FOREIGNCONTRIBUTION(REGULATION)ACT,2010TOCOMEINTOFORCEW.E.F.

152011
Section 1 of the Foreign Contribution (Regulation) Act, 2010 Commencement of Act Date notified for
enforcementofprovisionsofsaidAct
NOTIFICATIONNO.S.O.909(E),DATED2942011
Inexerciseofthe powersconferred by subsection(3)ofsection1 of theForeignContribution(Regulation)Act,
2010 (42 of 2010), the Central Government hereby appoints the 1st day of May, 2011 as the date on which the
provisionsofthesaidActshallcomeintoforce.
FOREIGNCONTRIBUTION(REGULATION)ACT,2010
(No.42of2010*)
AnActtoconsolidate the lawto regulate theacceptanceandutilisation of foreign contributionorforeignhospitality
bycertainindividualsorassociationsorcompaniesandtoprohibitacceptanceandutilisationofforeigncontribution
or foreign hospitality for anyactivities detrimentaltothenationalinterest and formattersconnected therewith or
incidental thereto.
BEitenactedbyParliamentintheSixtyfirstYearoftheRepublicofIndiaasfollows:

CHAPTERI
PRELIMINARY
Shorttitle,extent,applicationandcommencement.
1.(1)ThisActmaybecalledtheForeignContribution(Regulation)Act,2010.
(2)ItextendstothewholeofIndia,anditshallalsoapplyto
(a)citizensofIndiaoutsideIndia;and
(b) associate branches or subsidiaries, outside India, of companies or bodies corporate, registered or
incorporatedinIndia.
(3)ItshallcomeintoforceonsuchdateastheCentralGovernmentmay,bynotificationintheOfficialGazette,appoint:
ProvidedthatdifferentdatesmaybeappointedfordifferentprovisionsofthisActandanyreference inanysuch
provision to the commencement of this Act shall be construed as a reference to the coming into force of that
provision.
Definitions.
2.(1)InthisAct,unlessthecontextotherwiserequires,
(a)associationmeansanassociationofindividuals,whetherincorporatedornot,havinganofficeinIndia
andincludesasociety,whetherregisteredundertheSocietiesRegistrationAct,1860(21of1860),ornot,andany
otherorganisation,bywhatevernamecalled;
(b)authorisedpersoninforeignexchangemeansanauthorisedpersonreferredtoinclause(c)ofsection2of
theForeignExchangeManagementAct,1999(42of1999);
(c) bank means a banking company as referred to in clause (c)of section 5 of theBankingRegulationAct,
1949(10of1949);

(d)candidateforelectionmeansapersonwhohasbeendulynominatedasacandidate for election to any

Legislature;
(e)certificatemeanscertificateofregistrationgrantedundersubsection(3)ofsection12;
(f)companyshallhavethemeaningassignedtoitunderclause(17)ofsection2oftheIncometaxAct,1961
(43of1961);
(g)foreigncompanymeansanycompanyorassociationorbodyofindividualsincorporatedoutsideIndiaand
includes
(i)aforeigncompanywithinthemeaningofsection591oftheCompaniesAct,1956(1of1956);
(ii)acompanywhichisasubsidiaryofaforeigncompany;
(iii)theregisteredofficeorprincipalplaceofbusinessofaforeigncompanyreferred to in sub clause (i) or
companyreferredtoinsubclause(ii);
(iv) a multinational corporation.
Explanation. For the purposes of this subclause, a corporation incorporated in a foreign country or
territoryshallbedeemedtobeamultinationalcorporationifsuchcorporation,
(a)hasasubsidiaryorabranchoraplaceofbusinessintwoormorecountriesorterritories;or
(b)carriesonbusiness,orotherwiseoperates,intwoormorecountriesorterritories;
(h)foreigncontributionmeansthedonation,deliveryortransfermadebyanyforeignsource,
(i)ofanyarticle,notbeinganarticlegiventoapersonasagiftforhispersonaluse,ifthemarketvalue,in
India,ofsucharticle,onthedateofsuchgift,isnotmorethansuchsumasmaybespecifiedfromtimeto
time,bytheCentralGovernmentbytherulesmadebyitinthisbehalf;
(ii)ofanycurrency,whetherIndianorforeign;
(iii)ofanysecurityasdefinedinclause(h)ofsection2oftheSecuritiesContracts(Regulation)Act,1956
(42of1956)andincludesanyforeignsecurityasdefinedinclause(o)ofsection2of`theForeignExchange
ManagementAct,1999(42of1999).
Explanation 1.Adonation, delivery or transfer of any article, currency orforeignsecurityreferredtoin
this clause by any person who has received it from any foreign source, either directly or through one or more
persons,shallalsobedeemedtobeforeigncontributionwithinthemeaningofthisclause.
Explanation2.Theinterestaccruedontheforeigncontributiondepositedinanybankreferredtoinsub
section(1)ofsection17oranyotherincomederivedfromtheforeigncontributionorinterestthereonshallalso
bedeemedtobeforeigncontributionwithinthemeaningofthisclause.
Explanation 3. Any amount received, by any person from any foreign source in India, by way of fee (
includingfeeschargedbyaneducationalinstitutioninIndiafromforeignstudent)ortowardscostinlieuofgoods
or services rendered by such person in the ordinary course of his business, trade or commerce whether within
IndiaoroutsideIndiaoranycontributionreceivedfromanagentofaforeignsourcetowardssuchfeeorcostshall
beexcludedfromthedefinitionofforeigncontributionwithinthemeaningofthisclause;
(i)foreign hospitalitymeansanyoffer,notbeingapurelycasualone, madein cash or kind by a foreign
sourceforprovidingapersonwiththecostsoftraveltoanyforeigncountryorterritoryorwithfreeboarding,lodging,
transportormedicaltreatment;

