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Grant of certificate of registration [ Section 12 ] - FCRA Ready Reckoner - FEMAExtract Grant of certificate of registration Application to Central Government [ Section 12(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. Requirement to open FCRA Account before made application for registration under section 12(1) [ Section 12(1A) ] Required to open FCRA Account in the manner specified in section 17 and mention details of such account in his application by the every person who make application under section 12(1). Reject the application if it not made according to manner prescribed [ Section 12(2) ] The Central Government shall may reject the application, if the application is not in the prescribed form or does not contain any of the particulars specified in that form. Time limit for Granting or rejecting application [ Section 12(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 section 12( 4 ) are satisfied, it may, ordinarily within ninety days from the date of receipt of application, 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: In case the Central Government does not grant, with in the said period of ninety days, a certificate or give prior permission, it shall communicate the reasons therefor to the applicant: 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. As per section 12(4) specified the condition for the purpose of section 12(3), namely:- ( a ) the person making an application for registration or grant of prior permission under section 12( 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 or 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 it sends; ( 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 has under taken reasonable activity in its chosen filed for the benefit of the society for which the foreign contribution is proposed to be utilised; As per rule 9(1)(f) of FC(R) Rule 2011 A person seeking registration under section 12(4)(b) of the Act shall meet the following conditions, namely: (i) it shall be in existence for three years and have spent a minimum amount of rupees fifteen lakh on its core activities for the benefit of society during the last three financial years. In exceptional cases or in cases where a person is controlled by the Central Government or a State Government may waive the conditions; (ii) if the person wants inclusion of its existing capital investment in assets like land, building, other permanent structures, vehicles, equipment in the computation of its spending during last three years, then the chief functionary shall give an undertaking that the assets shall be vested henceforth with the person till the validity of the certificate and they shall be utilised only for the activities covered under the Act and the rules made thereunder and shall not be diverted for any other purpose till the validity of its certificate of registration remains valid. ( 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; As per Rule 9(2)(f) of FC(R) Rules 2011 A person seeking prior permission for receipt of specific amount from a specific donor for carrying out specific activities or projects mentioned in section 12(4)(c) of the Act shall meet the following criteria, namely: (i) submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given; (ii) for the Indian recipient persons and foreign donor organisations having common members, prior permission shall be granted to the person subject to it satisfying the following conditions, namely: (A) the chief functionary of the recipient person shall not be a part of the donor organisation; (B) seventy-five per cent. of the office-bearers or members of the governing body of the person shall not be members or employees of the foreign donor organisation; (C) in case of foreign donor organisation being a single individual that individual shall not be the chief functionary or office bearer of the recipient person; and (D) in case of a single foreign donor, seventy-five per cent. of the office bearers or members of the governing body of the recipient person shall not be the family members or close relatives of the donor. ( 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 ) Central Government has overriding powers under section 9 of FCRA 2010 prohibit any organisation from accepting foreign contribution or to obtain prior permission 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 section 12( 1 ) ,- ( i ) shall not lead to incitement of an offence; ( ii ) shall not endanger the life or physical safety of any person. Per m i s s i o n for receipt of foreign contribution in application for obtaining prior permission. As per Rule 9A of the FC(R) Rules, 2011 If the value of foreign contribution on the date of final disposal of an application for obtaining prior permission is over rupees one crore, the Central Government may permit receipt of foreign contribution in such instalments, as it may deem fit. The second and subsequent instalment shall be released after submission of proof of utilisation of 75%. of the foreign contribution received in the previous instalment and after field inquiry of the utilisation of foreign contribution. Power of Central Government to require Aadhaar number, etc., as identification document [ Section 12A ] N ot w i t h s t a n di n g anything contained in this Act, the Central Government may require that any person who seeks a . prior permission or prior approval under section 11 , or b . makes an application for grant of certificate under section 12 , or, c . as the case may be, for renewal of certificate under section 16 , s h a l l p ro v i d e an identification document. F o r citizens of India, 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 shall be provided. I n case of a foreigner, a copy of the Passport or Overseas Citizen of India (OCI) Card shall be provided, Refusal the grant of certificate or prior permission [ Section 12(5) ] Where the Central Government refuses the grant of certificate or does not give prior permission, it shall record in its order the reasons therefore and furnish a copy thereof to the applicant: 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 is no obligation to give any information nor documents or records or papers under the Right to Information Act, 2005. Validity of certificate [ Section 12(6) read with rule 10 ] 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. [ Section 12(6) ] Every certificate or registration granted to a person under the Act shall be valid for a period of five years from the date of its issue. [ Rule 10(1) ] The validity of certificate surrendered under section 14A of the Act shall be deemed to have expired on the date of acceptance of the request by the Central Government. [ Rule 10(2) ] Maintenance of accounts [ Rule 11 ] Every person who has been granted registration or prior permission under section 12 shall maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilised
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