permission’ under FCRA
association or an organisation can receive foreign
contribution even without registration with prior permission
from the FCRA department. Foreign funds and materials
can only be received under two circumstances-
the organisation has obtained permanent registration
from the FCRA department.
the association or the organisation obtains prior permission
from the FCRA department on case to case basis.
prior permission will be required under the following
the organisation does not have permanent FCRA registration
the FCRA registration number has been cancelled by
the association is instructed by the Central Government
to take prior permission where power have been provided
to prohibit any organisation from receiving foreign
the FCRA number is suspended due to violation of the
provisions and conditions specified under the FCRA.
the organisation is of political nature, not being
a political party.
any person resident in India or any citizen of India
resident outside India, receiving foreign funds on
behalf of an organisation of political nature.
relevant statutory provisions: The expression of prior
permission appears in Section 11(2) and 11(3). The
relevant extract of Section 11(2) and 11(3 )is reproduced
as under :
(2) Every person referred to in sub-section (1) may, if it is not registered
with the Central Government under that sub-section, accept any foreign
contribution only after obtaining the prior permission of the Central Government
and such prior permission shall be valid for the specific purpose for which
it is obtained and from the specific source:
Provided that if the person referred to in sub-sections (1) and (2) has been
found guilty of violation of any of the provisions of this Act or the Foreign
Contribution (Regulation) Act, 1976, the unutilized or unreceived amount of
foreign contribution shall not be utilized or received, as the case may be,
without the prior approval of the Central Government.
Notwithstanding anything contained in this Act, the
Central Government may, by notification in the Official
the person or class of persons who shall obtain its
prior permission before accepting the foreign contribution;
(ii) the area or areas in which the foreign contribution shall be accepted
and utilized with the prior permission of the Central Government; or
(iii) the purpose or purposes for which the foreign contribution shall be utilized
with the prior permission of the Central Government; or
(iv) the source or sources from which the foreign contribution shall be accepted
with the prior permission of the Central Government.
for obtaining ‘prior permission’
Organisation is required to apply in Form FC-4 for
prior permission to the FCRA department along with
the following documents-:
Audited statement of accounts of past three years.
ii. Activities Report of past 3 years.
iii. If the association is a registered Trust or Society a certified copy of
the registration certificate.
iv. Copy of the Memorandum of Association and/or the Articles of Association
v. A copy of the latest commitment letter from the donor.
vi. A copy of the proposal / project which has been approved by the foreign
source for funding, including projected outlays, budget breakups.
vii. Details of names and addresses of the members of the Executive Committee/Governing
Council etc. of the Association.
viii. Copy of any prior permission granted to the organization.
ix. List of present members of the Governing Body of the organisation and the
x. Copy of any Journal or other publication of the organization.
xi. If the association is having any parent or sister or subsidiary organisation
which is registered under the FCRA then the registration number along with
Ministry of Home Affairs file number should be mentioned.
xii. If the association has submitted any application earlier then its reference
number should be mentioned.
xiii. If the association has received any foreign contribution with or without
the prior approval of the Central Government, then the detail should be given.
xiv. Details of Bank along through which the foreign contribution shall be
xv. A recommendation certificate from any competent authority, if any.
Copy of certificates of exemption or registration issued by the Income Tax
Department u/s 12A, if any
Limit for making application
application for prior permission under Form FC-4 can
be made any time after the legal constitution of an
organisation. Though clause 10 & 11 of Form FC-3
requires submission of details of activities of past
three years and three years audited statements. Where
the organisation is less than three years old, it can
submit the documents for lesser number of years as
may be available.
Permission for receiving Foreign Hospitality
FCRA, the following are prohibited from accepting foreign
hospitality except with prior permission:
member of a legislature
- office bearer of a political party
- Government servant or employee of any corporation
above-mentioned persons are required to apply in Form
FC-2 for availing any foreign hospitality. In this
Form, details regarding the nature of hospitality,
the approximate amount of expenses, the specific dates
and countries is required to be provided.
exceptional situation - Further, it has been provided
that no such prior permission would be necessary in
case of an emergency medical aid on account of a sudden
illness. In such cases, the person receiving such hospitality
can give, within one month from the date of receipt
of such hospitality, an intimation to the Central Government,
regarding the receipt of such hospitality and the source
and the manner in which such hospitality was received.
Section 6 and rule 7 are relevant in this regard.
Contribution (Regulation) Act, 2010 has clause in Form
FC-4 requiring the insertion of a certificate from
a competent authority. This certificate can be given
by any one of the following :
Collector of District
(2) Department of the Statement Government
(3) Ministry or Department of the Government of India
this certificate the competent authority certifies
the address and the field of activities in which the
organisation is working. It also states that there
are no adverse antecedents of the organisation, the
proposed activities will be beneficial to the people
living in that area and the detail of prior permission
if taken earlier.
FCRA department may ask the intelligence bureau for
a report. Some authorities from the intelligence bureau
may visit the office and the project area of the organisation
and inspect the books of account and other records
available. On the basis of the reports submitted by
the intelligence bureau the FCRA department decides
whether to accept or reject the application.
FCRA department issues a registration certificate and
provides a permanent registration number. This registration
number is required to be quoted in all future correspondences
and filling of returns and forms.
limit for granting ‘prior permission’
making inquiry, the Central Government may grant him
prior permission, ordinarily within ninety days from
the date of receipt of application.
case the Central Government does not grant, within
the said period of ninety days, prior permission, it
shall communicate the reasons there for to the applicant.
12(4)(a) states the grounds or the reasons on the basis
of which an application can be rejected. If the Central
Government after making the necessary inquiry is of
the opinion that the person making an application for
prior permission is fictitious or benami; has 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; has been prosecuted or convicted for creating
communal tension or disharmony in any specified district
or any other part of the country; has been found guilty
or diversion or mis-utilisation of its funds; is engaged
or likely to engage in propagation of sedition or advocate
violent methods to achieve its ends; is likely to use
the foreign contribution for personal gains or divert
it for undesirable purposes; has contravened any of
the provisions of this Act; has been prohibited from
accepting foreign contribution.
the Central Government refuses the grant of certificate,
it shall record in its order the reasons therefor and
furnish a copy to the applicant. The Central Government
may not communicate the reasons for refusal for grant
of certificate to the applicant in cases where is no
obligation to give any information or documents or
records or papers under the Right to Information Act,
an application is rejected and the applicant believes
that an unjust order was passed against him, then he
can appeal to High Court within a period of sixty days
from the date of the order of rejection. The period
of sixty days should be counted from the date of the
order and not the date of receipt of the order.
statutory provision - The provision for appeal is provided
as per section 31 which is an under:
Any organisation referred to in clause (f) of sub-section
(1) of section 3, or any person or association referred
to in section 6 or section 9, aggrieved by an order
made in pursuance of section 5 or by an order of the
Central Government refusing to give permission under
this Act, or by any order made by the Central Government
under sub-section (2) or sub-section (4) of section
12, or sub-section (1) of section 14, as the case may
be, may, within sixty days from the date of such order,
prefer an appeal against such order to the High Court
within the local limits of whose jurisdiction the appellant
ordinarily resides or carries on business or personally
works for gain, or, where the appellant is an organisation
or association, the principal office of such organisation
or association is located.
Every appeal preferred under this section shall be
deemed to be an appeal from an original decree and
the provisions of Order XLI of the First Schedule to
the Code of Civil Procedure, 1908, shall, as far as
may be, apply thereto as they apply to an appeal from
an original decree.