(j)foreignsourceincludes,
(i)theGovernmentofanyforeigncountryorterritoryandanyagencyofsuchGovernment;
(ii) any international agency, not being the United Nations or any of its specialised agencies, the
World Bank, International Monetary Fund or such other agency as the Central Government may, by
notification,specifyinthisbehalf;
(iii)aforeigncompany;
(iv)acorporation,notbeingaforeigncompany,incorporatedinaforeigncountryorterritory;
(v)amultinationalcorporationreferredtoinsubclause(iv)ofclause(g);
(vi)acompanywithinthemeaningoftheCompaniesAct,1956(1of1956),andmorethanonehalfof
thenominalvalueofitssharecapitalisheld,eithersinglyorintheaggregate,byoneormoreofthe
following,namely:
(A)theGovernmentofaforeigncountryorterritory;
(B)thecitizensofaforeigncountryorterritory;
(C) corporations incorporated in a foreign country or territory;
(D) trusts,societiesorother associationsof individuals(whetherincorporatedornot),formed
orregisteredinaforeigncountryorterritory;
(E)foreigncompany;
(vii)atradeunioninanyforeigncountryorterritory,whetherornotregisteredinsuchforeigncountry
orterritory;
(viii) a foreign trust or a foreign foundation, by whatever name called, or such trust or foundation
mainlyfinancedbyaforeigncountryorterritory;
(ix)asociety,cluborotherassociationofindividualsformedorregisteredoutside India;
(x)acitizenofaforeigncountry;
(k)Legislaturemeans
(A)eitherHouseofParliament;
(B)theLegislativeAssemblyofaState,orinthecaseofaStatehavingaLegislativeCouncil,either
HouseoftheLegislatureofthatState;
(C) LegislativeAssembly of a Union territory constituted under theGovernmentofUnion
TerritoriesAct,1963(20of1996);
(D)LegislativeAssemblyfortheNationalCapitalTerritoryofDelhireferredtointheGovernmentof
NationalCapitalTerritoryofDelhiAct,1991(1of1992);
(E)Municipalityasdefinedinclause(e)ofarticle243PoftheConstitution;
(F) District Councils and Regional Councils in the States ofAssam,Meghalaya, Tripura and
Mizoram as provided in the Sixth Schedule to theConstitution;
(G)Panchayatasdefinedinclause(d)ofarticle243oftheConstitution;or
(H)anyotherelectivebodyasmaybenotifiedbytheCentralGovernment;

(l)notificationmeansnotificationpublishedintheOfficialGazetteandtheexpressionnotifyshallbe
construedaccordingly;
(m)personincludes
`(i)anindividual;

