Understanding ‘prior permission’ under
FCRA
An association or an organisation can receive foreign
contribution even without registration with prior permission
from the FCRA department. Foreign funds and materials
can only be received under two circumstances-
i. the organisation has obtained permanent registration
from the FCRA department.
ii. the association or the organisation obtains
prior permission from the FCRA department on case
to case basis.
Generally prior permission will be required under
the following circumstances:
i. the organisation does not have permanent FCRA
registration number.
ii. the FCRA registration number has been cancelled
by the Government.
iii. the association is instructed by the Central
Government to take prior permission where power
have been provided
to prohibit any organisation from receiving foreign
funds.
iv. the FCRA number is suspended due to violation
of the provisions and conditions specified under
the FCRA.
v. the organisation is of political nature, not
being a political party.
vi. any person resident in India or any citizen
of India resident outside India, receiving foreign
funds on behalf
of an organisation of political nature.
The relevant statutory provisions: The expression
of prior permission appears in Section 11(2)
and 11(3).
The relevant extract of Section 11(2) and
11(3 )is reproduced as under :
(2) Every person referred to in sub-section
(1) may, if it is not registered with the
Central
Government under
that sub-section, accept any foreign contribution
only after obtaining the prior permission
of the Central Government
and such prior permission shall be valid
for the specific purpose for which it is
obtained
and from
the specific
source:
Provided that if the person referred to
in sub-sections (1) and (2) has been
found guilty
of violation
of any of the provisions of this Act
or the Foreign Contribution
(Regulation) Act, 1976, the unutilized
or unreceived amount of foreign contribution
shall not be utilized
or received, as the case may be, without
the prior approval of the Central Government.
(3) Notwithstanding anything contained
in this Act, the Central Government
may, by
notification
in the
Official
Gazette, specify—
(i) the person or class of persons
who shall obtain its prior permission
before
accepting
the foreign
contribution;
or
(ii) the area or areas in which the
foreign contribution shall be accepted
and utilized
with the prior
permission of the Central Government;
or
(iii) the purpose or purposes for which
the foreign contribution shall be utilized
with
the prior
permission of the Central
Government; or
(iv) the source or sources from which
the foreign contribution shall be accepted
with the prior
permission of the Central
Government.
Procedure
for obtaining ‘prior permission’
The Organisation is required to apply
in Form FC-3 for prior permission
to the FCRA
department
along
with the
uploading of the following documents-:
SI.
No |
Document
Name |
Maximum
Size Limit of PDF document |
1. |
Registration
Certificate of Association. |
1
MB |
2. |
Memorandum
of Association/Trust Deed. |
5
MB |
3. |
Commitment
Letter from the donor organization and agreement. |
5
MB |
4. |
Project Report for which FC will be received. |
3
MB |
i.
Audited statement of accounts of past three years.
ii. Activities Report of past 3 years.
iii. If the association is a registered Trust or Society
a certified copy of the registration certificate.
iv. Copy of the Memorandum of Association and/or the
Articles of Association as applicable.
v. A copy of the latest commitment letter from the donor.
vi. A copy of the proposal / project which has been approved
by the foreign source for funding, including projected
outlays, budget breakups.
vii. Details of names and addresses of the members of
the Executive Committee/Governing Council etc. of the
Association.
viii. Copy of any prior permission granted to the organization.
ix. List of present members of the Governing Body of
the organisation and the office bearers.
x. Copy of any Journal or other publication of the organization.
xi. If the association is having any parent or sister
or subsidiary organisation which is registered under
the FCRA then the registration number along with Ministry
of Home Affairs file number should be mentioned.
xii. If the association has submitted any application
earlier then its reference number should be mentioned.
xiii. If the association has received any foreign contribution
with or without the prior approval of the Central Government,
then the detail should be given.
xiv. Details of Bank along through which the foreign
contribution shall be received.
xv. A recommendation certificate from any competent authority,
if any.
Copy
of certificates of exemption or registration issued
by the Income Tax Department u/s 12A,
if any
Time Limit for making application
An application for prior permission under Form
FC-3 can be made any time after the legal
constitution of
an organisation.
Though clause of Form FC-3 requires submission
of details of activities of past three years and
three years audited
statements. Where the organisation is less than
three years old, it can submit the documents for
lesser
number of years as may be available.
