FCRA

Transaction in FCRA accounts/utilisation accounts without FCRA certificate is illegal

Any transaction in FCRA accounts/FCRA utilisation accounts of the NGO, Association whose FCRA certificate has been cancelled or ceased or validity expired would amount to violation of FCRA, 2010 and is liable for penal action.

The FCRA 2010 provides that foreign contribution shall be utilized exclusively for the purposes for which it has been received. Therefore, each FCRA registered NGO/Association has to utilize such foreign contribution (FC) for the purpose for which it has been registered or granted Prior Permission under the FCRA, 2010.

Further. as per Section 11 of the FCRA, 2010. no person shall accept FC unless such person obtains a certificate of registration or prior permission from the Central Government, Also, Section 16 of the Act stipulates that every person who has been granted a certificate shall have such certificate  renewed within six months before expiry of the period of such certificate. Accordingly, the Foreign Contribution (Regulation) Rules, 2011 prescribes that no person whose certificate of registration has ceased to exist shall either receive or utilize foreign contribution.

As per latest Public Notice issued by the Ministry of Home Affairs, Foreigners Division, Monitoring Unit, instances have come to notice of this Ministry where credit or debit of FC has been noticed into the accounts of NGOs/associations who have not been granted registration/prior permission/ renewal under the FCRA, 2010 or such NGOs/associat1ons whose registration has ceased on expiry of validity period or whose registration has been cancelled.

The stakeholders have been cautioned that any receipt or utilisation of FC without valid FCRA registration is Violation of provisions of FCRA, 2010. Accordingly, any transaction in FCRA accounts / FCRA  utilisation accounts of the NGO, Association whose FCRA certificate has been cancelled or ceased or validity expired would amount to violation of FCRA, 2010 and is liable for penal action. Status of vahdity of the FCRA registration certificate may be checked on FCRA Web Portal.

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