(ii)aHinduundividedfamily;
(iii)an association;
(iv)acompanyregisteredundersection25oftheCompaniesAct,1956(1of1956);
(n)politicalpartymeans
(i)anassociationorbodyofindividualcitizensofIndia
(A)toberegisteredwiththeElectionCommissionofIndiaasapoliticalpartyundersection
29AoftheRepresentationofthePeopleAct,1951(43of1951);or
(B) which has set up candidates for election to any Legislature, but isnotsoregisteredor
deemedtoberegisteredundertheElectionSymbols(ReservationandAllotment)Order,1968;
(ii)apoliticalpartymentionedincolumn2ofTable1andTable2tothenotificationofthe
Election Commission of India No.56/J&K/02, dated the 8th August, 2002, as in force for the time
being;
(o)prescribedmeansprescribedbyrulesmadeunderthisAct;
(p)prescribedauthoritymeansanauthorityspecifiedassuchbyrulesmadebytheCentralGovernment
underthisAct;
(q)registerednewspapermeansanewspaperregisteredunderthePressandRegistrationofBooksAct,
1867(25of1867);
(r)relativehasthemeaningassignedtoitinclause(41)ofsection2oftheCompaniesAct,1956(1of
1956);
(s)scheduledbankshallhavethemeaningassignedtoitunderclause(e)ofsection2oftheReserveBank
ofIndiaAct,1934(2of1934);
(t)subsidiaryandassociateshallhavethemeanings,respectivelyassignedtothemintheCompaniesAct,
1956(1of1956);
(u) trade union means a trade union registered under the Trade UnionsAct,1926(16of1926);
(2)WordsandexpressionsusedhereinandnotdefinedinthisActbutdefinedintheRepresentationofthePeople
Act, 1950 (43 of 1950) or the Representation of the People Act, 1951 (43 of 1951) or the Foreign Exchange
ManagementAct,1999(42of1999)shallhavethemeaningsrespectivelyassignedtotheminthoseActs.
CHAPTERII
REGULATION OFFOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY
Prohibitiontoacceptforeigncontribution.
3.(1)Noforeigncontributionshallbeacceptedbyany
(a)candidateforelection;
(b)correspondent,columnist,cartoonist,editor,owner,printerorpublisherofaregistered newspaper;
(c)Judge,Governmentservantoremployeeofanycorporationoranyotherbodycontrolled or owned
bytheGovernment;
(d)memberofanyLegislature;
(e) political party or officebearer thereof;
(f)organisationofapoliticalnatureasmaybespecifiedundersubsection(1)ofsection5bythe
CentralGovernment;

(g)associationorcompanyengagedintheproductionorbroadcastofaudionewsoraudiovisualnews
or current affairs programmes through any electronic mode, or any other electronic form as defined in
clause (r) of subsection (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) or any
othermodeofmasscommunication;
(h) correspondent or columnist, cartoonist, editor, owner of the associationor company referred to
inclause(g).
Explanation. In clause (c) and section 6, the expression corporation means a corporation owned or
controlledbytheGovernmentandincludesaGovernmentcompanyasdefinedinsection617oftheCompaniesAct,
1956(1of1956).
(2) (a) No person, resident in India, and no citizen of India resident outside India, shall accept any foreign
contribution,oracquireoragreetoacquireanycurrencyfromaforeignsource,onbehalfofanypoliticalparty,or
anypersonreferredtoinsubsection(1),orboth.
(b)Noperson,residentinIndia,shalldeliveranycurrency,whetherIndianorforeign,whichhasbeenacceptedfrom
anyforeignsource,toanypersonifheknowsorhasreasonablecausetobelievethatsuchotherpersonintends,oris
likely,todeliversuchcurrencytoanypoliticalpartyoranypersonreferredtoinsubsection(1),orboth.
(c)NocitizenofIndiaresidentoutsideIndiashalldeliveranycurrency,whetherIndian or foreign, which has been
acceptedfromanyforeignsource,to
(i) any political party or any person referred to in subsection (1), orboth; or
(ii)anyotherperson,ifheknowsorhasreasonable causetobelievethatsuchotherpersonintends,oris
likely,todeliversuchcurrencytoapoliticalpartyortoanypersonreferredtoinsubsection(1),orboth.
(3)Nopersonreceivinganycurrency,whetherIndianorforeign,fromaforeignsource on behalf of any person or
classofpersons,referredtoinsection9,shalldeliversuchcurrency
(a)toanypersonotherthanapersonforwhichitwasreceived,or
(b)toanyotherperson,ifheknowsorhasreasonablecausetobelievethatsuchotherpersonintends,oris
likely,todeliversuchcurrencytoapersonotherthanthepersonforwhichsuchcurrencywasreceived.
Personstowhomsection3shallnotapply.
4.Nothingcontainedinsection3shallapplytotheacceptance,byanypersonspecifiedinthatsection,ofanyforeign
contributionwheresuchcontributionisacceptedbyhim,subjecttotheprovisionsofsection10,
(a)bywayofsalary,wagesorotherremunerationduetohimortoanygroupofpersonsworkingunderhim,
from any foreign source or by way of payment in the ordinary course of business transacted in India by such
foreignsource;or
(b)bywayofpayment,inthecourseofinternationaltradeorcommerce,orintheordinarycourseofbusiness
transactedbyhimoutsideIndia;or
(c) as an agent of a foreign source in relation to any transaction made by such foreign source with the
CentralGovernmentorStateGovernment;or
(d)bywayofagiftorpresentationmadetohimasamemberofanyIndiandelegation,providedthatsuch
gift or present was accepted in accordance with the rules made by the Central Government with regard to the
acceptanceorretentionofsuchgiftorpresentation;or