Prior Permission for receiving Foreign Hospitality
Under FCRA, the following are prohibited
from accepting foreign hospitality except
with prior permission:
- member of a legislature
- office bearer of a political party
- Judge
- Government servant or employee of any
corporation
The above-mentioned persons are required
to apply in Form FC-2 for availing
any foreign hospitality.
In
this Form, details regarding the nature
of hospitality, the
approximate amount of expenses, the specific
dates and countries is required
to be provided.
The exceptional situation - Further,
it has been provided that no
such prior permission
would be
necessary in
case of an emergency medical aid on
account of a sudden illness.
In such cases, the person receiving
such hospitality can give, within one
month from the date of
receipt of such hospitality, an intimation
to the Central
Government, regarding the receipt of
such hospitality and the source
and the manner in which such hospitality
was received. Section 6 and rule
7 are relevant
in this regard.
Field Enquiry
The FCRA department may ask the intelligence
bureau for a report. Some authorities
from the intelligence
bureau
may visit the office and the project
area of the organisation and inspect
the books
of account
and
other records
available. On the basis of the reports
submitted by the intelligence
bureau the FCRA department decides
whether to accept or reject the application.
The FCRA department issues a registration
certificate and provides a permanent
registration number.
This registration number is required
to be quoted in
all future correspondences
and filling of returns and forms.
Time
limit for granting ‘prior
permission’
After making inquiry, the Central
Government may grant him prior
permission, ordinarily
within ninety
days
from the date of receipt of
application.
In case the Central Government
does not grant, within the
said period
of ninety
days, prior
permission, it shall communicate
the reasons there for to the
applicant.
Refusal and appeal
Section 12(4)(a) states the
grounds or the reasons
on the basis of
which an
application can be rejected.
If
the Central Government
after making the necessary
inquiry is of the opinion
that the person making an application
for prior permission is
fictitious or benami; has been prosecuted
or
convicted for indulging
in activities
aimed at conversion through
inducement or force, either
directly
or indirectly, from one
religious faith to another; has been
prosecuted
or
convicted
for
creating communal
tension
or disharmony in any specified
district or any other part
of the country;
has been found
guilty
or diversion
or mis-utilisation of its
funds; is engaged or likely to engage
in propagation
of
sedition or
advocate
violent methods to achieve
its ends; is likely to
use the foreign
contribution for personal
gains or
divert it for undesirable
purposes; has contravened
any
of the
provisions of this
Act; has been prohibited
from accepting foreign contribution.
Where the Central Government
refuses the grant of certificate,
it shall
record in
its order
the reasons
therefor and
furnish a copy to the applicant.
The Central Government
may not communicate the
reasons
for refusal for
grant of certificate to
the applicant
in cases where is
no obligation to give any
information or documents
or records
or papers under the Right
to Information Act, 2005.
If an application is rejected
and the applicant believes
that an unjust
order
was passed
against him, then
he can appeal to High
Court within a period of sixty
days from the date
of the order
of
rejection. The period
of sixty days should be
counted from
the date of
the order
and not the date of
receipt of the order.
The statutory provision
- The provision for
appeal is provided
as per section
31 which
is an under:
(2) Any organisation
referred to in clause
(f) of sub-section
(1)
of section
3,
or any person
or association
referred
to in section 6 or
section 9, aggrieved
by an order
made in
pursuance of
section 5 or
by an order of
the Central
Government refusing
to give permission
under this
Act,
or by any order
made by the Central
Government
under
sub-section (2) or
sub-section (4) of
section 12, or sub-section
(1)
of section
14, as
the case may
be, may,
within sixty days
from the date of such order,
prefer
an appeal
against
such
order to the
High Court within
the local limits
of whose
jurisdiction the
appellant ordinarily resides
or carries on
business or personally
works for gain, or,
where the appellant
is an organisation
or association,
the principal
office of such organisation
or association is
located.
(3) Every appeal
preferred under
this section
shall be deemed
to be an appeal
from an
original decree
and the
provisions of Order
XLI of the First
Schedule to
the Code
of
Civil Procedure,
1908, shall,
as far
as may be,
apply thereto as
they apply to an
appeal
from an original
decree.
