THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent, application and commencement. 
2.  Definitions. 

CHAPTER II 

REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY 

3.  Prohibition to accept foreign contribution. 
4.  Persons to whom section 3 shall not apply. 
5.  Procedure to notify an organisation of a political nature. 
6.  Restriction on acceptance of foreign hospitality. 
7.  Prohibition to transfer foreign contribution to other person. 
8.  Restriction to utilise foreign contribution for administrative purpose. 
9.  Power of Central Government to prohibit receipt of foreign contribution, etc., in certain cases. 
10.  Power to prohibit payment of currency received in contravention of the Act. 

CHAPTER III 

REGISTRATION 

11.  Registration of certain persons with Central Government. 
12.  Grant of certificate of registration. 
12A. Power of Central Government to require Aadhaar number, etc., as identification document. 
13.  Suspension of certificate. 
14.  Cancellation of certificate. 
14A. Surrender of certificate. 
15.  Management  of  foreign  contribution  of  person  whose  certificate  has  been  cancelled  or 

surrendered. 

16.  Renewal of certificate. 

CHAPTER IV 
ACCOUNTS, INTIMATION, AUDIT AND DISPOSAL OF ASSETS, ETC. 

17.  Foreign contribution through scheduled bank. 
18.  Intimation. 
19.  Maintenance of accounts. 
20.  Audit of accounts. 
21.  Intimation by candidate for election. 
22.  Disposal of assets created out of foreign contribution. 

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CHAPTER V 

INSPECTION, SEARCH AND SEIZURE 

SECTIONS 

23.  Inspection of accounts or records. 
24.  Seizure of accounts or records. 
25.  Seizure of article or currency or security received in contravention of the Act. 
26.  Disposal of seized article or currency or security. 
27.  Seizure to be made in accordance with Act 2 of 1974. 

CHAPTER VI 

ADJUDICATION 

28.  Confiscation of article or currency or security obtained in contravention of the Act. 
29.  Adjudication of confiscation. 
30.  Procedure for confiscation. 

CHAPTER VII 

APPEAL AND REVISION 

31.  Appeal. 
32.  Revision of orders by Central Government. 

CHAPTER VIII 

OFFENCES AND PENALTIES 

33.  Making of false statement, declaration or delivering false accounts. 
34.  Penalty for article or currency or security obtained in contravention of section 10. 
35.  Punishment for contravention of any provision of the Act. 
36.  Power to impose additional fine where article or currency or security is not available for 

confiscation. 

37.  Penalty for offences where no separate punishment has been provided. 
38.  Prohibition of acceptance of foreign contribution. 
39.  Offences by companies. 
40.  Bar on prosecution of offences under the Act. 
41.  Composition of certain offences. 

CHAPTER IX 

MISCELLANEOUS 

42.  Power to call for information or document. 
43.  Investigation into cases under the Act. 
44.  Returns by prescribed authority to Central Government. 
45.  Protection of action taken in good faith. 
46.  Power of Central Government to give directions. 
47.  Delegation of powers. 
48.  Power to make rules. 

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SECTIONS 

49.  Orders and rules to be laid before Parliament. 
50.  Power to exempt in certain cases. 
51.  Act not to apply to certain Government transactions. 
52.  Application of other laws not barred. 
53.  Power to remove difficulties. 
54.  Repeal and saving.  

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THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 

ACT NO. 42 OF 2010 

An Act to consolidate the law to regulate the acceptance and utilisation of foreign contribution or 
foreign  hospitality  by  certain  individuals  or  associations  or  companies  and  to  prohibit 
acceptance  and  utilisation  of  foreign  contribution  or  foreign  hospitality  for  any  activities 
detrimental to the national interest and for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:— 

[26th September, 2010.] 

CHAPTER I  

PRELIMINARY 

1.  Short  title,  extent,  application  and  commencement.—(1)  This  Act  may  be  called  the  Foreign 

Contribution (Regulation) Act, 2010. 

(2) It extends to the whole of India, and it shall also apply to— 

(a) citizens of India outside India; and 

(b) associate branches or subsidiaries, outside India, of companies or bodies corporate, registered 

or incorporated in India. 

(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in any such provision to the commencement of this Act shall be construed as a reference to the coming 
into force of that provision. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a)  “association”  means  an  association  of  individuals,  whether  incorporated  or  not,  having  an 
office in India and includes a society, whether registered under the Societies Registration Act, 1860 
(21 of 1860), or not, and any other organisation, by whatever name called; 

(b) “authorised person in foreign exchange” means an authorised person referred to in clause (c) 

of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); 

(c)  “bank”  means  a  banking  company  as  referred  to  in  clause  (c)  of  section  5  of  the  Banking 

Regulation Act, 1949 (10 of 1949); 

(d)  “candidate  for  election”  means  a  person  who  has  been  duly  nominated  as  a  candidate  for 

election to any Legislature; 

(e) “certificate” means certificate of registration granted under sub-section (3) of section 12; 

(f)  “company”  shall  have  the  meaning  assigned  to  it  under  clause  (17)  of  section  2  of  the  

Income-tax Act, 1961 (43 of 1961); 

1. 1st May, 2011, vide notification No. S.O. 909(E), dated 29th April, 2011, see Gazette of India, Extraordinary, Part II, sec. 3(ii). 

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(g)  “foreign  company”  means  any  company  or  association  or  body  of  individuals  incorporated 

outside India and includes— 

(i)  a  foreign  company  within  the  meaning  of  section  591  of  the  Companies  Act,  1956  

(1 of 1956); 

(ii) a company which is a subsidiary of a foreign company; 

(iii)  the  registered  office  or  principal  place  of  business  of  a foreign  company  referred  to  in 

sub-clause (i) or company referred to in sub-clause (ii); 

(iv) a multi-national corporation. 

Explanation.—For  the  purposes  of  this  sub-clause,  a  corporation  incorporated  in  a  foreign 

country or territory shall be deemed to be a multi-national corporation if such corporation,— 

(a) has a subsidiary or a branch or a place of business in two or more countries or territories; 

or 

(b) carries on business, or otherwise operates, in two or more countries or territories; 

(h) “foreign contribution” means the donation, delivery or transfer made by any foreign source,—  

(i) of any article, not being an article given to a person as a gift for his personal use, if the 
market value, in India, of such article, on the date of such gift, is not more than such sum as may 
be specified from time to time, by the Central Government by the rules made by it in this behalf; 

(ii) of any currency, whether Indian or foreign; 

(iii)  of  any  security  as  defined  in  clause  (h)  of  section  2  of  the  Securities  Contracts 
(Regulation) Act, 1956 (42 of 1956) and includes any foreign security as defined in clause (o) of 
section 2 of` the Foreign Exchange Management Act, 1999 (42 of 1999). 

Explanation  1.—A  donation,  delivery  or  transfer  of  any  article,  currency  or  foreign  security 
referred to in this clause by any person who has received it from any foreign source, either directly or 
through one or more persons, shall also be deemed to be foreign contribution within the meaning of 
this clause. 

Explanation 2.—The interest accrued on the foreign contribution deposited in any bank referred 
to  in  sub-section  (1)  of  section  17  or  any  other  income  derived  from  the  foreign  contribution  or 
interest thereon shall also be deemed to be foreign contribution within the meaning of this clause. 