(e)fromhisrelative;or
(f)bywayofremittancereceived,intheordinarycourseofbusinessthroughanyofficialchannel,postoffice,
oranyauthorisedpersoninforeignexchangeundertheForeignExchangeManagementAct,1999(42of1999);or
(g)bywayofanyscholarship,stipendoranypaymentoflikenature:
Providedthatincaseanyforeigncontributionreceivedbyanypersonspecifiedundersection3,foranyof
the purposes other than those specified under this section, such contribution shall be deemed to have been
acceptedincontraventionoftheprovisionsofsection3.
Proceduretonotifyanorganizationofapoliticalnature.
5.(1)TheCentralGovernmentmay,havingregardtotheactivitiesoftheorganisationortheideologypropagatedby
theorganisation ortheprogrammeoftheorganisationortheassociationoftheorganisationswiththeactivitiesof
anypoliticalparty,byanorderpublished in the Official Gazette, specify such organisation as an organisation of a
politicalnaturenotbeingapoliticalparty,referredtoinclause(f)ofsubsection(1)ofsection3:
Provided that the Central Government may, by rules made by it, frame the guidelines specifying the ground or
groundsonwhichanorganisationshallbespecifiedasanorganisationofapoliticalnature.
(2)Beforemakinganorderundersubsection(1),theCentralGovernmentshallgivetheorganisationinrespectof
whom the order is proposed to be made, a notice in writing informingitofthegroundorgrounds,onwhichitis
proposedtobespecifiedasanorganisationofpoliticalnatureunderthatsubsection:
(3)The organisation to whom a notice has been served under subsection (2), may,withinaperiodofthirtydays
fromthedateofthenotice,makearepresentationtotheCentralGovernmentgivingreasonsfornotspecifyingsuch
organisationasanorganisationundersubsection (1):
ProvidedthattheCentralGovernmentmayentertaintherepresentationaftertheexpiryofthesaidperiodofthirty
days,ifitissatisfiedthattheorganisationwaspreventedbysufficientcausefrommakingtherepresentationwithin
thirtydays.
(4)TheCentralGovernmentmay,ifitconsidersitappropriate,forwardtherepresentationreferred to in sub
section(3)toanyauthoritytoreportonsuchrepresentation.
(5)TheCentralGovernmentmay,afterconsideringtherepresentationandthereportoftheauthorityreferred
to in subsection (4), specify such organisation as an organisation of apoliticalnaturenotbeingapolitical
partyandmakeanorderundersubsection(1)accordingly.
(6)Everyorderundersubsection(1)shallbemadewithinaperiodofonehundredandtwentydaysfromthe
dateofissueofnoticeundersubsection(2):
Providedthatincasenoorderismadewithinthesaidperiodofonehundredandtwentydays,theCentral
Governmentshall,afterrecordingthereasonstherefor,makeanorderundersubsection(1)withinaperiod
ofsixtydaysfromtheexpiryofthesaidperiodofonehundredandtwentydays.
Restrictiononacceptanceofforeignhospitality.
6.NomemberofaLegislatureorofficebearerofapoliticalpartyorJudgeorGovernmentservantoremployeeofany
corporationoranyotherbodyownedorcontrolledbytheGovernmentshall,whilevisitinganycountryorterritory
outsideIndia,accept,exceptwiththepriorpermissionoftheCentralGovernment,anyforeignhospitality:
Provided that it shall not be necessary to obtain any such permission for an emergent medical aid needed on
account of sudden illness contracted during a visit outside India, but, where such foreign hospitality has been
received, the person receiving such hospitality shall give, within one month from the date of receipt of such

