  10. Subhash Mittal says:

    Dear Group Members,

    I would like to inform all the Group members that I along with a few colleagues (Mr KRP Kosala, CASA; Mr T. Baskar, Plan India, Mr Deepak Bansal, SMA Management) met MR GVV Sarma, Joint Secretary in FCRA Dept. and submitted our representation on Draft FCRA 2011 Rules. We found the approach of Mr Sarma quite positive and he has promised to go through the entire Representation document and consider it to the extent these are applicable to the Draft Rules (since the FCRA Act is already enacted).

    I requested if anyone else wants to submit comments on the Draft Rules, if these can be submitted even now (last date for submission is 31-3-2011). Mr Sarma suggested that comments should come at the earliest as they wish to finalise the Rules within a week or so. I request all the Group memebrs to provide comments to the Dept. on e-mail id ds-fcra@nic.in at the earliest. Quick action is important considering the time is very short.

    To facilitate the same, a suitably modified version (word format) of the Representation Letter is attached, which anyone can use with necessary editing/addition, etc.

    In case any of the members require any clarification, you are welcome to raise the same and we will try to respond it at the earliest.

    with warm regds

    subhash mittal

    Sample FCRA Representation Letter.doc

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