Applicability of Lokpal on Branch Office /Liaison Office

Posted on July 20, 2016 by SRRF

Micronutrient Initiative (MI) is a non-profit organization registered in Canada with its head office in Ottawa and branch office at New Delhi. Request to clarify if Lokpal Act is applicable for branch office or only for organizations registered with FCRA.

Thanks

Ramya Haricharan

An other query received on the same topic from Mr. Kushal
Dear Members,

I have two questions.

i. Can any one from this group advise if a Branch office or Liaison Office of an INGO will be covered under this new regulation under Lokpal and Lokayuktas Act 2013 (LLA, 2013?

ii. Will this regulation apply to Section 8 companies as well?

Thanks & Best Regards,

Kushal

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7 Responses to Applicability of Lokpal on Branch Office /Liaison Office

  1. Ram mohan NVS says:
    July 21, 2016 at 7:51 am

    Respected sir
    Greetings

    thanks for your kind information regarding submission of NGOs information on Lokpal . pl send the details of which website we will attach this filled application through online

    we are eagerly awaiting for your kind response

    thanks and regards
    Ram mohan NVS

    HELP, 2nd lane, Sujatha nagar, Lawyer pet Ext, ONGOLE – 523 002. A.P

  2. B V Soma Sastry says:
    July 20, 2016 at 1:22 pm

    Dear Mr. Kushal,

    To my understanding the LLA is applicable to the functionaries of the NGOs and not NGOs per se. The functionaries of the NGOs will have to disclose their assets/liabilities to the concerned department.

    The Act covers society or association of persons or trusts whether registered or not. Hence section 8 companies will also be covered.

    Thanks and regards,

    B V Soma Sastry

    • Subhash Mittal says:
      July 26, 2016 at 9:36 am

      Soma,

      S. 8 Compnay not covered under 14(h), although covered under 14(f) & 14 (g).

    • Subhash Mittal says:
      July 26, 2016 at 9:56 am

      Ramya / Kushal,

      A Liaison Office normally is meant only for receiving funds from HO and too to for salaries & office support. It does not undertake any programmatic work, hence generally does not have an FCRA. Therefore Lokpal not likely to be applicable to a LO.

      BO is not so clear, also representing a foreign company, it does not have an independent existence, since it does not have a Board or management structure in India. Its Country representative represents its foreign management. If it gets covered it will be under the definition of Association of Person (AOP). At this stage I am not sure of this applicability, since AOP is mainly defined under Income Tax Act, but that is in context of persons coming together for a common cause but purpose should be for generating income. Therefore this is not likely to apply here.

  3. Neeraj Kumar Sinha says:
    July 20, 2016 at 8:44 am

    Dear Kushal,
    Applicability of Lokpal on Branch Office /Liaison Office will applicable for those companies working and registered in India, and they are receiving INR 01 Cr grant from any central government department or INR 10 Lakh grant annual in their FCRA account.
    As Branch office or Liaison Office, you would not be receiving any grant/assistance from within India, all your expenses will be remitted from out side India, in may opinion that would not be covered under this act.

    As far as section 8 companies, it would definitely cover, if they are receiving any grant from Central Government for INR 01 Cr or any FCRA grant above 10 Lakh in a year.
    Regards

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