Explanation 3.—Any amount received, by any person from any foreign source in India, by way 
of fee (including fees charged by an educational institution in India from foreign student) or towards 
cost in lieu of goods or services rendered by such person in the ordinary course of his business, trade 
or commerce whether within India or outside India or any contribution received from an agent of a 
foreign source towards such fee or cost shall be excluded from the definition of foreign contribution 
within the meaning of this clause; 

(i) “foreign hospitality” means any offer, not being a purely casual one, made in cash or kind by a 
foreign  source  for  providing  a  person  with the costs of travel  to  any  foreign  country  or territory  or 
with free boarding, lodging, transport or medical treatment; 

(j) “foreign source” includes,— 

(i) the Government of any foreign country or territory and any agency of such Government; 

(ii) any international agency, not being the United Nations or any of its specialised agencies, 
the World Bank, International Monetary Fund or such other agency as the Central Government 
may, by notification, specify in this behalf; 

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(iii) a foreign company; 

(iv) a corporation, not being a foreign company, incorporated in a foreign country or territory; 

(v) a multi-national corporation referred to in sub-clause (iv) of clause (g); 

(vi) a company within the meaning of the Companies Act, 1956 (1 of 1956), and more than 
one-half of the nominal value of its share capital is held, either singly or in the aggregate, by one 
or more of the following, namely:— 

(A) the Government of a foreign country or territory; 

(B) the citizens of a foreign country or territory; 

(C) corporations incorporated in a foreign country or territory; 

(D)  trusts,  societies  or  other  associations  of  individuals  (whether  incorporated  or  not), 

formed or registered in a foreign country or territory; 

(E) foreign company; 

(vii)  a  trade  union  in  any  foreign  country  or  territory,  whether  or  not  registered  in  such 

foreign country or territory; 

(viii)  a  foreign  trust  or  a  foreign  foundation,  by  whatever  name  called,  or  such  trust  or 

foundation mainly financed by a foreign country or territory; 

(ix) a society, club or other association of individuals formed or registered outside India; 

(x) a citizen of a foreign country; 

(k) “Legislature” means— 

(A) either House of Parliament; 

(B) the Legislative Assembly of a State, or in the case of a State having a Legislative Council, 

either House of the Legislature of that State; 

(C)  Legislative  Assembly  of  a  Union  territory  constituted  under  the  Government  of  Union 

Territories Act, 1963 (20 of 1963); 

(D)  Legislative  Assembly  for  the  National  Capital  Territory  of  Delhi  referred  to  in  the 

Government of National Capital Territory of Delhi Act, 1991 (1 of 1992); 

(E) Municipality as defined in clause (e) of article 243P of the Constitution; 

(F) District Councils and Regional Councils in the States of Assam, Meghalaya, Tripura and 

Mizoram as provided in the Sixth Schedule to the Constitution; 

(G) Panchayat as defined in clause (d) of article 243 of the Constitution; or 

(H) any other elective body as may be notified by the Central Government; 

(l) “notification” means notification published in the Official Gazette and the expression “notify” 

shall be construed accordingly; 

(m) “person” includes— 

(i) an individual; 

(ii) a Hindu undivided family; 

(iii) an association; 

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(iv) a company registered under section 25 of the Companies Act, 1956 (1 of 1956); 

(n) “political party” means— 

(i) an association or body of individual citizens of India— 

(A)  to  be  registered  with  the  Election  Commission  of  India  as  a  political  party  under 

section 29A of the Representation of the People Act, 1951 (43 of 1951); or 

(B) which has set up candidates for election to any Legislature, but is not so registered or 
deemed  to  be  registered  under  the  Election  Symbols  (Reservation  and  Allotment)  Order, 
1968; 

(ii) a political party mentioned in column 2 of Table 1 and Table 2 to the notification of the 
Election  Commission  of  India  No.  56/J&K/02,  dated  the  8th  August,  2002,  as  in  force  for  the 
time being; 

(o) “prescribed” means prescribed by rules made under this Act; 

(p)  “prescribed  authority”  means  an  authority  specified  as  such  by  rules  made  by  the  Central 

Government under this Act; 

(q)  “registered  newspaper”  means  a  newspaper  registered  under  the  Press  and  Registration  of 

Books Act, 1867 (25 of 1867); 

(r)  “relative”  has  the  meaning  assigned  to  it  in  clause  (41)  of  section  2  of  the  Companies  

Act, 1956 (1 of 1956); 

(s)  “scheduled  bank”  shall  have  the  meaning  assigned  to it  under clause  (e)  of section  2  of the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(t)  “subsidiary”  and  “associate”  shall  have  the  meanings,  respectively  assigned  to  them  in  the 

Companies Act, 1956 (1 of 1956); 

(u) “trade union” means a trade union registered under the Trade Unions Act, 1926 (16 of 1926); 

(2) Words and expressions used herein and not defined in this Act but defined in the Representation 
of the People Act, 1950 (43 of 1950) or the Representation of the People Act, 1951 (43 of 1951) or the 
Foreign Exchange Management Act, 1999 (42 of 1999) shall have the meanings respectively assigned to 
them in those Acts.  

REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY 

CHAPTER II 

3.  Prohibition  to  accept  foreign  contribution.—(1)  No  foreign  contribution  shall  be  accepted  by 

any— 

(a) candidate for election; 

(b)  correspondent,  columnist,  cartoonist,  editor,  owner,  printer  or  publisher  of  a  registered 

newspaper; 

1[(c)  public  servant,  Judge,  Government  servant  or  employee  of  any  corporation  or  any  other 

body controlled or owned by the Government;] 

(d) member of any Legislature; 

1. Subs. by Act 33 of 2020, s. 2, for clause (c) (w.e.f. 29-9-2020). 

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(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  
(21 of 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). 
1[Explanation.1—For the purpose of clause (c), "public servant" means a public servant as defined 

in section 21 of the Indian Penal Code (45 of 1860). 

Explanation 2.—In clause (c) and section 6, the expression "corporation" means a corporation owned 
or controlled by the Government and includes a Government company as defined in clause (45) of section 
2 of the Companies Act, 2013 (18 of 2013).] 

(2) (a) No person, resident in India, and no citizen of  India resident outside India, shall accept any 
foreign contribution, or acquire or agree to acquire any currency from a foreign source, on behalf of any 
political party, or any person referred to in sub-section (1), or both. 

(b) No person, resident in India, shall deliver any currency, whether Indian or foreign, which has been 
accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such 
other person intends, or is likely, to deliver such currency to any political party or any person referred to 
in sub-section (1), or both. 

(c) No citizen of India resident outside India shall deliver any currency, whether  Indian or foreign, 

which has been accepted from any foreign source, to— 

(i) any political party or any person referred to in sub-section (1), or both; or 

(ii)  any  other  person,  if  he  knows  or  has  reasonable  cause  to  believe  that  such  other  person 
intends,  or  is  likely,  to  deliver  such  currency  to  a  political  party  or  to  any  person  referred  to  in  
sub-section (1), or both. 

(3) No person receiving any currency, whether Indian or foreign, from a foreign source on behalf of 

any person or class of persons, referred to in section 9, shall deliver such currency— 

(a) to any person other than a person for which it was received, or 

(b)  to  any  other  person,  if  he  knows  or  has  reasonable  cause  to  believe  that  such  other  person 
intends,  or  is  likely,  to  deliver  such  currency  to  a  person  other  than  the  person  for  which  such 
currency was received. 

4. Persons to whom section 3 shall not apply.—Nothing contained in section 3 shall apply to the 
acceptance, by any person specified in that section, of any foreign contribution where such contribution is 
accepted by him, subject to the provisions of section 10,— 

(a) by way of salary, wages or other remuneration due to him or to any group of persons working 
under  him,  from  any  foreign  source  or  by  way  of  payment  in  the  ordinary  course  of  business 
transacted in India by such foreign source; or 

1. Explanation subs. by Act 33 of 2020, s. 2 (w.e.f. 29-9-2020). 

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(b) by way of payment, in the course of international trade or commerce, or in the ordinary course 

of business transacted by him outside India; or 

(c) as an agent of a foreign source in relation to any transaction made by such foreign source with 

the Central Government or State Government; or 

(d) by way of a gift or presentation made to him as a member of any Indian delegation, provided 
that such gift or present was accepted in accordance with the rules made by the Central Government 
with regard to the acceptance or retention of such gift or presentation; or 

(e) from his relative; or 

(f) by way of remittance received, in the ordinary course of business through any official channel, 
post office, or any authorised person in foreign exchange under the Foreign Exchange Management 
Act, 1999 (42 of 1999); or 

(g) by way of any scholarship, stipend or any payment of like nature: 

Provided that in case any foreign contribution received by any person specified under section 3, 
for  any  of  the  purposes  other  than  those  specified  under  this  section,  such  contribution  shall  be 
deemed to have been accepted in contravention of the provisions of section 3. 