hospitalityanintimationtotheCentralGovernmentastothereceiptofsuchhospitality,andthesourcefromwhich,
andthemannerinwhich,suchhospitalitywasreceivedbyhim.
Prohibitiontotransferforeigncontributiontootherperson.
7.Nopersonwho
(a)isregisteredandgrantedacertificateorhasobtainedpriorpermissionunderthisAct;and
(b)receivesanyforeigncontribution,
shall transfer such foreign contribution to any other person unless such other person is also registered and had
beengrantedthecertificateorobtainedthepriorpermissionunderthisAct:
Provided that such person may transfer, with the prior approval of the Central Government, a part of
suchforeigncontributiontoanyotherpersonwhohasnotbeengrantedacertificateorobtainedpermissionunder
thisActinaccordancewiththerulesmadebytheCentralGovernment.
Restrictiontoutilizeforeigncontributionforadministrativepurpose.
8.(1)Everyperson,whoisregisteredandgrantedacertificateorgivenpriorpermissionunderthisAct and receives
anyforeigncontribution,
(a)shallutilisesuchcontributionforthepurposesforwhichthecontributionhasbeenreceived:
Providedthatanyforeigncontributionoranyincomearisingoutofitshallnotbe used for speculative
business:
ProvidedfurtherthattheCentralGovernmentshall,byrules,specifytheactivitiesorbusinesswhichshall
beconstruedasspeculativebusinessforthepurposeofthissection;
(b) shall not defray as far as possible such sum, not exceeding fifty per cent of such contribution,
receivedinafinancialyear,tomeetadministrativeexpenses:
Provided that administrative expenses exceeding fifty per cent of such contribution may be
defrayedwithpriorapprovaloftheCentralGovernment.
(2) The Central Government may prescribe the elements which shall be included in the administrative
expenses and the manner in which the administrative expenses referred to in subsection (1) shall be
calculated.
PowerofCentralGovernmenttoprohibitreceiptofforeigncontribution,etc.,incertaincases.
9.TheCentralGovernmentmay
(a)prohibitanypersonororganisationnotspecifiedinsection3,fromacceptinganyforeigncontribution;
(b) require any person or class of persons, not specified in section 6, to obtain prior permission of the
CentralGovernmentbeforeacceptinganyforeignhospitality;
(c)requireanypersonorclassofpersonsnotspecifiedinsection11,tofurnishintimationwithinsuchtime
andinsuchmannerasmaybeprescribedastotheamountofanyforeigncontributionreceivedbysuchpersonor
class of persons as the case may be, and the source from which and the manner in which such contribution was
receivedandthepurposeforwhichandthemannerinwhichsuchforeigncontributionwasutilised;
(d) without prejudice to the provisions of subsection (1) of section 11, require any person or class of
personsspecifiedinthatsubsectiontoobtainpriorpermissionof the Central Government before accepting any
foreign contribution;

