Centre tightens FCRA and modifies 2011 guidelines by seven points; MHA files a notification

2 July, 2022 | Riya Girdhar

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Among them are two changes to Rule 6 where the phrases "one lakh rupees" are replaced with "10 lakh rupees" and the words "thirty days" are replaced with "three months."

The Foreign Contribution (Regulation) Act (FCRA) rules 2011 have undergone seven significant revisions by the central government with the goal of outlawing the acceptance and use of foreign contributions or foreign hospitality for any activities that are harmful to the interests of the country.

Foreign Contribution (Regulation) Amendment Laws, 2022, as the new rules are now known, went into force on Friday (July 1) after being published in the Official Gazette and being announced by the Ministry of Home Affairs (MHA). The 2011 Foreign Contribution (Regulation) Rules have been amended by the new regulations.

“The Central Government now promulgates the following regulations to further alter the Foreign Contribution (Regulation) Rules, 2011, in accordance with the authority granted by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010). The Foreign Contribution (Regulation) Amendment Rules, 2022, may be used to refer to these regulations “the announcement said.

There are around seven amendments in the new rules.

The terms “one lakh rupees” and “ten lakh rupees,” respectively, are replaced in rule 6 along with the words “thirty days” and “three months,” respectively.

Additionally, rule 9 has been modified. In sub-rule (1), clause (e), the words “fifteen days” shall be replaced with the phrases “forty-five days,” and in sub-rule (2), clause (e), the words “fifteen days” shall be replaced with the words “forty-five days.”

The new regulations do not include clause (b) of rule 13; in rule 17A, the words “forty-five days” shall be substituted for the words “fifteen days.”

The final change was made to Rule 20 and states that “in such form and manner, including in electronic form, as may be determined by the Central Government” shall be substituted for the words “on a plain paper.”

The primary regulations were first released on April 29, 2011, and they were subsequently changed on April 12, 2012, December 14, 2015, March 7, 2019, September 16, 2019, November 10, 2020, and January 11, 2021.

FCRA, 2010, unifies the laws governing the acceptance and utilisation of foreign contributions and hospitality by specific people, associations, or businesses. It also outlaws the acceptance and utilisation of such contributions and hospitality for any activities that are harmful to the national interest or for matters that are related to or incidental to those activities.

The Act is applicable to all of India as well as to Indian nationals living abroad. Companies or other legal entities formed or incorporated in India that have associate branches or subsidiaries outside of India are likewise subject to the Act’s regulations.

The FCRA controls foreign donations and makes sure they don’t have a negative impact on domestic security. It was first passed in 1976, but it underwent an amendment in 2010 when a number of new regulations regarding foreign donations were established.

All associations, groups, and NGOs that wish to accept foreign donations must comply with the FCRA. All of these NGOs are required by law to register with the FCRA.