5. Procedure to notify an organisation of a political nature.—(1) The Central Government may, 
having regard to the activities of the organisation or the ideology propagated by the organisation or the 
programme of the organisation or the association of the organisations with the activities of any political 
party,  by  an  order  published  in  the  Official  Gazette,  specify  such  organisation  as  an  organisation  of  a 
political nature not being a political party, referred to in clause (f) of sub-section (1) of section 3: 

Provided that the Central Government may, by rules made by it, frame the guidelines specifying the 

ground or grounds on which an organisation shall be specified as an organisation of a political nature. 

(2) Before making an order under sub-section (1), the Central Government shall give the organisation 
in respect of whom the order is proposed to be made, a notice in writing informing it of the ground or 
grounds,  on  which  it  is  proposed  to  be  specified  as  an  organisation  of  political  nature  under  that  
sub-section. 

(3) The organisation to whom a notice has been served under sub-section (2), may, within a period of 
thirty days from the date of the notice, make a representation to the Central Government giving reasons 
for not specifying such organisation as an organisation under sub-section (1): 

Provided  that  the  Central  Government  may  entertain  the  representation  after  the  expiry  of  the  said 
period of thirty days, if it is satisfied that the organisation was prevented by sufficient cause from making 
the representation within thirty days. 

(4) The Central Government may, if it considers it appropriate, forward the representation referred to 

in sub-section (3) to any authority to report on such representation. 

(5) The Central Government may, after considering the representation and the report of the authority 
referred to in sub-section (4), specify such organisation as an organisation of a political nature not being a 
political party and make an order under sub-section (1) accordingly. 

(6) Every order under sub-section (1) shall be made within a period of one hundred and twenty days 

from the date of issue of notice under sub-section (2): 

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Provided that in  case  no  order  is  made  within the  said  period  of  one  hundred  and  twenty  days, the 
Central  Government  shall,  after  recording  the  reasons  therefor,  make  an  order  under  sub-section  (1) 
within a period of sixty days from the expiry of the said period of one hundred and twenty days. 

6. Restriction on acceptance of foreign hospitality.—No member of a Legislature or office-bearer 
of  a  political  party  or Judge  or  Government  servant  or  employee  of  any  corporation or  any  other body 
owned or controlled by the Government shall, while visiting any country or territory outside India, accept, 
except with the prior permission of the Central Government, any foreign hospitality: 

Provided  that  it  shall  not  be  necessary  to  obtain  any  such  permission  for  an  emergent  medical  aid 
needed  on  account  of  sudden  illness  contracted  during  a  visit  outside  India,  but,  where  such  foreign 
hospitality has been received, the person receiving such hospitality shall give, within one month from the 
date  of  receipt  of  such  hospitality  an  intimation  to  the  Central  Government  as  to  the  receipt  of  such 
hospitality, and the source from which, and the manner in which, such hospitality was received by him. 

1[7. Prohibition to transfer foreign contribution to other person.—No person who— 

(a) is registered and granted a certificate or has obtained prior permission under this Act; and 

(b)  receives  any  foreign  contribution, shall  transfer  such  foreign  contribution  to  any  other 

person.] 

8. Restriction to utilise foreign contribution for administrative purpose.—(1) Every person, who 
is registered and granted a certificate or given prior permission under this Act and receives any foreign 
contribution,— 

(a) shall utilise such contribution for the purposes for which the contribution has been received: 

Provided  that  any  foreign  contribution  or  any  income  arising  out  of  it  shall  not  be  used  for 

speculative business: 

Provided  further  that  the  Central  Government  shall,  by  rules,  specify  the  activities  or  business 

which shall be construed as speculative business for the purpose of this section; 

(b)  shall  not  defray  as  far  as  possible  such  sum,  not  exceeding  2[twenty  per  cent.]  of  such 

contribution, received in a financial year, to meet administrative expenses: 

Provided that administrative expenses exceeding  2[twenty per cent.] of such contribution may be 

defrayed with prior approval of the Central Government. 

(2) The Central Government may prescribe the elements which shall be included in the administrative 
expenses  and  the  manner  in  which  the  administrative  expenses  referred  to  in  sub-section  (1)  shall  be 
calculated. 

9.  Power  of  Central  Government  to  prohibit  receipt  of  foreign  contribution,  etc.,  in  certain 

cases.—The Central Government may— 

(a)  prohibit  any  person  or  organisation  not  specified  in  section  3,  from  accepting  any  foreign 

contribution; 

(b) require any person or class of persons, not specified in section 6, to obtain prior permission of 

the Central Government before accepting any foreign hospitality; 

(c) require any person or class of persons not specified in section 11, to furnish intimation within 
such  time  and  in  such  manner  as  may  be  prescribed  as  to  the  amount  of  any  foreign  contribution 
received by such person or class of persons as the case may be, and the source from which and the 

1. Subs. by Act 33 of 2020, s. 3, for section 7 (w.e.f. 29-9-2020). 
2. Subs. by s. 4, ibid., for “fifty per cent.” (w.e.f. 29-9-2020). 

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manner in which such contribution was received and the purpose for which and the manner in which 
such foreign contribution was utilised; 

(d)  without  prejudice  to  the  provisions  of  sub-section  (1)  of  section  11,  require  any  person  or 
class  of  persons  specified  in  that  sub-section to  obtain  prior  permission  of  the Central  Government 
before accepting any foreign contribution; 

(e) require any person or class of persons, not specified in section 6, to furnish intimation, within 
such time and in such manner as may be prescribed, as to the receipt of any foreign hospitality, the 
source from which and the manner in which such hospitality was received: 

Provided that no such prohibition or requirement shall be made unless the Central Government is 
satisfied that the acceptance of foreign contribution by such person or class of persons, as the case 
may be, or the acceptance of foreign hospitality by such person, is likely to affect prejudicially— 

(i) the sovereignty and integrity of India; or 

(ii) public interest; or 

(iii) freedom or fairness of election to any Legislature; or 

(iv) friendly relations with any foreign State; or 

(v)  harmony  between  religious,  racial,  social,  linguistic  or  regional  groups,  castes  or 

communities. 

10.  Power  to  prohibit  payment  of  currency  received  in  contravention  of  the  Act.—Where  the 
Central Government is satisfied, after making such inquiry as it may deem fit, that any person has in his 
custody or control any article or currency or security, whether Indian or foreign, which has been accepted 
by such person in contravention of any of the provisions of this Act, it may, by order in writing, prohibit 
such person from paying, delivering, transferring or otherwise dealing with, in any manner whatsoever, 
such article or currency or security save in accordance with the written orders of the Central Government 
and  a  copy  of  such  order  shall  be  served  upon  the  person  so  prohibited  in  the  prescribed  manner,  and 
thereupon  the  provisions  of  sub-sections  (2),  (3),  (4)  and  (5)  of  section  7  of  the  Unlawful  Activities 
(Prevention)  Act,  1967  (37  of  1967)  shall,  so  far  as  may  be,  apply  to,  or  in  relation  to,  such  article  or 
currency  or  security  and  references  in  the  said  sub-sections  to  moneys,  securities  or  credits  shall  be 
construed as references to such article or currency or security. 