(e)requireanypersonorclassofpersons,notspecifiedinsection6,tofurnishintimation,withinsuchtime
andinsuchmannerasmaybeprescribed,astothereceiptofanyforeignhospitality,thesourcefromwhichandthe
mannerinwhichsuchhospitalitywasreceived:
ProvidedthatnosuchprohibitionorrequirementshallbemadeunlesstheCentralGovernmentissatisfied
thattheacceptanceofforeigncontributionbysuchpersonorclassofpersons,asthecasemaybe,ortheacceptance
offoreignhospitalitybysuchperson,islikelytoaffectprejudicially
(i)thesovereigntyandintegrityofIndia;or
(ii) public interest; or
(iii)freedomorfairness of election to any Legislature; or
(iv)friendlyrelationswithanyforeignState;or
(v) harmony between religious, racial, social, linguistic or regionalgroups, castes or
communities.
PowertoprohibitpaymentofcurrencyreceivedincontraventionoftheAct.
10.WheretheCentralGovernmentissatisfied,aftermakingsuchinquiryasitmaydeemfit,thatanypersonhasin
his custodyor control any articleorcurrencyorsecurity,whetherIndianorforeign,whichhasbeen acceptedby
suchpersonincontraventionofanyoftheprovisionsofthisAct,itmay,byorderinwriting,prohibitsuchperson
frompaying,delivering,transferringorotherwisedealingwith,inanymannerwhatsoever,sucharticleorcurrency
orsecuritysaveinaccordancewiththewrittenordersoftheCentralGovernmentandacopyofsuchordershallbe
serveduponthepersonsoprohibitedintheprescribedmanner,andthereupontheprovisionsofsubsections(2),
(3),(4)and(5)ofsection7ofthe UnlawfulActivities(Prevention)Act,1967 (37 of 1967)shall,sofarasmaybe,
applyto,orinrelationto,sucharticleorcurrencyorsecurityandreferencesinthesaidsubsectionstomoneys,
securitiesorcreditsshallbeconstruedasreferencestosucharticleorcurrencyorsecurity.
CHAPTERIII
REGISTRATION
RegistrationofcertainpersonswithCentralGovernment.
11.(1)SaveasotherwiseprovidedinthisAct,nopersonhavingadefinitecultural,economic,educational,religious
orsocialprogrammeshallacceptforeigncontributionunlesssuchpersonobtainsacertificateofregistrationfromthe
CentralGovernment:
ProvidedthatanyassociationregisteredwiththeCentralGovernmentundersection6orgrantedpriorpermission
underthatsectionoftheForeignContribution(Regulation)Act,1976(49of1976),asitstoodimmediatelybefore
thecommencementofthisAct,shallbedeemedto have been registered or granted prior permission, as the case
may be, under this Act and suchregistrationshallbevalidforaperiodoffiveyearsfromthedate onwhichthis
sectioncomesintoforce.
(2)Everypersonreferredtoin subsection(1)may,if itisnotregistered withtheCentral Government
under that subsection, accept any foreign contribution only afterobtainingthepriorpermissionofthe
CentralGovernmentandsuchpriorpermissionshallbevalidforthespecificpurposeforwhichitisobtained
andfromthespecificsource:
Providedthatifthepersonreferredtoinsubsections(1)and(2)hasbeenfoundguiltyofviolationofanyof
theprovisionsofthisActortheForeignContribution(Regulation)Act,1976(49of1976),theunutilisedorunreceived
amountofforeigncontributionshallnotbeutilisedorreceived,asthecasemaybe,withoutthepriorapprovalofthe
CentralGovernment.

(3)NotwithstandinganythingcontainedinthisAct,theCentralGovernmentmay,bynotificationintheOfficial
Gazette,specify
(i)thepersonorclassofpersonswhoshallobtainitspriorpermissionbeforeacceptingtheforeign
contribution;or
(ii)theareaorareasinwhichtheforeigncontributionshallbeacceptedandutilisedwiththeprior
permissionoftheCentralGovernment;or
(iii)thepurposeorpurposesforwhichtheforeigncontributionshallbeutilisedwiththepriorpermissionof
theCentralGovernment;or
(iv)thesourceorsourcesfromwhichtheforeigncontributionshallbeacceptedwiththepriorpermissionof
theCentralGovernment.
Grantofcertificateofregistration.
12.(1)Anapplicationbyaperson,referredtoinsection11forgrantofcertificateorgivingpriorpermission,shall
bemadetotheCentralGovernmentinsuchformandmannerandalongwithsuchfee,asmaybeprescribed.
(2) On receipt of an application under subsection (1), the Central Government shall, by an order, if the
applicationisnotintheprescribedformordoesnotcontainanyoftheparticularsspecifiedinthatform,rejectthe
application.
(3)Ifonreceiptofanapplicationforgrantofcertificateorgivingpriorpermissionand after making such
inquiryastheCentralGovernmentdeemsfit,itisoftheopinionthattheconditionsspecifiedinsubsection(4)are
satisfied,itmay,ordinarilywithinninetydaysfromthedateofreceiptofapplicationundersubsection(1),register
suchpersonandgranthimacertificateorgivehimpriorpermission,asthecasemaybe,subjecttosuchtermsand
conditionsasmaybeprescribed:
Provided that in case the Central Government does not grant, within the said period of ninety days, a
certificateorgivepriorpermission,itshallcommunicatethereasonstherefortotheapplicant:
Providedfurtherthatapersonshallnotbeeligibleforgrantofcertificateorgivingpriorpermission,ifhis
certificatehasbeensuspendedandsuchsuspensionofcertificatecontinuesonthedateofmakingapplication.
(4)Thefollowingshallbetheconditionsforthepurposesofsubsection(3),namely:
(a)thepersonmakinganapplicationforregistrationorgrantofpriorpermissionundersubsection(1),
(i)isnotfictitiousorbenami;
(ii) has not been prosecuted or convicted for indulging in activities aimed at conversion through
inducementorforce,eitherdirectlyorindirectly,fromonereligiousfaithtoanother;
(iii) has not been prosecuted or convicted for creating communal tension or disharmony in any
specifieddistrictoranyotherpartofthecountry;
(iv)hasnotbeenfoundguiltyordiversionormisutilisationofitsfunds;
(v)isnotengagedorlikelytoengageinpropagationofseditionoradvocateviolentmethodstoachieve
itsends;
(vi) is not likely to use the foreign contribution for personal gains or divert it for undesirable
purposes;
(vii)hasnotcontravenedanyoftheprovisionsofthisAct;
(viii)hasnotbeenprohibitedfromacceptingforeigncontribution;

