Prohibitory Orders under FCRA

Prohibitory Orders for Contravention of the Act

• Central Government can issue prohibitory orders for contravention of the Act regarding articles, currency, or securities.
• The order must be served on the person concerned:
  • By delivering or tendering it to the person or their authorized agent.
  • By sending it via registered post with acknowledgment due or speed post to their last known residence, business address, or place of work. For organizations, the last known office address is used.
  • By affixing it to the premises (outer door or conspicuous part) if personal service is impossible. The affixation must be witnessed by at least two people.
• Rule 8 of the FCR, Rule 2011 and section 7 of the Unlawful Activities (Prevention) Act, 1967 are relevant to the action taken.
• References to moneys, securities, or credits within the Act now refer to articles, currency or securities.

Foreign Contribution (Regulation) Act (FCRA) Registration

Registration and Prior Permission Conditions

• Applications for registration or prior permission under the FCRA must be made to the Central Government, following prespecified formats and paying applicable fees (Rule 9 of the Foreign Contribution (Regulation) Rules, 2011).
• Conditions for registration and prior permission (section 12(4) of FCRA, 2010):
  • The applicant must not be fictitious or benami.
  • No prosecution or conviction for religious conversion through inducement or force or creating communal tension/disharmony.
  • No conviction or finding of guilty for misusing funds.
  • Not engaged/likely to engage in sedition or advocating violent methods.
  • Not likely to use foreign contribution for personal gain or undesirable purposes.
  • No contravention of any FCRA provision.
  • No prohibition from accepting foreign contributions.
  • (For registration) Demonstrated reasonable activities for the intended societal benefit from the foreign contribution.
  • (For prior permission) A detailed, justifiable project demonstrating the intended societal benefit from the foreign contribution.
  • (If an individual) No pending prosecutions or convictions under any law.

Exemptions

• Bodies established under Central or State Acts requiring compulsory CAG audits are exempt from all FCRA provisions.

Registration Process

• Chapter III of the FCRA deals with registration of individuals for accepting foreign contributions, including certification, suspension, cancellation, and renewal processes, covering sections 11 to 16 of the Act.
• Two modes for accepting foreign contributions under FCRA 2010 are covered.

This quiz covers the prohibitory orders issued by the Central Government for contravention of the Foreign Contribution Regulation Act. It outlines the methods of service for these orders and relevant provisions related to articles, currency, and securities. Understanding these legal frameworks is crucial for compliance with the Act.