CHAPTER III 

REGISTRATION 

11. Registration of certain persons with Central Government.—(1) Save as otherwise provided in 
this Act, no person having a definite cultural, economic, educational, religious or social programme shall 
accept  foreign  contribution  unless  such  person  obtains  a  certificate  of  registration  from  the  Central 
Government: 

Provided that any association registered with the Central Government under section 6 or granted prior 
permission under that section of the Foreign Contribution (Regulation) Act, 1976 (49 of 1976), as it stood 
immediately before the commencement of this Act, shall be deemed to have been registered or granted 
prior permission, as the case may be, under this Act and such registration shall be valid for a period of 
five years from the date on which this section comes into force. 

(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 

11 

 
Central  Government  and  such  prior  permission  shall  be  valid  for  the  specific  purpose  for  which  it  is 
obtained and from the specific source: 

1[Provided that the Central Government, on the basis of any information or report, and after holding a 
summary  inquiry,  has  reason  to  believe  that  a  person  who  has  been  granted  prior  permission  has 
contravened any of the provisions of this Act, it may, pending any further inquiry, direct that such person 
shall not utilise the unutilised foreign contribution or receive the remaining portion of foreign contribution 
which  has  not  been  received  or,  as  the  case  may  be,  any  additional  foreign  contribution,  without  prior 
approval of the Central Government: 

Provided further that if the person referred to in sub-section (1) or in this sub-section has been found 
guilty]  of  violation  of  any  of  the  provisions  of  this  Act  or  the  Foreign  Contribution  (Regulation)  Act, 
1976  (49  of  1976),  the  unutilised  or  unreceived  amount  of  foreign  contribution  shall  not  be  utilised  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 utilised with the prior 

permission of the Central Government; or 

(iii)  the  purpose  or  purposes  for  which  the  foreign  contribution  shall  be  utilised  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. 

12. Grant of certificate of registration.—(1) An application by a person, referred to in section 11 
for grant of certificate or giving prior permission, shall be made to the Central Government in such form 
and manner and along with such fee, as may be prescribed. 

2[(1A) Every person who makes an application under sub-section (1) shall be required to open “FCRA 

Account” in the manner specified in section 17 and mention details of such account in his application.] 

(2) On receipt of an application under sub-section (1), the Central Government shall, by an order, if 
the application is not in the prescribed form or does not contain any of the particulars specified in that 
form, reject the application. 

(3) If on receipt of an application for grant of certificate or giving prior permission and after making 
such  inquiry  as  the  Central  Government  deems  fit,  it  is  of  the  opinion  that  the  conditions  specified  in  
sub-section (4) are satisfied, it may, ordinarily within ninety days from the date of receipt of application 
under sub-section (1), register such person and grant him a certificate or give him prior permission, as the 
case may be, subject to such terms and conditions as may be prescribed: 

Provided that in case the Central Government does not grant, within the said period of ninety days, a 

certificate or give prior permission, it shall communicate the reasons therefor to the applicant: 

Provided further that a person shall not be eligible for grant of certificate or giving prior permission, 
if his certificate has been suspended and such suspension of certificate continues on the date of making 
application. 

(4) The following shall be the conditions for the purposes of sub-section (3), namely:— 

1. Subs. by Act 33 of 2020, s. 5, for certain words (w.e.f. 29-9-2020). 
2. Ins. by s. 6, ibid. (w.e.f. 29-9-2020). 

12 

 
                                                           
(a)  the  person  making  an  application  for  registration  or  grant  of  prior  permission  under  

sub-section (1),— 

(i) is not fictitious or benami; 

(ii)  has  not  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; 

(iii)  has  not  been  prosecuted  or  convicted  for  creating  communal  tension  or  disharmony  in 

any specified district or any other part of the country; 

(iv) has not been found guilty of diversion or mis-utilisation of its funds; 

(v) is not engaged or likely to engage in propagation of sedition or advocate violent methods 

to achieve its ends; 

(vi) is not likely to use the foreign contribution for personal gains or divert it for undesirable 

purposes; 

(vii) has not contravened any of the provisions of this Act; 

(viii) has not been prohibited from accepting foreign contribution; 

(b)  the  person  making  an  application  for  registration  under  sub-section  (1)  has  undertaken 
reasonable activity in its chosen field for the benefit of the society for which the foreign contribution 
is proposed to be utilised; 

(c)  the  person  making  an  application  for  giving  prior  permission  under  sub-section  (1)  has 
prepared  a  reasonable  project  for  the  benefit  of  the  society  for  which  the  foreign  contribution  is 
proposed to be utilised; 

(d) in case the person being an individual, such individual has neither been convicted under any 

law for the time being in force nor any prosecution for any offence pending against him; 

(e)  in  case  the  person  being  other  than  an  individual,  any  of  its  directors  or  office  bearers  has 
neither been convicted under any law for the time being in force nor any prosecution for any offence 
is pending against him; 

(f) the acceptance of foreign contribution by the person referred to in sub-section (1) is not likely 

to affect prejudicially— 

(i) the sovereignty and integrity of India; or 

(ii) the security, strategic, scientific or economic interest of the State; or 

(iii) the public interest; or 

(iv) freedom or fairness of election to any Legislature; or 

(v) friendly relation with any foreign State; or 

(vi)  harmony  between  religious,  racial,  social,  linguistic,  regional  groups,  castes  or 

communities; 

(g) the acceptance of foreign contribution referred to in sub-section (1),— 

(i) shall not lead to incitement of an offence; 

(ii) shall not endanger the life or physical safety of any person. 

13 

 
(5) Where the Central Government refuses the grant of certificate or does not give prior permission, it 

shall record in its order the reasons therefor and furnish a copy thereof to the applicant: 

Provided  that  the  Central  Government  may  not  communicate  the  reasons  for  refusal  for  grant  of 
certificate or for not giving prior permission to the applicant under this section in cases where there is no 
obligation  to  give  any  information  or  documents  or  records  or  papers  under  the  Right  to  Information  
Act, 2005 (22 of 2005). 

(6) The certificate granted under sub-section (3) shall be valid for a period of five years and the prior 
permission shall be valid for the specific purpose or specific amount of foreign contribution proposed to 
be received, as the case may be. 

1[12A.  Power  of  Central  Government  to  require  Aadhaar  number,  etc.,  as  identification 
document.—Notwithstanding anything contained in this Act, the Central Government  may require that 
any person who seeks prior permission or prior approval under section 11, or makes an application for 
grant of certificate under section 12, or, as the case may be, for renewal of certificate under section 16, 
shall provide as identification document, the Aadhaar number of all its office bearers or Directors or other 
key  functionaries,  by  whatever  name  called,  issued  under  the  Aadhaar  (Targeted  Delivery  of  Financial 
and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016), or a copy of the Passport or Overseas 
Citizen of India Card, in case of a foreigner.] 

13.  Suspension  of  certificate.—(1)  Where  the  Central  Government,  for  reasons  to  be  recorded  in 
writing, is satisfied that pending consideration of the question of cancelling the certificate on any of the 
grounds mentioned in sub-section (1) of section 14, it is necessary so to do, it may, by order in writing, 
suspend  the  certificate  2[for  a  period  of  one  hundred  and  eighty  days,  or  such  further  period,  not 
exceeding one hundred and eighty days, as may be specified] in the order. 

(2) Every person whose certificate has been suspended shall— 

(a) not receive any foreign contribution during the period of suspension of certificate: 

Provided  that  the  Central  Government,  on  an  application  made  by  such  person,  if  it  considers 
appropriate, allow receipt of any foreign contribution by such person on such terms and conditions as 
it may specify; 

(b)  utilise,  in  the  prescribed  manner,  the  foreign  contribution  in  his  custody  with  the  prior 

approval of the Central Government. 

