FCRA gets more teeth with key amendments in 2011 rules

New Delhi, July 02: Giving more teeth to the existing Foreign Contribution (Regulation) Act (FCRA) rules 2011 the Centre has made seven key amendments. The FCRA is aimed at prohibiting acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to national interest.

The new rules have been renamed as Foreign Contribution (Regulation) Amendment Rules, 2022 and it came into effect from July 1, news agency ANI reported.

"In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following rules further to amend the Foreign Contribution (Regulation) Rules, 2011. These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2022," the notification read.

Two amendments have been made in rule 6 by substituting the words one lakh Rupees with the words ten lakh Rupees and the words thirty days with the words three months.

Amendments have also been made in rule 9 in sub rule (1) in clause (e) for the words fifteen days, the words forty five days shall be substituted. In sub-rule (2). In clause (e) for the words fifteen days, the words forty five days shall be substituted.

Claus (b) of rule 13 has been omitted from the fresh rules and in rule 17A for the words fifteen days, the words forty five days shall be substituted.

The last amendment has been done in rule 20 and it mentions that for the words, on a plain paper, the words in such form and manner, including in an electronic form as may be specified by the Central Government shall be substituted.

The Foreign Contribution (Regulation) Act (FCRA), 2010 consolidated 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 interest of the nation and for matters connected therewith or incidental thereto.

The FCRA which regulates foreign donations ensures that such contributions do not adversely affect internal security. It was first enacted in 1976 and was amended in 2010. The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is also mandatory for all such NGOs to register themselves under FCRA.