1. Important Definitions (S. 2) include Chief Executive Officer, Chief Financial Officer, Foreign Society, Inter-state activity among others, etc.
Re-registration of existing Societies under the proposed Act
2. Allsocieties undertaking ‘inter-state activity’ will fall under the category of Multi-State Society, and therefore would require registration under the proposed Act. Inter-state activity has been defined as any activity carried out by a society directly or indirectly for cash or for other valuable consideration from the place other than the place of origin including overseas transaction.
The definition of this activity will also include societies whose
- funds are in excess of a limit, to be prescribed, under FCRA, from NRIs, from grants & donations,
- receipt of immovable property from central govt. or any of its agency,
- providing funds to another society or having membership of another society,
- having foreign citizens or NRIs as members of the society.
3. The Act is applicable not only to all Multi-state societies incorporated after the commencement of the Act but also all existing societies which would fall under the definition of ‘Multi-State Societies’ as per this Act. Hence it is quite likely that most existing Societies will need to re-register under the proposed Act. Non-registration will result in ceasing of all such activities falling under the definition of ‘inter-state activities’ as defined above within 12
4. There is a provision that a society registered under Societies Act 1860 and pending registration under this Act, may receive funds from persons mentioned under 2 above, however it may not be utilized, till the registration process under Multi-State Societies Act is complete.
5. Any violation of the above provision would attract penalties.