Foreign Contribution (Regulation) (Amendment) Rules, 2020 - G.S.R. 695 (E) - Indian Law

MINISTRY OF HOME AFFAIRS NOTIFICATION New Delhi, the 10th November, 2020 G.S.R. 695(E). -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 , namely: - 1. Short title and commencement . - (1) These rules may be called the Foreign Contribution (Regulation) (Amendment) Rules, 2020. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the said rules), in rule 2 , in sub-rule (1), (i) after clause (b), the following clause shall be inserted, namely: (ba) electronic form shall have the same meaning assigned to it in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000); ; (ii) after clause (e), the following clause shall be inserted, namely:- (f) FCRA Account means the FCRA Account referred to in section 17 of the Act. 3. In the said rules , rule 3 shall be numbered as sub-rule (1) thereof, and after sub-rule (1) as so numbered, the following sub-rule shall be inserted, namely: (2) The organisations specified under clauses (v) and (vi) of sub-rule (1) shall be considered to be of political nature, if they participate in active politics or party politics, as the case may be. . 4. In the said rules , in rule 6 , for the words by uploading details electronically online , the words regarding the details of the foreign contribution received by him in electronic form shall be substituted. 5. In the said rules , in rule 7, in sub-rule (1), for the words electronically online to the Central Government , the words to the Central Government in electronic form shall be substituted. 6. In the said rules , in rule 9 , (i) in sub-rule (1) (A) in clause (a), for the words electronically online , at both places where they occur, the words in electronic form shall be substituted; (B) for clause (d), the following clause shall be substituted, namely:- (d) Any person making an application for registration under clause (a) of sub-rule (1) shall have an FCRA Account. ; (C) in clause (e), for the words electronically online , the words in electronic form shall be substituted; (D) after clause (e), the following clause shall be inserted, namely:- (f) A person seeking registration under clause (b) of sub-section (4) of section 12 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: Provided that the Central Government, 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. ; (ii) after sub-rule (1), the following sub-rule shall be inserted, namely: (1A) Every application seeking registration under clause (a) of sub-rule (1), made before the commencement of these rules but not disposed of, shall be considered after furnishing the details of FCRA Account. ; (iii) in sub-rule (2), (A) for clause (d), the following clause shall be substituted, namely:- (d) Any person making an application for obtaining prior permission under clause (a) of sub-rule (1) shall have an FCRA Account. ; (B) in clause (e), for the words electronically online , the words in electronic form shall be substituted; (C) after clause (e), the following clause shall be inserted, namely: (f) A person seeking prior permission for receipt of specific amount from a specific donor for carrying out specific activities or projects mentioned in clause (c) of sub-section (4) of section 12 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. ; (iv) after sub-rule (2), the following sub-rule shall be inserted, namely: (2A) Every application for obtaining prior permission under clause (a) of sub-rule (1) made before the commencement of these rules but not disposed of, shall be considered after furnishing the details of FCRA Account. ; (v) in sub-rule (4),- (A) for clause (a), the following clause shall be substituted, namely:- (a) An application made for the grant of prior permission shall be accompanied by a fee of rupees five thousand only, which shall be paid through the payment gateway specified by the Central Government. ; (B) for clause (b), the following clause shall be substituted, namely:- (b) An application made for the grant of registration shall be accompanied by a fee of rupees ten thousand only, which shall be paid through the payment gateway specified by the Central Government. ; (C) clause (d) shall be omitted. 7. In the said rules , after rule 9 , the following rule shall be inserted, namely: 9A. Permission for receipt of foreign contribution in application for obtaining prior permission. If the value of foreign contribution on the date of final disposal of an application for obtaining prior permission under clause (a) of sub-rule (1) of rule 9 is over rupees one crore, the Central Government may permit receipt of foreign contribution in such instalments, as it may deem fit: Provided that the second and subsequent instalment shall be released after submission of proof of utilization of seventy five per cent. of the foreign contribution received in the previous instalment and after field inquiry of the utilisation of foreign contribution. . 8. In the said rules , rule 10 shall be numbered as sub-rule (1) thereof, and after sub-rule (1) as so numbered, the following sub-rule shall be inserted, namely: (2) 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. . 