The Bill prohibits Foreign Contribution receipts in certain cases and at the same time also specifies Foreign Contribution receipts which are exempt from such prohibitions.

The Representative Organizations as well as the Committee has noted that the Bill does not specifically exclude the receipt of foreign scholarship or stipend by Indian citizens studying in India or foreign academic institutions, from the prohibitions contained in the Bill. The FCRA Act, 1976 had specific provisions in this regard. The Committee has recommended an amendment in the Bill so that it specifically excludes the foreign scholarship receipts from such prohibitions.

The Bill prohibits organizations of a Political nature from accepting Foreign Contribution. The power to declare an Organization to be one of a Political nature rests with the Central Government. The organization so declared may make a representation to Central Government within thirty days from the date of notice, giving reasons as to why it should not be declared an organization of Political nature. However, the Bill does not put any time-limit on Central Government by which they have to settle the representation. Also, there is no provision in the Bill that gives an organization a right to appeal against the decision of Central Government.

The Representative Organizations have therefore asked for the time bound post-decisional hearing after an organization is declared to be one of a Political nature. The Committee has recommended that a provision to appeal against decision given by Central Government in this regard be inserted and a time frame may be provided within which the Government has to take a decision in the cases where a representation is made by the organization.

The Bill prohibits acceptance of any Foreign Hospitality by member of a Legislature or a Judge or an office-bearer of a Political party or a Government Employee or employee of any other body controlled by Government, except with prior permission.

The Committee has recommended for a more clear definition on “Foreign Hospitality” which should state the status of person, i.e., in official or personal capacity. The Committee has therefore suggested that the words “when on official visit” should be added after the words “a person” in the definition of “Foreign Hospitality”. Likewise, the restriction on accepting foreign hospitality should apply when one is travelling to a foreign country in one’s official capacity.

One major concern raised by the Representative Organizations was that the Bill does not prescribe any time limit by which the Central Government has to dispose of an application for registration or prior permission. Also, the Bill requires the Certificate of registration to be renewed after every five years and an application for renewal should be made within six months before the expiry of period of certificate. However, no provision is made for the scenario where application for renewal is submitted but no intimation is received about renewal or refusal by the expiry date.

This has been dealt with in detail and the Committee has recommended that a period of ninety days may ordinarily be fixed for taking a decision on grant of certificate or giving prior permission. In case of delay, beyond the normal period of ninety days, the Central Government should record the reasons for delay. Likewise, the time limit of ninety days from the date of application made may be fixed for renewal of registration.