This is to bring to your notice that FCRA Dept. has only very recently notified the FCRA rules for FCRA Act 2010. These rules are effective from the date when the Act is effective. It may be remembered that the ACT had been notified during late September.
Through SRRF Dialogue series, salient features of the Act so passed was shared with the e-group members. However while reading the rules, it seems that FCRA rules will make life really difficult for most funding organisations funding registered NGOs.
As per rule 23 (last rule) all funds to be transferred to any other organisation needs central govt. approval through FC10. Considering the importance of the rule, the relevant part of the rule is reproduced herewith:
Rule 23 Procedure for transferring foreign contribution to other registered or unregistered persons:-
(1) Any person intending to transfer the foreign contribution may make an application to the Central Government in Form FC-10.
(2) The Central Government may permit the transfer in respect of a person who has been granted the certificate of registration or prior permission under Section 11 of the Act, in case the recipient person has not ben proceeded against under any provision of the Act.
(3) Any transfer of foreign contribution shall be reflected in Form FC6 returns as well as in Form FC-10 by the transferor and the recipient.
Form FC6 is the new form replacing erstwhile FC3, while FC10 is the new form only for the purpose of taking approval of transfer of funds to registered / unregistered organisations. The above change was not included in the Act and seems to be a backdoor change. This will affect almost all the funding agencies, and could hamper the working of all agencies who receive funds from abroad and presently transfer it to other registered NGOs without a problem.
Please visit http://www.srr-foundation.org to read more.
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Socio Research & Reform Foundation
(A Non Government Organisation)
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e-mail: socio-research@sma.net.in