VARIOUS TYPES OF PERSONS RECEIVING FOREIGN FUNDS
Under FCRA there are various categories of recipients
of foreign funds and FCRA has different stipulation
for each of them. The following sub-heads discuss the
various kinds of recipient and the stipulation laid
down for each of them:
NGOs or Charitable Organisation
All NGOs or Charitable Organisations having a definite
cultural, economic, religious or social programme
are eligible for registration under FCRA. Once a
FCRA registration
is obtained, such organisation can receive foreign
funds with obtaining any further approval subject
to other
formalities of FCRA.
Person specified in Section 3
Section 3 of FCRA specifies that the following persons
cannot receive foreign contribution:
a) candidate for election;
b) correspondent, columnist, cartoonist, editor,
owner, printer or publisher of a registered
newspaper;
c) Judge, Government servant or employee
of any corporation or any other body controlled
or owned
by the Government;
d) member of any Legislature;
e) political party or office-bearer thereof;
f) organisation of a political nature as
may be specified under sub-section (1)
of section 5 by the Central Government;
g) association or company engaged in the
production or broadcast of audio news or
audio visual news
or current
affairs programmes through any electronic
mode, or any other electronic form as defined
in clause
(r)
of sub-section
(1) of section 2 of the Information Technology
Act, 2000 or any other mode of mass communication;
h) correspondent or columnist, cartoonist,
editor, owner of the association or company
referred
to in clause (g).
The above mentioned person cannot receive
foreign contribution subject to certain
exceptions specified
in section 4
which are as under:
a) If they receive foreign funds by way
of salary, wages or remuneration for
services rendered.
b) If they receive payment in ordinary
course of business transaction in India
by such
foreign organisation
or
source.
c) If the funds are received in the course
of international trade or commerce or
in the ordinary
course of business
transacted outside India.
d) Payment is received as an agent of
a foreign source or organisation in relation
to any
transaction made
by such foreign organisation with the
governance.
e) If the payment is received by way
of gift or presentation as a part of
any Indian
delegation
within the norms
of acceptance described by Central Government.
f) Payment is received from relative
staying abroad.
g) Payment is received through official
channel, post office or any authorized
dealer in the
ordinary course
of business”.
h) by way of any scholarship, stipend
or any payment of like nature:
Organisation of Political nature
Organisation of political nature cannot
register itself under FCRA and they
are not eligible
to receive foreign
contribution. The Central Government
has published a list of organisations
which
are considered
as organisation of political nature.
Individual Citizens
The Foreign Contribution (Regulation)
Act is applicable to private individuals
also.
The definition
of person
includes- individuals, Hindu Undivided
Family, Association, a Section
8 company.
Organisations engaged in commercial/business
activity
Movement of foreign funds in
the normal course of commerce
and business
is
outside the purview
of FCRA.
Therefore,
business organisation need
not worry about FCRA as FCRA
is only
internal
security enactment. However,
the provision
of Foreign Exchange Management
Act, 1999, which
is a financial legislation,
would be applicable.
Annexure 1
List of Organisation which are considered as Organisation
of Political Nature
Sl. No. Name of the Organisations
1. All India Kisan Sabha (AIKS) 4, Windsor Place, New
Delhi.
2. Bhartiya Khet Mazdoor Union, 4, Windsor Place, New
Delhi.
3. All India Trade Union Congress, New Delhi.
4. All India Kishan Sabha (AIKS) 4, Ashoka Road, New
Delhi.
5. Centre for Indian Trade Unions, 15, Talkatora Road,
New Delhi.
6. Bhartiya Mozdoor Sangh, Ram Naresh Bhawan, Pahargunj,
New Delhi.
7. Indian National Trade Union Congress, 4, Bhai Veer
Singh Marg, New Delhi.
8. United Trade Union Congress Lenin Sarani, Calcutta.
9. National Front Indian Trade Unions 10, Government
Place East, Ezra Mansion, Calcutta.
10. All India Federation of University & College
Teachers Organisations, Calcutta.
11. All India LIC Employees Federation, Bombay.
12. All India Bank Employees Federation, Delhi.
13. All India Defence Employees Federation, Pune.
14. All India State Government Employees Federation,
Hyderabad.
15. All India Railwaymen’s Federation, New Delhi.
16. All India Railway Worker’s Federation, New
Delhi.
17. Bhartiya Railway Mazdoor Sangh, Mumbai.
18. All India Loco Running Staff Association, Lumding,
Assam.
