Where the Central Government, for reasons to be recorded in writing, is satisfied that pending consideration of the question of cancelling the certificate on any of the grounds mentioned in sub-section (1) of section 14, it is necessary so to do, it may, by order in writing, suspend the certificate for such period not exceeding one hundred and eighty days as may be specified in the order. However, the Amended Act, 2020 states that the period of suspension can be further extended for a period of 180 days. In other words, the period of suspension can be extended to a period of 360 days from the date of the issue of the order.
Once the registration is suspended, the suspension proceedings have to be completed within the suspension period resulting in either cancellation or restoration of registration. During the suspension period the bank accounts of the organizations are freezed and virtually closed even before the completion of the proceedings.
Every person whose certificate has been suspended shall —
(a) Not receive any foreign contribution during the period of suspension of certificate: Provided that 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) Utilize, in the prescribed manner, the foreign contribution in his custody with the prior approval of the Central Government.
If the Central Government has any information/evidence about thefollowing, then a cancellation proceeding may be initiated preceded by suspension :
(a) the holder of the certificate has made a statement in, or in relation to, the application for the grant of registration orrenewal thereof, which is incorrect or false; or
(b) the holder of the certificate has violated any of the terms andconditions of the certificate or renewal thereof; or
(c) in the opinion of the Central Government, it is necessary in thepublic interest to cancel the certificate; or
(d) the holder of certificate has violated any of the provisions ofthis Act or rules or order made there under; or
(e) if the holder of the certificate has not been engaged in any reasonable activity in its chosen field for the benefit of thesociety for two consecutive years or has become defunct.
Every person whose certificate has been suspended shall not receive any foreign contribution during the period of suspension of certificate; such person can receive foreign contribution with prior permission only. 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;
Every person whose certificate has been suspended shall not utilise the foreign contribution in his custody without the prior approval of the Central Government.
In terms of Rule 14 of FCRR, 2011, in case the certificate of registration is suspended, then up to twenty-five per cent 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.
The remaining seventy-five per cent of the unutilised foreign contribution shall be utilised only after revocation of suspension of the certificate of registration.