(b) the person making an application for registration under subsection (1) has undertaken reasonable
activityinits chosenfiledforthebenefitofthesocietyforwhich the foreign contribution is proposed to be
utilised;
(c) the person making an application for giving prior permission undersubsection(1)hasprepared
areasonableprojectforthebenefitofthesocietyforwhichtheforeigncontributionisproposedtobeutilised;
(d)incasethepersonbeinganindividual,suchindividualhasneitherbeenconvictedunderanylawforthe
timebeinginforcenoranyprosecutionforanyoffencependingagainsthim;
(e)incasethepersonbeingotherthananindividual,anyofitsdirectorsorofficebearershasneitherbeen
convicted under any law for the time being in force nor any prosecution for any offence is pending against
him;
(f)theacceptanceofforeigncontributionbythepersonreferredtoinsubsection(1)isnotlikelytoaffect
prejudicially
(i)thesovereigntyandintegrityofIndia;or
(ii)thesecurity,strategic,scientificoreconomicinterestoftheState;or
(iii)thepublicinterest;or
(iv)freedomorfairnessofelectiontoanyLegislature;or
(v)friendlyrelationwithanyforeignState;or
(vi)harmonybetweenreligious,racial,social,linguistic,regionalgroups,castesorcommunities;
(g)theacceptanceofforeigncontributionreferredtoinsubsection(1),
(i)shallnotleadtoincitementofanoffence;
(ii)shallnotendangerthelifeorphysicalsafetyofanyperson.
(5)WheretheCentralGovernmentrefusesthegrantofcertificateordoesnotgivepriorpermission,itshall
recordinitsorderthereasonsthereforandfurnishacopythereoftotheapplicant:
ProvidedthattheCentralGovernmentmaynotcommunicatethereasonsforrefusalforgrantofcertificateor
for not giving prior permission to the applicant under this section in cases where is no obligation to give any
informationordocumentsorrecordsorpapersundertheRighttoInformtionAct,2005(22of2005).
(6) The certificate granted under subsection (3) shall be valid for a period of five years and the prior
permissionshallbevalidforthespecificpurposeorspecificamountofforeigncontributionproposedtobereceived,
asthecasemaybe.
Suspensionofcertificate.
13.(1)WheretheCentralGovernment,forreasonstoberecordedinwriting,issatisfiedthatpendingconsiderationof
the question of cancelling the certificate on any of the grounds mentioned in subsection (1) of section 14, it is
necessarysotodo,itmay,byorderinwriting,suspendthecertificateforsuchperiodnotexceedingonehundredand
eightydaysasmaybespecifiedintheorder.
(2)Everypersonwhosecertificatehasbeensuspendedshall
(a)notreceiveanyforeigncontributionduringtheperiodofsuspensionofcertificate:
ProvidedthattheCentralGovernment,onanapplicationmadebysuchperson,ifitconsidersappropriate,
allowreceiptofanyforeigncontributionbysuchpersononsuchtermsandconditionsasitmayspecify;
(b)utilise,intheprescribedmanner,theforeigncontributioninhiscustodywiththepriorapprovalofthe
CentralGovernment.