19. All India Federation of Electricity Employees, Residency
Road, Sadar, Nagpur.
20. National Federation of Post & Telegraph, Employees
(K.L. Moja Group). New Delhi.
21. Trade Union Coordination Centre, 28, Gurudwara Rakabganj
Road, New Delhi.
22. Progressive Labour Union, Durgapur, West Bengal.
23. Kerala Trade Union Front, Chettiangadi, Trichur.
24. Swantantra Thozilali Union, State Muslim League Office,
Calicut.
25. Swantantra Thozilali Union, Mavoor, Calicut.
26. Labour Progressive Federation, Arivagam, Rayapuram,
Madras.
27. Anna Thozhir Sangha Peravani, Madras.
28. State Central Labour Union, Srinagar.
29. Sarva Shramik Sangh, Mumbai.
30. Bhartiya Kamagar Sena, Mumbai.
31. National Labour Co-ordination Council, Calcutta.
32. United Trade Union Congress, Bipin Behari Ganguly
Street, Calcutta.
33. National Labour Organisation, Ahmedabad.
34. All India Student Federation, New Delhi.
35. All India Youth Federation, Delhi.
36. Student Federation of India, 11, Windsor Place, New
Delhi.
37. Democratic Youth Federation of India (CPM), 11, Windsor
Place, New Delhi.
38. Akhil Bhartiya Vidyarthi Parishad, Mumbai.
39. All India Democratic Student Organisation 48, Lenin
Sarani, Calcutta.
40. Comsomal, Calcutta.
41. Revolutionary Youth Front, 124/C, Lenin Sarani, Calcutta.
42. Progressive Student Union, Calcutta.
43. Progressive Democratic Students Union, Hyderabad.
44. Radical Student Union, Hyderabad.
45. Punjab Student Union.
46. All India Sikh Students Federation, Amritsar.
47. West Bengal Chhatra Parishad, Calcutta.
48. National Federation of Indian Women, New Delhi.
49. Nikhil Banga Mahila Sangha, Calcutta.
50. Islamic Study Circle, Red Cross Road, Opp. Hazi Masjid,
Maisuma, Srinagar.
51. Awami Action Committee, J & K.
52. J & K People’s League, Srinagar.
53. Tribal Front, Agartala.
54. All India Muslim Majlis –e- Mushwarat, E-3,
Abul Fazal Enclave, Okhla, New Delhi.
55. Tabligh Jammat, Bangle Wali Masjid, Nizammudin Basti,
New Delhi.
56. Citizens for Democracy, New Delhi.
57. Nag Vidharbha Andolan Samiti, Nagpur.
58. Marathwada Janata Vikash Parishad Saraswati Bhavan,
Sikshan Prasarak Mandal College, Aurangpura, Aurangabad.
59. Maharashtra Ekikaran Samiti, Sahar Samiti Karyalya,
Jalti Math, Near Kapil theatre, Kirloskar Road, Bangalore.
60. The Kannada Paksha, 31, Nanje Gowda Road, Mavalli,
Bangalore.
61. Dravida Kazhagam, Periyar Thaidal, 50, EVK, Sampath
Road, Madras-7.
62. Tamilnadu Toilers Progressive Party, Madras.
63. The Neelchakra, Dolamundai, Cuttack.
64. Dalit Panthars, Wadala, Bombay.
65. Dalit Panthara, Bhawani Path, Pune.
66. People’s Union for Civil Liberties, 8, Sahayog
Apartments, Mayur Vihar, Phase I, New Delhi.
67. People’s Union For Democratic Right, Qr. No.
4, IP College, Delhi University, Delhi.
68. All India Insurance Employees Association, Calcutta.
69. All India National Life Insurance Employees Federation,
Bombay.
70. National Federation of Indian Railwaymen, New Delhi.
71. Institute of Indian Labour, Calcutta.
72. National Federation of Posts & Telegrah (Shashi
Bhushan Group), New Delhi.
73. Indian National Plantation Workers Federation Dibrugarh,
Assam.
74. Anand Marg, Calcutta.
75. Proutist Universal, New Delhi.
76. Volunteer Social Service, Allahabad.
77. Seva Dharam Mission, Varanasi, U.P.
78. Education Relief and Welfare Sector, Panditya Road,
Calcutta.