14.  Cancellation  of  certificate.—(1)  The  Central  Government  may,  if  it  is  satisfied  after  making 

such inquiry as it may deem fit, by an order, cancel the certificate if— 

(a) the holder of the certificate has made a statement in, or in relation to, the application for the 

grant of registration or renewal thereof, which is incorrect or false; or 

(b) the holder of the certificate has violated any of the terms and conditions of the certificate or 

renewal thereof; or 

(c) in the opinion of the Central Government, it is necessary in the public interest to cancel the 

certificate; or 

(d) the holder of certificate has violated any of the provisions of this Act or rules or order made 

thereunder; or 

(e) if the holder of the certificate has not been engaged in any reasonable activity in its chosen 

field for the benefit of the society for two consecutive years or has become defunct. 

1. Ins. by Act 33 of 2020, s. 7 (w.e.f. 29-9-2020). 
2. Subs. by s. 8, ibid., for “for such period not exceeding one hundred and eighty days as may be specified” (w.e.f. 29-9-2020). 

14 

 
                                                           
(2)  No  order  of  cancellation  of  certificate  under  this  section  shall  be  made  unless  the  person 

concerned has been given a reasonable opportunity of being heard. 

(3)  Any  person  whose  certificate  has  been  cancelled  under  this  section  shall  not  be  eligible  for 
registration or grant of prior permission for a period of three years from the date of cancellation of such 
certificate. 

1[14A. Surrender of certificate.—On a request being made in this behalf, the Central Government 
may permit any person to surrender the certificate granted under this Act, if, after making such inquiry as 
it deems fit, it is satisfied that such person has not contravened any of the provisions of this Act, and the 
management of foreign contribution and asset, if any, created out of such contribution has been vested in 
the authority as provided in sub-section (1) of section 15.] 

15.  Management  of  foreign  contribution  of  person  whose  certificate  has  been  cancelled  2[or 
surrendered].—(1)  The  foreign  contribution  and  assets  created  out  of  the  foreign  contribution  in  the 
custody  of  every  person  whose  certificate  has  been  cancelled  under  section  14  2[or  surrendered  under 
section 14A] shall vest in such authority as may be prescribed. 

(2) The authority referred to in sub-section (1) may, if it considers necessary and in public interest, 
manage the activities of the person referred to in that sub-section for such period and in such manner, as 
the Central Government may direct and such authority may utilise the foreign contribution or dispose of 
the assets created out of it in case adequate funds are not available for running such activity. 

(3)  The  authority  referred  to  in  sub-section  (1)  shall  return  the  foreign  contribution  and  the  assets 
vested  upon  it  under  that  sub-section  to the  person  referred  to  in  the  said  sub-section  if  such  person  is 
subsequently registered under this Act. 

16. Renewal of certificate.—(1) Every person who has been granted a certificate under section 12 

shall have such certificate renewed within six months before the expiry of the period of the certificate. 

3[Provided that the Central Government may, before renewing the certificate, make such inquiry, as it 
deems  fit,  to  satisfy  itself  that  such  person  has  fulfilled  all  conditions  specified  in  sub-section  (4)  of 
section 12.] 

(2) The  application  for renewal  of  the  certificate  shall  be  made  to  the  Central Government  in  such 

form and manner and accompanied by such fee as may be prescribed. 

(3) The Central Government shall renew the certificate, ordinarily within ninety days from the date of 
receipt of application for renewal of certificate subject to such terms and conditions as it may deem fit and 
grant a certificate of renewal for a period of five years: 

Provided that in case the Central Government does not renew the certificate within the said period of 

ninety days, it shall communicate the reasons therefor to the applicant: 

Provided  further  that  the  Central  Government  may  refuse  to  renew  the  certificate  in  case  where  a 

person has violated any of the provisions of this Act or rules made thereunder. 

1. Ins. by Act 33 of 2020, s. 9 (w.e.f. 29-9-2020). 
2. Ins. by s. 10, ibid. (w.e.f. 29-9-2020). 
4. The proviso ins. by s. 11, ibid. (w.e.f 29-9-2020). 

15 

 
 
 
                                                           
CHAPTER IV 

ACCOUNTS, INTIMATION, AUDIT AND DISPOSAL OF ASSETS, ETC. 

1[17.  Foreign  contribution  through  scheduled  bank.—(1)  Every  person  who  has  been  granted 
certificate  or  prior  permission  under  section  12  shall  receive  foreign  contribution  only  in  an  account 
designated as "FCRA Account" by the bank, which shall be opened by him for the purpose of remittances 
of  foreign  contribution  in  such  branch  of  the  State  Bank  of  India  at  New  Delhi,  as  the  Central 
Government may, by notification, specify in this behalf: 

Provided that such person may also open another “FCRA Account” in any of the scheduled bank of 
his choice for the purpose of keeping or utilising the foreign contribution which has been received from 
his “FCRA Account” in the specified branch of State Bank of India at New Delhi: 

Provided  further  that  such  person  may  also  open  one  or  more  accounts  in  one  or  more  scheduled 
banks of his choice to which he may transfer for utilising any foreign contribution received by him in his 
“FCRA  Account”  in  the  specified  branch  of  the  State  Bank  of  India  at  New  Delhi  or  kept  by  him  in 
another “FCRA Account” in a scheduled bank of his choice: 

Provided also that no funds other than foreign contribution shall be received or deposited in any such 

account. 

(2) The specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank 
where  the  person  referred  to  in  sub-section  (1)  has  opened  his  foreign  contribution  account  or  the 
authorised person in foreign exchange, shall report to such authority as may be specified— 

(a) the prescribed amount of foreign remittance; 

(b) the source and manner in which the foreign remittance was received; and 

(c) other particulars, in such form and manner as may be prescribed.] 

 18. Intimation.—(1) Every person who has been granted a certificate or given prior approval under 
this  Act  shall  give,  within  such  time  and  in  such  manner  as  may  be  prescribed,  an  intimation  to  the 
Central Government, and such other authority as may be specified by the Central Government, as to the 
amount of each foreign contribution received by it, the source from which and the manner in which such 
foreign  contribution  was  received,  and  the  purposes  for  which,  and  the  manner  in  which  such  foreign 
contribution was utilised by him. 

(2) Every person receiving foreign contribution shall submit a copy of a statement indicating therein 
the particulars of foreign contribution received duly certified by officer of the bank or authorised person 
in  foreign  exchange  and  furnish  the  same  to  the  Central  Government  along  with  the  intimation  under  
sub-section (1). 

19.  Maintenance  of  accounts.—Every  person  who  has  been  granted  a  certificate  or  given  prior 

approval under this Act shall maintain, in such form and manner as may be prescribed,— 

(a) an account of any foreign contribution received by him; and 

(b) a record as to the manner in which such contribution has been utilised by him. 

20.  Audit  of  accounts.—Where  any  person  who  has  been  granted  a  certificate  or  given  prior 
permission,  fails  to  furnish  any  intimation  under  this  Act  within  the  time  specified  therefor  or  the 
intimation so furnished is not in accordance with law or if, after inspection of such intimation, the Central 
Government  has  any  reasonable  cause  to  believe  that  any  provision  of  this  Act  has  been,  or  is  being, 
contravened,  the  Central  Government  may,  by  general  or  special  order,  authorise  such  gazette  officer, 
holding a Group A post under the Central Government or any other officer or authority or organisation, as 

1. Subs. by Act 33 of 2020, s. 12, for section 17 (w.e.f. 29-9-2020). 

16 

 
                                                           
it may think fit, to audit any books of account kept or maintained by such person and thereupon every 
such officer shall have the right to enter in or upon any premises at any reasonable hour, before sunset and 
after sunrise, for the purpose of auditing the said books of account: 

Provided  that  any  information  obtained  from  such  audit  shall  be  kept  confidential  and  shall  not  be 

disclosed except for the purposes of this Act. 

