{"id":236145,"date":"2020-09-23T10:55:11","date_gmt":"2020-09-23T05:25:11","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=236145"},"modified":"2020-09-23T15:34:10","modified_gmt":"2020-09-23T10:04:10","slug":"parliament-passes-the-foreign-contribution-regulation-amendment-bill-2020-use-of-foreign-contributions-reduced-to-20-key-highlights","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/23\/parliament-passes-the-foreign-contribution-regulation-amendment-bill-2020-use-of-foreign-contributions-reduced-to-20-key-highlights\/","title":{"rendered":"Parliament passes the Foreign Contribution (Regulation) Amendment Bill, 2020; Use of foreign contributions reduced to 20% [Key Highlights]"},"content":{"rendered":"<h3 style=\"text-align: center;\"><span style=\"color: #333399;\">The Foreign Contribution (Regulation) Amendment Bill, 2020<\/span><\/h3>\n<p><span style=\"color: #800000;\"><strong>Lok Sabha passed the Foreign Contribution (Regulation) Amendment Bill, 2020 on 21-09-2020 and today i.e. 23-09-2020, Rajya Sabha passed the Bill.<\/strong><\/span><\/p>\n<h3><span style=\"color: #008000;\"><strong>Why has the bill been proposed?<\/strong><\/span><\/h3>\n<div class=\"page\" title=\"Page 4\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the said Act. Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts.<\/p>\n<p style=\"text-align: justify;\">This has led to a situation where the Central Government had to cancel certificates of registration of more than 19,000 recipient organisations, including non-Governmental organisations, during the period between 2011 and 2019.<\/p>\n<div class=\"page\" title=\"Page 4\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">Therefore, there is a need to streamline the provisions of the said Act by strengthening the compliance mechanism, enhancing transparency and accountability in the receipt and utilisation of foreign contribution worth thousands of crores of rupees every year and facilitating genuine non-Governmental organisations or associations who are working for the welfare of the society.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3 style=\"text-align: justify;\"><span style=\"color: #008000;\">Highlights of the Bill are as follows:<\/span><\/h3>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Prohibition to accept foreign contribution [Section 3]<\/span><\/p>\n<p style=\"text-align: justify;\">No foreign contribution shall be accepted by any public servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government.<\/p>\n<div class=\"page\" title=\"Page 5\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Prohibition to transfer foreign contribution to other person [Section 7]<\/span><\/p>\n<p style=\"text-align: justify;\">Now the bill proposes the prohibition to the transfer of foreign contribution to another person and the requirement of valid certificate has also been removed. i.e earlier a person could transfer to the person with a valid certificate, but that has been removed now.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Restriction to utilise foreign contribution for the administrative purpose [Section 8]<\/span><\/p>\n<p style=\"text-align: justify;\">The foreign contributions received shall be used only up to 20% which earlier was 50%.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Registration of certain persons with Central Government <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">[Section 11]<\/span><\/p>\n<p style=\"text-align: justify;\">Only after the prior permission of the Central Government a person who is not registered shall accept the foreign contribution:<\/p>\n<p style=\"text-align: justify;\">Provided <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">that the Central Government, on the basis of any information or report, and after holding a summary inquiry, has reason to believe that a person who has been granted prior permission has contravened any of the provisions of this Act, it may, pending any further inquiry, direct that such person shall not utilise the unutilised foreign contribution or receive the remaining portion of foreign contribution which has not been received or, as the case may be, any additional foreign contribution, without prior approval of the Central Government:<\/span><\/p>\n<div class=\"page\" title=\"Page 2\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">Provided further that if the person referred to in sub-section (1) or in this sub-section has been found guilty.&#8221;.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Grant of Certificate of Registration [Section 12]<\/span><\/p>\n<p style=\"text-align: justify;\">Every person who makes an application for grant of a certificate shall be required to open an FCRA Account in the manner mention in Section 17 Aand mention the details of such an account in his application.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Mandatory Aadhaar [Section 12 A] [New Section]<\/span><\/p>\n<p style=\"text-align: justify;\">As an identification document for the purpose of this Act, Aadhaar number for all Office bearer or directors of all NGOs and other organization which is eligible for foreign contribution is mandatory. However, a passport or overseas citizen of India card is required in the case of foreign nationals.