79. Anand Marg Universal Relief Team, Calcutta.
80. Universal Proutists Student Federation, New Delhi.
81. Jamat –e- Islami Hind, Dawat Nagar Abdul Fazal
Enclave, Okhla, N. Delhi.
82. Rashtriya Swayam Sewak Sangh, Hedgewar Bhavan, Nagapur.
83. Shiromani Gurudwara Prabhandak Committee, Golden
Temple, Amritsar.
84. Delhi Gurudwara Prabhandak Committee, Mata Sundri
Lane, New Delhi.
85. Anjuman Nasrat-UI-Islam, Srinagar.
86. Jammu & Kashmir Muslim Auqaf Trust, Zero Brigade,
Srinagar.
87. Jammu & Kashmir Muslim Auqaf Trust, Srinagar.
88. All India Peace and Solidarity Organisation, K. 1/16,
Chitranjan Park, Main Road, New Delhi.
89. Indian Society for Cultural Co-operation and Friendship
(ISCUF/CPI), 1, Lady Harding Road, Opp. Marina Hotel,
Connaught Palace, New Delhi.
90. All Indo Korean Friendship Association, New Delhi.
91. Indo-China Friendship Association, New Delhi.
92. National Federation of Progressive Writers, 110,
Kansal Bhawan, K.G. Marg, New Delhi.
93. Revoked vide SO.824(E).
94. Iranian Students Islamic Association (ISIA) or Union
of Iranian Students Islamic Association (UISIA), Bangalore.
95. Indian Youth Congress (I), New Delhi.
96. National Students Union of India (I), 5, Raisina
Road, New Delhi.
97. Yuva Janata, New Delhi.
98. Janata Yuva Morcha, New Delhi.
99. Tamir –e- Millat, Hyderabad.
100. Student Islamic Movement in India (SIMI), 151-C,
Zakir Nagar, New Delhi.
101. Student Islamic movement In India (SIMI), Aligarh.
102. Mahase –e- Azadi, J&K.
103. Jammat Ahle-e-Hadis, J&K.
104. Rashtra Sevika Samiti, Wardha, Maharashtra.
105. Vishwa Hindu Parishad (VHP), Bombay.
106. Hind Mazdoor Sabha, Bombay.
107. Yuva Lok Dal, 3 Pt. Pant Marg, New Delhi.
108. Dal Khalsa, Chandigarh.
109. Jamat Ahle Hadis or All India Ahle Hadis, 4116 Ahle
Hadis Manzil, Urdu Bazar, Delhi.
110. Jammat –e- Islami, Bulbul Bagullah.
111. Deeni Talimi Council, Lucknow.
112. Islamic Welfare Trust, PO Omessary, via Kottuwalli,
Calicut Distt.
113. Orissa Gramin Mazdoor Sangh, Santapur Bhubaneswar
Distt. Puri (Orissa).
114. All India Confederation of Bank Officer Organisations,
Pandyan House, Ferere Road, Bombay 38.
115. Iqbal Memorial Trust, Bemina, Srinagar, Kashmir.
116. All Assam Students Union, Gauhati University Campus,
Jhalukhari, Gauhati, Kamrup District, Assam.
117. Assam Jatiyabadi Yuba Chhatra Parishad, Silpukuri,
Gauhati, Assam.
118. All India Railway Employee Confederation, 26/12,
Railway Colony, Kishanganj, Delhi-7.
119. Kisan Seva Samiti, Chhatarpur, M.P.
120. Ishaat –e- Islam Trust, 1353, Chitli Qabar,
Delhi.
121. A.K. Gopalan Bhavan Trust, 27-29, Bhai Veer Singh
Marg, Gole Market.
122. Indian National Plantation Workers Federation, Suit
125, 25A, Park Street, Calcutta-16.
123. William Carey Study and Research Centre, Calcutta.
124. All India Agricultural Workers Union, 12 B, Feroze
Shah Road, New Delhi.
125. All India Democratic Women’s Association.
125A. All India Democratic Women’s Association,
23, Vithal Bhai Patel House, Rafi Marg, New Delhi.
126. All India Milli Council, 161/32, Joga Bhai, Jamia
Nagar, New Delhi-25.
127. All India Youth Leaque, 62 North Avenue, New Delhi.
128. Damdami Taksal, Gurudarshan Prakash, Chowk, Mehta,
New Delhi.
129. Akhand Kirtni Jatha.