Suspension of certificate [ Section 13 ] - FCRA - Ready Reckoner - FEMA

Suspension of certificate Suspension of certificate [ Section 13(1) of FCRA, 2010 ] Circumstances when certificate may be suspended:- The central government while consideration cancellation of certificate on any ground mentioned in section 14(1) shall be satisfied that, it is necessary to suspend the certificate. Period of Suspension:- it may, by order in writing, suspend the certificate for a period of 180 days, or such further period, not exceeding one hundred and eighty days, as may be specified in the order. Effect of suspension :- Restriction on received or utilisation of foreign contribution [ Section 13(2) of FCRA, 2010 ] Every person whose certificate has been suspended shall- a ) not receive any foreign contribution during the period of suspension of certificate. Exception 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. c) As per second proviso of section 12(3), 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. Extent of amount that can be utilised in case of suspension of the certificate of registration. [ Rule 14 of FC(R) Rules 2011 ] The unspent amount that can be utilised in case of suspension of a certificate of registration may be as under: - (a) In case the certificate of registration is suspended under section 13(1) , up to 25% of the unutilised amount may be spent, with the prior approval of the Central Government, for the declared aims and objects for which the foreign contribution was received. (b) The remaining 75% of the unutilised foreign contribution shall be utilised only after revocation of suspension of the certificate of registration.