9. In the said rules , in rule 12 , (i) for sub-rule (2), the following shall be substituted, namely:- (2) An application for renewal of the certificate of registration shall be made to the Central Government in electronic form in Form FC-3C accompanied with an affidavit executed by each office bearer, key functionary and member in Proforma AA appended to these rules within six months from the date of expiry of the certificate of registration. ; (ii) after sub-rule (2), the following shall be inserted, namely:- (2A) Every person seeking renewal of the certificate of registration under section 16 of the Act shall open an FCRA Account and mention details of the account in his application for renewal of registration. (2B) Every application for renewal of the certificate of registration made under sub-rule (2) before commencement of these rules, but not disposed of, shall be considered after furnishing the details of FCRA Account. ; (iii) for sub-rule (4), the following sub-rule shall be substituted, namely:- (4) An application made for renewal of the certificate of registration shall be accompanied by a fee of rupees five thousand only, which shall be paid through payment gateway specified by the Central Government. ; (iv) for sub-rule (5), the following sub-rule shall be substituted, namely:- (5) No person whose certificate of registration has ceased to exist shall either receive or utilise the foreign contribution until the certificate is renewed. ; (v) for sub-rule (6), the following sub-rule shall be substituted, namely:- (6) If no application for renewal of registration is received or the application is not accompanied by requisite fee before the expiry of the validity of the certificate of registration, the validity of the certificate of registration shall be deemed to have ceased from the date of completion of the period of five years from the date of the grant of certificate of registration. Note 1: A certificate of registration granted on the 1st January, 2012 shall be valid till the 31st December, 2016 and a request for renewal of certificate of registration shall be submitted in electronic form accompanied by requisite fee after the 30th June, 2016 and within the 31st December, 2016. Note 2 : If no application is received or is not accompanied by renewal fee, the validity of the certificate of registration issued on the 1st January 2012 shall be deemed to have ceased after the 31st December, 2016 and the applicant shall neither receive nor utilise the foreign contribution until the certificate of registration is renewed. ; (vi) after sub-rule (6), the following sub-rule shall be inserted, namely:- (6A) The amount of foreign contribution lying unutilised in the FCRA Account and utilisation account of a person whose certificate of registration is deemed to have ceased under sub-rule (6) and assets, if any, created out of the foreign contribution, shall vest with the prescribed authority under the Act until the certificate is renewed or fresh registration is granted by the Central Government. ; 10. In the said rules , for rule 15 , the following shall be substituted, namely:- 15. Custody of foreign contribution in respect of a person whose certificate has been cancelled. If the certificate of registration of a person who has opened an FCRA Account under section 17 is cancelled, the amount of foreign contribution lying unutilised in that Account shall vest with the prescribed authority under the Act. . 11. In the said rules , after rule 15 , the following rule shall be inserted, namely:- 15A. Voluntary surrender of certificate. - Every person who has been granted certificate of registration under section 12 of the Act may make an application in electronic form in Form FC-7 for surrender of the certificate of registration in terms of section 14A of the Act. . 12. In the said rules , in rule 17 , in sub-rule (1), for the words electronically online , the words in electronic form shall be substituted. 13. In the said rules , in rule 17A , (i) for the opening paragraph, the following paragraph shall be substituted, namely:- A person who has been granted a certificate of registration under section 12 or prior permission under section 11 of the Act shall intimate in electronic form within fifteen days, of any change in the following, namely:- ; (ii) for clause (iv), the following shall be substituted, namely:- (iv) office bearers or key functionaries or members mentioned in the application for grant of registration or prior permission or renewal of registration, as the case may be, in Form FC-6E. ; (iii) after clause (iv), the following proviso shall be inserted, namely:- Provided that the change shall be effective only after final approval by the Central Government. . 14. In the said rules , in rule 18 , after the word, letters and figure Form FC-1 , the word in electronic form shall be inserted. 15. In the said rules , for rule 20 , the following rule shall be substituted, namely:- 20. Revision. An application for revision of an order passed by the competent authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper and it shall be accompanied by a fee of rupees three thousand only, which shall be paid through the payment gateway specified by the Central Government. . 16. In the said rules , for rule 21 , the following rule shall be substituted, namely:- 21. Compounding of offence. An application for compounding of an offence under section 41 may be made to the Secretary, Ministry of Home Affairs, New Delhi in electronic form and shall be accompanied by fee of rupees three thousand only, which shall be paid through the payment gateway specified by the Central Government. . 17. In the said rules, in rule 23 , after the words registered post , the words or in electronic form shall be inserted. 18. In the said rules , rule 24 shall be omitted. 19. In the said rules , for the FORMS, the following FORMS shall be substituted, namely: [F. No. II/21022/23(12)/2020-FCRA-III] SANTOSH SHARMA, Director Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification number G.S.R. 349(E), dated the 29th April, 2011 and subsequently amended vide G.S.R. 292 (E), dated the 12th April, 2012, G.S.R. 966 (E), dated the 14th December, 2015, G.S.R. 199 (E), dated the 7th March, 2019 and G.S.R. 659 (E), dated the 16th September, 2019.