Paresh SardaChanges in FCRA penalties and compounding of offences
The Ministry of Home Affairs has issued two Notifications on 1st July 2022. These are:
Notification S.O. 3025 (E) - consist of list of offenses which can be compounded.
Notification GSR 506(E) - consist of changes in FCR Rules 2011. These are called as Foreign Contribution (Regulation) Amendment Rules 2022. (Click here to download)
A. As per the notification and circulars Penalties are increased / introduced for following events:
S.N. | Type of offence | Penalty before 1st July 2022 | Penalty After 1st July 2022 |
|---|---|---|---|
1 | Accepting foreign contribution without registration or prior-permission. | Rs.1,00,000 or 10% of the foreign contribution received, whichever is higher. | Rs.1,00,000 or 30% of the foreign contribution received, whichever is higher. |
2 | Failure to intimate about receipt of foreign contribution by an individual from his relative. (Intimation to be made within 90 days if the amount is more than Rs.10 lacs in a Financial year) | Rs. 10,000 | 5% of such foreign contribution received in a financial year. |
3 | Failure to intimate about opening of FCRA bank account or accounts within 45 days. | Not prescribed | Rs. 10,000 per utilisation account for failure to intimate within the prescribed time. |
4 | Failure to intimate about change in name, objects, object, address, board of the organization within 45 days. | Not prescribed | Rs. 10,000 for each violation of failure to intimate within the prescribed time. |
5 | Failure to place Annual FCRA Accounts on organization's website. | Not prescribed | Rs. 10,000 for each violation. |
B. Change in Time limit for compliances:
S.N. | Particulars (1) | Requirements before 1st July 2022 | After 1st July 2022 |
|---|---|---|---|
1 | Foreign Contribution received by an individual from a related foreigner | Need to be reported if it is more than Rs. 1,00,000 in a financial year. Reporting to be made in 30 days. | Need to be reported if it is more than Rs. 10,00,000 in a financial year. Reporting to be made in 90 days.` |
2 | Intimation for Opening FCRA utilization account (For registered as well as prior permission entities) | 15 days | 45 days |
3 | Quarterly filing of FC funds received | Required | Not Required |
4 | Change in Name, Address, Objects, FCRA Bank, Board changes | 15 days | 45 days |
C. The following list contains complete list of offences which can be compounded. The officer competent for compounding are also mentioned:
S.No. | Type of offence (4) | Penalty before 1st July 2022 | Penalty After 1st July 2022 | Officer competent for compounding |
|---|---|---|---|---|
1 | Offence punishable under section 35 for accepting foreign contribution in contravention of section 11 of the Act. |