Maintaining FCRA Accounts and Utilisation by NGOs/Associations Without Valid Registration

Act Name/Rule Name: Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010)

Type of Document: Public Notice

Date: January 21, 2025

Circular No./Notification No.: No. II/21022/58(93)/2024-FCRA(MU)

The public notice issued by the Ministry of Home Affairs (MHA) clarifies the rules and penalties related to handling foreign contributions (FC) under the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010).

Key Points of the Notice:

  1. Proper Use of Foreign Contributions (FC):
    NGOs and associations can only use foreign contributions for the purposes they have declared at the time of registration. Using FC for other purposes is a violation of the law.
  2. Requirement of Valid Registration:
    • NGOs/associations must have valid FCRA registration or prior permission to accept or use foreign funds.
    • If an organisation’s FCRA certificate expires, gets cancelled, or is not renewed, they cannot receive or spend foreign contributions.
  3. Illegal Transactions Identified:
    The Ministry found instances where some NGOs/associations with invalid or expired registrations were still receiving and spending foreign contributions. This is a violation of the FCRA, 2010.
  4. Penalties for Violations:
    • Any foreign contribution received or used without a valid FCRA registration will be treated as a breach of the law.
    • Such violations can lead to legal action and penalties under the FCRA, 2010.
  5. Checking Registration Validity:
    The notice advises all concerned to check the validity of their FCRA registration on the FCRA Web Portal (https://fcraonline.nic.in) to avoid violations.
  6. Directive to Follow the Law:
    The MHA, using its authority under Section 46 of the Act, directs all NGOs/associations to strictly follow the provisions of the FCRA and the associated rules.

The notice serves as a reminder and a warning. It highlights that some organisations are not complying with the law by either continuing operations after their registration lapses or ignoring the renewal process.

  • NGOs and associations need to carefully monitor their FCRA registration status and ensure timely renewals.
  • Any lapse in compliance could lead to investigations, penalties, or even cancellation of registration.
  • The notice helps prevent misuse of foreign funds and reinforces the government’s control over how these funds are used in India.

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