21.  Intimation  by  candidate  for  election.—Every  candidate  for  election,  who  had  received  any 
foreign contribution, at any time within one hundred and eighty days immediately preceding the date on 
which he is duly nominated as such candidate, shall give, within such time and in such manner as may be 
prescribed, an intimation to the Central Government or prescribed authority or both as to the amount of 
foreign  contribution  received  by  him,  the  source  from  which,  and  the  manner  in  which,  such  foreign 
contribution was received and the purposes for which and the manner in which such foreign contribution 
was utilised by him. 

22. Disposal of assets created out of foreign contribution.—Where any person who was permitted 
to accept foreign contribution under this Act, ceases to exist or has become defunct, all the assets of such 
person shall be disposed of in accordance with the provisions contained in any law for the time being in 
force  under  which  the  person  was  registered  or  incorporated,  and  in  the  absence  of  any  such  law,  the 
Central  Government  may,  having  regard  to  the  nature  of  assets  created  out  of  foreign  contribution 
received  under  this  Act,  by  notification,  specify  that  all  such  assets  shall  be  disposed  off  by  such 
authority, as it may specify, in such manner and procedure as may be prescribed. 

CHAPTER V 

INSPECTION, SEARCH AND SEIZURE 

23.  Inspection  of  accounts  or  records.—If  the  Central  Government  has,  for  any  reason,  to  be 
recorded in writing, any ground to suspect that any provision of this Act has been or is being, contravened 
by— 

(a) any political party; or 

(b) any person; or 

(c) any organisation; or 

(d) any association, 

it  may,  by  general  or  special  order,  authorise  such  gazetted  officer,  holding  a  Group  A  post  under  the 
Central  Government  or  such  other  officer  or  authority  or  organisation,  as  it  may  think  fit  (hereinafter 
referred to as the inspecting officer), to inspect any account or record maintained by such political party, 
person, organisation or association, as the case may be, and thereupon every such inspecting officer shall 
have the right to enter in or upon any premises at any reasonable hour, before sunset and after sunrise, for 
the purpose of inspecting the said account or record. 

24.  Seizure  of  accounts  or  records.—If,  after  inspection  of  an  account  or  record  referred  to  in 
section 23, the inspecting officer has any reasonable cause to believe that any provision of this Act or of 
any other law relating to foreign exchange has been, or is being, contravened, he may seize such account 
or record and produce the same before the court, authority or tribunal in which any proceeding is brought 
for such contravention: 

Provided that the authorised officer shall return such account or record to the person from whom it 
was  seized  if  no  proceeding  is  brought  within  six  months  from  the  date  of  such  seizure  for  the 
contravention disclosed by such account or record. 

17 

 
25.  Seizure  of  article  or  currency  or  security  received  in  contravention  of  the  Act.—If  any 
gazetted officer, authorised in this behalf by the Central Government by general or special order, has any 
reason to believe that any person has in his possession or control any article exceeding the value specified 
in  sub-clause (i)  of clause (h)  of  sub-section  (1)  of  section  2 or currency  or  security  whether  Indian  or 
foreign,  in  relation to  which  any  provision of this  Act  has  been  or is  being,  contravened,  he  may  seize 
such article or currency or security. 

26. Disposal of seized article or currency or security.—(1) The Central Government, may, having 
regard  to  the  value  of  article  or  currency  or  security,  their  vulnerability  to  theft  or  any  relevant 
consideration, by notification, specify such article or currency or security which shall, as soon as may be 
after their seizure, be disposed of by such officer and in such manner, as the Central Government may, 
from time to time, determine after following the procedure hereinafter specified. 

(2) The article or currency or security seized shall be forwarded without unnecessary delay to such 

officer as may be specified. 

(3)  Where  any  article  or  currency  or  security  has  been  seized  and  forwarded  to  such  officer,  the 
officer  referred  to  in  sub-section  (1),  shall  prepare  an  inventory  of  such  article  or  currency  or  security 
containing  such  details  relating  to  their  description,  value  or  such  other  identifying  particulars  as  the 
officer referred to in that sub-section may consider relevant to the identity of the article or the currency or 
security and make an application to any Magistrate for the purposes of certifying the correctness of the 
inventory so prepared. 

(4) Where an application is made under sub-section (2), the Magistrate shall, as soon as may be, allow 

the application. 

(5) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872) or the Code of 
Criminal  Procedure,  1973  (2  of  1974),  every  court  trying  an  offence  under  this  Act,  shall  treat  the 
inventory, as certified by the Magistrate, as primary evidence in respect of such offence. 

(6) Every officer acting under sub-section (3) shall forthwith report the seizure to the Court of Session 

or Assistant Sessions Judge having jurisdiction for adjudging the confiscation under section 29. 

27. Seizure to be made in accordance with Act 2 of 1974.—The provisions of the Code of Criminal 
Procedure, 1973  shall  apply  in  so  far as  they  are  not  inconsistent  with  the  provisions  of  this  Act  to  all 
seizures made under this Act. 

CHAPTER VI 

ADJUDICATION 

28. Confiscation of article or currency or security obtained  in contravention of the Act.—Any 
article  or  currency  or  security  which  is  seized  under  section  25  shall  be  liable  to  confiscation  if  such 
article or currency or security has been adjudged under section 29 to have been received or obtained in 
contravention of this Act. 

29.  Adjudication  of  confiscation.—(1)  Any  confiscation  referred  to  in  section  28  may  be 

adjudged— 

(a) without limit, by the Court of Session within the local limits of whose jurisdiction the seizure 

was made; and 

(b) subject to such limits as may be prescribed, by such officer, not below the rank of an Assistant 
Sessions Judge, as the Central Government may, by notification in the Official Gazette, specify in this 
behalf. 

18 

 
(2)  When  an  adjudication  under  sub-section  (1)  is  concluded  by  the  Court  of  Session  or  Assistant 
Sessions Judge, as the case may be, the Sessions Judge or Assistant Sessions Judge may make such order 
as he thinks fit for the disposal by confiscation or delivery of seized article or currency or security, as the 
case may be, to any person claiming to be entitled to possession thereof or otherwise, or which has been 
used for the commission of any offence under this Act. 

30.  Procedure  for  confiscation.—No  order  of  adjudication  of  confiscation  shall  be  made  unless  a 
reasonable opportunity of making a representation against such confiscation has been given to the person 
from whom any article or currency or security has been seized. 

CHAPTER VII 

APPEAL AND REVISION 

31. Appeal.—(1) Any person aggrieved by any order made under section 29 may prefer an appeal,— 

(a)  where  the  order  has  been  made  by  the  Court  of  Session,  to  the  High  Court  to  which  such 

Court is subordinate; or 

(b) where the order has been made by any officer specified under clause (b) of sub-section (1) of 
section  29,  to  the  Court  of  Session  within  the  local  limits  of  whose  jurisdiction  such  order  of 
adjudication of confiscation was made, 

within one month from the date of communication to such person of the order: 

Provided that the appellate court may, if it is satisfied that the appellant was prevented by sufficient 
cause from preferring the appeal within the said period of one month, allow such appeal to be preferred 
within a further period of one month, but not thereafter. 

(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 (5 of 1908), 
shall, as far as may be, apply thereto as they apply to an appeal from an original decree. 

32.  Revision  of  orders  by  Central  Government.—(1)  The  Central  Government  may,  either  of  its 
own motion or on an application for revision by the person registered under this Act, call for and examine 
the record of any proceeding under this Act in which any such order has been passed by it and may make 
such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such 
order thereon as it thinks fit. 

(2)  The  Central  Government  shall  not  of  its  own  motion  revise  any  order  under  this  section  if  the 

order has been made more than one year previously. 

(3)  In  the  case  of  an  application  for  revision  under  this  section  by  the  person  referred  to  in  
sub-section  (1),  the  application  must  be  made  within  one  year  from  the  date  on  which  the  order  in 
question was communicated to him or the date on which he otherwise came to know of it, whichever is 
earlier: 

19 

 
Provided  that  the  Central  Government  may,  if  it  is  satisfied  that  such  person  was  prevented  by 
sufficient  cause  from  making  the  application  within  that  period,  admit  an  application  made  after  the 
expiry of that period. 

