Changes in FCRA penalties and compounding of offences

The Ministry of Home Affairs has issued two Notifications on 1st July 2022. These are:


  1. Notification S.O. 3025 (E) - consist of list of offenses which can be compounded.

  2. 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.

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.

Director, or as the case may be, the Deputy Secretaryin-charge of the section responsible for the administration of the Act.

2

Offence punishable under section 37 for non-furnishing of intimation of the amount of each foreign contribution received and the source from which and in the manner in which, such foreign contribution is received as required under section 18 of the Act.

Rs.1,00,000 or 5% of the foreign contribution received during the period of non submission, whichever is higher​

Rs. 1,00,000 or 5% of the foreign contribution received during the period of non submission, whichever is higher.

Director, or as the case may be, the Deputy Secretaryin-charge of the section responsible for the administration of the Act.​

3

Offence punishable under sections 3, 11 and 35 of the Act read with rule 6 for failure to intimate about receipt of foreign contribution within the prescribed time limit.

Rs. 1,00,000 or 5% of the foreign contribution during the relevant period of non- maintenance of accounts, whichever is higher.

5% of such foreign contribution received in a financial year.

The Director, or as the case may be, the Deputy Secretary in- charge of the section responsible for the administration of the Act.

4

Offence punishable under section 37, section 17 and section 19 of the Act read with clause (e) of sub-rule (1) of rule 9

for failure to intimate about opening of account or accounts within the prescribed time.

Not prescribed

Rs. 10,000 per

utilisation account for

failure to intimate within

the prescribed time.

5

Offence punishable under section 37, section 17 and section 19 of the Act read with clause (e) of sub-rule (2) of rule 9 for failure to intimate about opening of account or accounts within the prescribed time.

Not prescribed

Rs. 10,000 per

utilisation account for

failure to intimate within

the prescribed time.

The Director, or as the case may

be, the Deputy Secretary incharge

of the section responsible

for the administration of the Act.​

6

Offence punishable under section 37, section 11 and section 17 of the Act read with rule 17A, for failure to intimate about details within the prescribed time.

Not prescribed

Rs. 10,000 for

each violation of failure to

intimate within the

prescribed time.

The Director, or as the case may

be, the Deputy Secretary incharge

of the section responsible

for the administration of the Act.

7

Offence punishable under section 37 and section 19 of the Act read with rule 13, for failure to place on website as prescribed in clause (a) of rule 13 within the prescribed time.

Not prescribed

Rs. 10,000 for

each violation.​

The Director, or as the case may

be, the Deputy Secretary incharge

of the section responsible

for the administration of the Act.

8

Any specified person accepting foreign hospitality without permission from Government.

Rs.10,000

Rs. 10,000

Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.​

9

Transferring any foreign contribution to any other person in contravention of section 7 of the Act or any rule made thereunder.


Provided that transfer of foreign contribution (inclusive of more than one instances of transfer, if any) shall be compoundable only once.

Rs. 1,00,000 or 10% of such transferred foreign contribution, whichever is higher.​

Rs. 1,00,000 or 10% of such transferred foreign contribution, whichever is higher.

Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.

10

Defraying of foreign contribution beyond twenty per cent of the contribution received for administrative expenses in contravention of section 8 of the Act.

Rs. 1,00,000 or 5% of such foreign contribution so defrayed beyond the permissible limit, whichever is higher.

Rs. 1,00,000 or 5% of such foreign contribution so defrayed beyond the permissible limit, whichever is higher.

Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.

11

Offences punishable under section 37 read with section 17 of the Act for-


(a) Receiving foreign contribution in any account other than specified account in his application for grant of certificate;

 

b. Non-reporting the prescribed amount of foreign remittance or source and manner of such remittance by banks and authorised persons.

 

c. Receiving and depositing any fund other than foreign contribution in the account or accounts opened for receiving foreign contribution or for utilising the foreign contribution.​

RS. 1,00,000 or 5%. of the foreign contribution received in such account, whichever is higher;

 

 






Rs. 1,00,000 or 5%. of the foreign contribution received in such account, whichever is higher;

 

Rs. 1,00,000 or 3%. of the foreign contribution received or deposited in such account, whichever is higher.


 

 


Rs. 1,00,000 or 2%. of such deposit, whichever is higher.

Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.

 

Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.

 

Director, or as the case may be, the Deputy Secretaryin-charge of the section responsible for the administration of the Act.

12

Offence punishable under section 37 for not maintaining the account and records of foreign contribution received and manner of its utilisation as required section 19 of the Act.​

Rs. 1,00,000 or 5%. of the foreign contribution during the relevant period of non- maintenance of accounts, whichever is higher.

Rs. 1,00,000 or 5% of the foreign contribution during the relevant period of non- maintenance of accounts, whichever is higher.

Director, or as the case may be, the Deputy Secretaryin-charge of the section responsible for the administration of the Act.

The form and mode for filing compounding application shall be prescribed.


D. See the copies of notifications below:


1. Notification SO 3025 (E)


SO-3025(E)
.pdf
Download PDF • 1.29MB

2. Notification GSR 506(E)




Hope this is useful!