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Suspension of Certificate [Section 13]<\/span><\/p>\n<p style=\"text-align: justify;\">Time limit for suspension of Certificate issued under FCRA has been stated to be as either 180 days or such further period not exceeding 180 days, as may be specified.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Surrender of Certificate [Section 14 A] [New Section]<\/span><\/p>\n<p style=\"text-align: justify;\">If the Central Government is satisfied after inquiry as it deems fit, it can permit a person to surrender the certificate.<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #800000;\">Foreign Contribution through Scheduled Bank [Section 17]<\/span><\/p>\n<p style=\"text-align: justify;\">Now, under this provision, every person who has been granted a certificate or prior permission under Section 12 shall receive foreign contribution only in an account designated as &#8220;FCRA Account&#8221; which shall be opened by him in such branch of the State Bank of India at New Delhi.<\/p>\n<p style=\"text-align: justify;\">Along with the above stated key highlights, amendments under Section 15 and 16 have also been made which can be referred to in the bill below.<\/p>\n<p style=\"text-align: center;\"><strong><span style=\"color: #0000ff;\">Please read the bill here:<\/span><\/strong> <a href=\"http:\/\/164.100.47.4\/BillsTexts\/LSBillTexts\/Asintroduced\/123_2020_LS_Eng.pdf\">BILL<\/a><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Parliament<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Foreign Contribution (Regulation) Amendment Bill, 2020 Lok Sabha passed the Foreign Contribution (Regulation) Amendment Bill, 2020 on 21-09-2020 and today i.e. <\/p>\n","protected":false},"author":8808,"featured_media":154904,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,13],"tags":[43550,31223,17531,31021,30094],"class_list":["post-236145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-statutes","tag-foreign-contributions","tag-lok-sabha","tag-ngos","tag-parliament","tag-rajya-sabha"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Parliament passes the Foreign Contribution (Regulation) Amendment Bill, 2020; 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The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/09\/pail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/09\/pail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/09\/pail.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/09\/pail.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/09\/pail.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":246795,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/13\/budget-session-18-bills-passed-by-parliament\/","url_meta":{"origin":236145,"position":1},"title":"Budget Session | 18 Bills passed by Parliament","author":"Bhumika Indulia","date":"April 13, 2021","format":false,"excerpt":"The Budget Session, 2021 of Parliament, which commenced on January 29, 2021, has been adjourned on March 25, 2021. 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The said Bill was passed by Rajya Sabha on March 18, 2021. The Bill removes restrictions on ownership and control. 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Speaking after the passing of the Bill, Union HRD Minister Shri Ramesh Pokhriyal \u2018Nishank\u2019 thanked the Members of the House for their support in passing the\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Parliament_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":7268,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/08\/11\/lok-sabha-passed-the-delhi-high-court-amendment-bill-2014\/","url_meta":{"origin":236145,"position":4},"title":"Lok Sabha passed the Delhi High Court (Amendment) Bill, 2014","author":"Sucheta","date":"August 11, 2015","format":false,"excerpt":"The Lok Sabha on August 5, 2015 passed the Delhi High Court (Amendment) Bill, 2014 which was passed by the Rajya Sabha on May 6, 2015. The Bill seeks to raise the lower pecuniary limit of the Delhi High Court\u2019s original civil jurisdiction, from rupees twenty lakhs to rupees two\u2026","rel":"","context":"In &quot;Foreign Legislation&quot;","block_context":{"text":"Foreign Legislation","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/foreign\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/08\/parliamentSM.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":235819,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/15\/lok-sabha-banking-regulation-amendment-bill-2020-read-how-the-bill-will-strengthen-the-co-operative-banks\/","url_meta":{"origin":236145,"position":5},"title":"Lok Sabha | Banking Regulation (Amendment) Bill, 2020: Read how the bill will strengthen the co-operative banks [Bill Passed]","author":"Bhumika Indulia","date":"September 15, 2020","format":false,"excerpt":"The Banking Regulation (Amendment) Bill, 2020 Which Act will the said bill amend? 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