(4) The Central Government shall not revise any order where an appeal against the order lies but has 
not been made and the time within which such appeal may be made  has not expired or such person has 
not waived his right of appeal or an appeal has been filed under this Act. 

(5) Every application by such person for revision under this section shall be accompanied by such fee, 

as may be prescribed. 

Explanation.—An order by the Central Government declining to interfere shall, for the purposes of 

this section, be deemed not to be an order prejudicial to such person. 

CHAPTER VIII 

OFFENCES AND PENALTIES 

33. Making of false statement, declaration or delivering false accounts.—Any person, subject to 

this Act, who knowingly,— 

(a) gives false intimation under clause (c) of section 9 or section 18; or 

(b) seeks prior permission or registration by means of fraud, false representation or concealment 

of material fact, 

shall, on conviction by a court, be liable to imprisonment for a term which may extend to six months or 
with fine or with both. 

34. Penalty for article or currency or security obtained in contravention of section 10.—If any 
person,  on  whom  any  prohibitory  order  has  been  served  under  section  10,  pays,  delivers,  transfers  or 
otherwise  deals  with,  in  any  manner  whatsoever,  any  article  or currency  or  security,  whether  Indian  or 
foreign,  in  contravention  of  such  prohibitory  order,  he  shall  be  punished  with  imprisonment  for  a  term 
which may extend to three years, or with fine, or with both; and notwithstanding anything contained in 
the Code of Criminal Procedure, 1973 (2 of 1974), the court trying such contravention may also impose 
on the person convicted an additional fine equivalent to the market value of the article or the amount of 
the currency or security in respect of which the prohibitory order has been contravened by him or such 
part thereof as the court may deem fit. 

35. Punishment for contravention of any provision of the Act.—Whoever accepts, or assists any 
person, political party or organisation in accepting, any foreign contribution or any currency or security 
from a foreign source, in contravention of any provision of this Act or any rule or order made thereunder, 
shall  be  punished  with  imprisonment  for  a  term  which  may  extend  to  five  years,  or  with  fine,  or  with 
both. 

36.  Power  to  impose  additional  fine  where  article  or  currency  or  security  is  not  available  for 
confiscation.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), 
the court trying a person, who, in relation to any article or currency or security, whether Indian or foreign, 
does or omits to do any act which act or omission would render such article or currency or security liable 
to confiscation under this Act, may, in the event of the conviction of such person for the act or omission 
aforesaid, impose on such person a fine not exceeding five times the value of the article or currency or 
security or one thousand rupees, whichever is more, if such article or currency or security is not available 
for confiscation, and the fine so imposed shall be in addition to any other fine which may be imposed on 
such person under this Act. 

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37.  Penalty  for  offences  where  no  separate  punishment  has  been  provided.—Whoever  fails  to 
comply with any provision of this Act for which no separate penalty has been provided in this Act shall 
be punished with imprisonment for a term which may extend to one year, or with fine or with both. 

38. Prohibition of acceptance of foreign contribution.—Notwithstanding anything contained in this 
Act,  whoever,  having  been  convicted  of  any  offence  under  section  35  or  section  37,  in  so  far  as  such 
offence relates to the acceptance or utilisation of foreign contribution, is again convicted of such offence 
shall  not  accept  any  foreign  contribution  for  a  period  of  five  years  from  the  date  of  the  subsequent 
conviction. 

39.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  or  any  rule  or  order  made 
thereunder has been committed by a company, every person who, at the time the offence was committed, 
was in charge of, and was responsible to, the company for the conduct of the business of the company, as 
well  as  the  company,  shall  be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded 
against and punished accordingly: 

Provided that nothing contained in this sub-section shall render such person liable to any punishment 
if  he  proves  that  the  offence  was  committed  without  his  knowledge  or  that  he  had  exercised  all  due 
diligence to prevent the commission of such offence. 

(2)  Notwithstanding  anything  contained in  sub-section  (1),  where  an  offence  under  this  Act  or  any 
rule or  order  made  thereunder  has  been committed  by  a  company  and  it  is  proved  that  the  offence  has 
been committed  with the  consent  or  connivance  of, or  is attributable to any  neglect  on  the part  of, any 
director,  manager, secretary  or  other  officer  of  the  company,  such  director,  manager,  secretary  or other 
officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and 
punished accordingly. 

Explanation.—For the purposes of this section,— 

(a)  “company”  means  any  body  corporate  and  includes  a  firm,  society,  trade  union  or  other 

association of individuals; and 

(b) “director”, in relation to a firm, society, trade union or other association of individuals, means 
a  partner  in  the  firm  or  a  member  of  the  governing  body  of  such  society,  trade  union  or  other 
association of individuals. 

40. Bar on prosecution of offences under the Act.—No court shall take cognizance of any offence 
under this Act, except with the previous sanction of the Central Government or any officer authorised by 
that Government in this behalf. 

41.  Composition  of  certain  offences.—(1)  Notwithstanding  anything  contained  in  the  Code  of 
Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act (whether committed by an 
individual  or  association  or  any  officer  or  employee  thereof),  not  being  an  offence  punishable  with 
imprisonment  only,  may,  before  the  institution  of  any  prosecution,  be  compounded  by  such  officers  or 
authorities  and  for  such  sums  as  the  Central  Government  may,  by  notification  in  the  Official  Gazette, 
specify in this behalf. 

(2) Nothing in sub-section (1) shall apply to an offence committed by an individual or association or 
its  officer  or  other  employee  within  a  period  of  three  years  from  the  date  on  which  a  similar  offence 
committed by it or him was compounded under this section. 

Explanation.—For the purposes of this section, any second or subsequent offence committed after the 
expiry of a period of three years from the date on which the offence was previously compounded, shall be 
deemed to be a first offence. 

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(3) Every officer or authority referred to in sub-section (1) shall exercise the powers to compound an 

offence, subject to the direction, control and supervision of the Central Government. 

(4)  Every  application  for  the  compounding  of  an  offence  shall  be  made  to  the  officer  or  authority 

referred to in sub-section (1) in such form and manner along with such fee as may be prescribed. 

(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall 
be  instituted  in  relation  to  such  offence,  against  the  offender  in  relation  to  whom  the  offence  is  so 
compounded. 

(6)  Every  officer  or  authority  referred  to  in  sub-section  (1),  while  dealing  with  a  proposal  for  the 
compounding of an offence for a default in compliance with any provision of this Act which requires by 
an individual or association or its officer or other employee to obtain permission or file or register with, or 
deliver  or  send  to,  the  Central  Government  or  any  prescribed  authority  any  return,  account  or  other 
document, may, direct, by order, if he or it thinks fit to do so, any individual or association or its officer 
or other employee to file or register with, such return, account or other document within such time as may 
be specified in the order. 

CHAPTER IX 

MISCELLANEOUS 

42. Power to call for information or document.—Any inspecting officer referred to in section 23 
who is authorised in this behalf by the Central Government may, during the course of any inspection of 
any account or record maintained by any political party, person, organisation or association in connection 
with the contravention of any provision of this Act,— 

(a) call for information from any person for the purpose of satisfying himself whether there has 

been any contravention of the provisions of this Act or rule or order made thereunder; 

(b)  require  any  person  to  produce  or  deliver  any  document  or  thing  useful  or  relevant  to  such 

inspection; 

(c)  examine  any  person  acquainted  with  the  facts  and  circumstances  of  the  case  related  to  the 

inspection. 

43.  Investigation  into  cases  under  the  Act.—Notwithstanding  anything  contained  in  the  Code  of 
Criminal  Procedure,  1973 (2  of 1974),  any  offence  punishable  under  this  Act may  also  be investigated 
into by such authority as the Central Government may specify in this behalf and the authority so specified 
shall have all the powers which an officer-in-charge of a police station has while making an investigation 
into a cognizable offence. 

44.  Returns  by  prescribed  authority  to  Central  Government.—The  prescribed  authority  shall 
furnish to the Central Government at such time and in such form and manner such returns and statements 
as may be prescribed. 

45. Protection of action taken in good faith.—No suit or other legal proceedings shall lie against 
the Central Government or the authority referred to in section 44 or any of its officers in respect of any 
loss or damage caused or likely to be caused by anything which is in good faith done or intended to be 
done in pursuance of the provisions of this Act or, any rule or order made thereunder. 

46.  Power  of  Central  Government  to  give  directions.—The  Central  Government  may  give  such 
directions as it may deem necessary to any other authority or any person or class of persons regarding the 
carrying into execution of the provisions of this Act. 

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47.  Delegation  of  powers.—The  Central  Government  may,  by  notification,  direct  that  any  of  its 
powers or functions under this Act, except power to make rules under section 48, shall, in relation to such 
matters  and  subject  to  such  conditions,  if  any,  may  be  specified  in  the  notification,  be  exercised  or 
discharged also by such authority as may be specified. 

48.  Power  to  make  rules.—  (1)  The  Central  Government  may,  by  notification,  make  rules  for 

carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  value  of  the  article  which  may  be  specified  under  sub-clause  (i)  of  clause  (h)  of  

sub-section (1) of section 2; 

(b) the authority which may be specified under clause (p) of sub-section (1) of section 2; 

(c) acceptance or retention of gift or presentation under clause (d) of section 4; 

(d) guidelines specifying the ground or grounds on which an organisation may be specified as an 

organisation of political nature under sub-section (1) of section 5; 

(e) the activities or business which shall be construed as speculative business under the proviso to 

clause (a) of sub-section (1) of section 8; 

(f) the elements and the manner in which the administrative expenses shall be calculated under 

sub-section (2) of section 8; 

(g)  the  time  within  which  and  the  manner  in  which  any  person  or  class  of  persons  or  an 
association  may  be  required  to  furnish  intimation  regarding  the  amount  of  foreign  contribution 
received under clause (c) of section 9; 

(h)  the  time  within  which  and  the  manner  in  which  any  person  or  class  of  persons  may  be 

required to furnish intimation regarding foreign hospitality under clause (e) of section 9; 

(i) the manner in which the copy of the order of the Central Government shall be served upon any 

person under section 10; 

(j) the form and manner in which the application for grant of certificate of registration or giving 

of prior permission under sub-section (1) of section 12; 

(k) the fee to be accompanied by the application under sub-section (1) of section 12; 

(l) the terms and conditions for granting a certificate or giving prior permission under clause (g) 

of sub-section (4) of section 12; 

(m)  the  manner  of  utilising  the  foreign  contribution  under  clause  (b)  of  sub-section  (2)  of  

section 13; 

(n)  the  authority  with  whom  the  foreign  contribution  to  be  vested  under  sub-section  (1)  of  

section 15; 

(o) the period within which and the manner in which the foreign contribution shall be managed 

under sub-section (2) of section 15; 

(p) the form and manner in which the application for a renewal of certificate of registration shall 

be made under sub-section (2) of section 16; 

(q) the fee to be accompanied by the application for renewal of certificate under sub-section (2) of 

section 16; 

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(r)  the  prescribed  amount  of  foreign  remittance,  the  form  and  manner  in  which  the  foreign 
remittance received by every bank or authorised person in foreign exchange shall be reported under 
sub-section (2) of section 17; 

(s) the time within which and the manner in which the person who has been granted certificate of 

registration or given prior permission under this Act shall give intimation under section 18; 

(t) the form and manner in which account of any foreign contribution and the manner in which 

such contribution has been utilised shall be maintained under section 19; 

(u) the time within which and the manner in which a candidate for election shall give intimation 

under section 21; 

(v) the manner and procedure to be followed in disposing of the assets under section 22; 

(w)  the  limits  subject  to  which  any  confiscation  may  be  adjudged  under  clause  (b)  of  

sub-section (1) of section 29; 

(x) the fee to be accompanied along with every application for revision under sub-section (5) of 

section 32; 

(y) the form and manner for making of an application for compounding of an offence and the fee 

therefor under sub-section (4) of section 41; 

(z)  the  form  and  manner  in  which  and  the  time  within  which  returns  and  statements  to  be 

furnished by the prescribed authority under section 44; 

(za) any other matter which is required to be, or may be, prescribed. 

49. Orders and rules to be laid before Parliament.—Every order made under section 5 and every 
rule  made  by  the  Central Government  under  this  Act  shall  be  laid,  as  soon as may  be  after  it is  made, 
before  each  House  of  Parliament  while  it  is  in  session  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the order or rule or both Houses agree that the order or rule should not be made, the order 
or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, 
however, that any such modification or annulment shall be without prejudice to the validity of anything 
previously done under that order or rule. 

50. Power to exempt in certain cases.—If the Central Government is of opinion that it is necessary 
or expedient in the interests of the general public so to do, it may, by order and subject to such conditions 
as may be specified in the order, exempt any person or association or organisation (not being a political 
party),  or  any  individual  (not  being  a  candidate  for  election)  from  the  operation  of  all  or  any  of  the 
provisions of this Act and may, as often as may be necessary, revoke or modify such order. 

51.  Act  not  to  apply  to  certain  Government  transactions.—Nothing  contained  in  this  Act  shall 
apply to any transaction between the Government of India and the Government of any foreign country or 
territory. 

52. Application of other laws not barred.—The provisions of this Act shall be in addition to, and 

not in derogation of, the provisions of any other law for the time being in force. 

53. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 

24 

 
Provided  that  no  order  shall  be  made  under  this  section  after  the  expiry  of  two  years  from  the 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

54.  Repeal  and  saving.—(1)  The  Foreign  Contribution  (Regulation)  Act,  1976  (49  of  1976) 

(hereafter referred to as the repealed Act) is hereby repealed. 

(2) Notwithstanding such repeal,— 

(a) anything done or any action taken or purported to have been done or taken under the repealed 
Act shall, in so far as it is not inconsistent  with the provisions of this Act, be deemed to have been 
done or taken under the corresponding provisions of this Act; 

(b) any organisation of a political nature, not being a political party, to whom the prior permission 
was granted under section 5 of the repealed Act, shall continue to be the organisation of a political 
nature, not being a political party, under clause (f) of sub-section (1) of section 3 of this Act, till such 
permission is withdrawn by the Central Government; 

(c) permission to accept foreign hospitality granted under section 9 of the repealed Act shall be 
deemed to be the permission granted under section 6 of this Act until such permission is withdrawn 
by the Central Government; 

(d)  any  association  prohibited  from  accepting  any  foreign  contribution  under  clause  (a)  of  
section 10 of the repealed Act, in so far as it is not inconsistent with the provisions of this Act, shall 
be deemed to be an association prohibited from accepting any foreign contribution under section 9 of 
this Act; 

(e) permission obtained under clause (b) of section 10 of the repealed Act shall, in so far as it is 
not inconsistent with the provisions of this Act, be deemed to be the permission until such permission 
is withdrawn by the Central Government; 

(f) any order issued under section 12 of the repealed Act shall be deemed to be an order issued 

under section 10 of this Act; 

(g)  any  order  issued  under  section  31  of  the  repealed  Act  exempting  any  association  or  any 
individual  shall  be  deemed  to  be  an  order  under  section  50  of  this  Act  till  such  order  is  varied  or 
revoked. 

(3) Save as provided in sub-section (2), mention of particular matters in that sub-section shall not be 
held  to  prejudice  or  affect  the  general  application  of  section  6  of  the  General  Clauses  Act,  1897  
(10 of 1897), with regard to the effect of repeal. 

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