Cancellationofcertificate.
14.(1)TheCentralGovernmentmay,ifitissatisfiedaftermakingsuchinquiryasitmaydeemfit,byanorder,cancelthe
certificateif
(a)theholderofthecertificatehasmadeastatementin,orinrelationto,theapplicationforthegrant
ofregistrationorrenewalthereof,whichisincorrectorfalse;or
(b)theholderofthecertificatehasviolatedanyofthetermsandconditionsofthecertificateorrenewal
thereof;or
(c)intheopinionoftheCentralGovernment,itisnecessaryinthepublicinteresttocancelthecertificate;
or
(d) the holder of certificate has violated any of the provisions of this Act or rules or order made
thereunder;or
(e)iftheholderofthecertificatehasnotbeenengagedinanyreasonableactivityinitschosenfieldfor
thebenefitofthesocietyfortwoconsecutiveyearsorhasbecomedefunct.
(2)Noorderofcancellationofcertificateunderthissectionshallbemadeunlesstheperson concerned has
beengivenareasonableopportunityofbeingheard.
(3)Anypersonwhosecertificatehas been cancelledunderthissectionshallnot beeligibleforregistration
orgrantofpriorpermissionforaperiodofthreeyearsfromthedateofcancellationofsuchcertificate.
Managementofforeigncontributionofpersonwhosecertificatehasbeencancelled.
15.(1) The foreign contribution and assets created out of the foreign contribution in thecustodyofeveryperson
whosecertificatehasbeencancelledundersection14shallvestinsuchauthorityasmaybeprescribed.
(2)Theauthorityreferredtoinsubsection(1)may,ifitconsidersnecessaryandinpublicinterest,manage
the activities of the person referred to in that subsection for such period and in such manner, as the Central
Governmentmaydirectandsuchauthoritymayutilisetheforeigncontributionordisposeoftheassetscreatedout
ofitincaseadequatefundsarenotavailableforrunningsuchactivity.
(3)Theauthorityreferredtoinsubsection(1)shallreturntheforeigncontributionand the assets vested
upon it under that subsection to the person referred to in the said sub section if such person is subsequently
registeredunderthisAct.
Renewalofcertificate.
16.(1)Everypersonwhohasbeengrantedacertificateundersection12shallhavesuchcertificaterenewedwithin
sixmonthsbeforetheexpiryoftheperiodofthecertificate.
(2)TheapplicationforrenewalofthecertificateshallbemadetotheCentralGovernment in such form and
mannerandaccompaniedbysuchfeeasmaybeprescribed.
(3)TheCentralGovernmentshallrenewthecertificate,ordinarilywithinninetydaysfromthedateofreceipt
of application for renewal of certificate subject to such terms and conditions as it may deem fit and grant a
certificateofrenewalforaperiodoffiveyears:
ProvidedthatincasetheCentralGovernmentdoesnotrenewthecertificatewithinthesaidperiodofninety
days,itshallcommunicatethereasonstherefortotheapplicant:
ProvidedfurtherthattheCentralGovernmentmayrefusetorenewthecertificateincasewhereaperson
hasviolatedanyoftheprovisionsofthisActorrulesmadethereunder.

CHAPTERIV
ACCOUNTS,INTIMATION,AUDITANDDISPOSALOFASSETS, ETC.
Foreigncontributionthroughscheduledbank.
17.(1) Every person who has been granted a certificate or given prior permission under section 12 shall receive
foreigncontributioninasingleaccountonlythroughsuchoneofthe branches of a bank as he may specify in his
applicationforgrantofcertificate:
Providedthatsuchpersonmayopenoneormoreaccountsinoneormorebanksforutilisingtheforeign
contributionreceivedbyhim:
Provided further that no funds other than foreign contribution shall be received or deposited in such
accountor accounts.
(2)Everybankorauthorisedpersoninforeignexchangeshallreporttosuchauthorityasmaybespecified
(a)prescribedamountofforeignremittance;
(b) the source and manner in which the foreign remittance was received;and
(c)otherparticulars,
insuchformandmannerasmaybeprescribed.

Intimation
18.(1)EverypersonwhohasbeengrantedacertificateorgivenpriorapprovalunderthisActshallgive,withinsuch
timeandinsuchmannerasmaybeprescribed,anintimationtotheCentralGovernment,andsuchotherauthorityas
maybespecifiedbytheCentralGovernment,astotheamountofeachforeigncontributionreceivedbyit,thesource
fromwhichandthemannerinwhichsuchforeigncontributionwasreceived,andthepurposesforwhich,andthe
mannerinwhichsuchforeigncontributionwasutilisedbyhim.
(2) Every person receiving foreign contribution shall submit a copy of a statement indicatingthereinthe
particulars of foreign contribution received duly certified by officer of the bank or authorised person in foreign
exchangeandfurnishthesametotheCentralGovernmentalongwiththeintimationundersubsection(1).
Maintenanceofaccounts.
19.EverypersonwhohasbeengrantedacertificateorgivenpriorapprovalunderthisAct shallmaintain, insuch
formandmannerasmaybeprescribed,
(a)anaccountofanyforeigncontributionreceivedbyhim;and
(b) a record as to the manner in which such contribution has been utilisedbyhim.
Auditofaccounts.
20.Whereanypersonwhohasbeengrantedacertificateorgivenpriorpermission,failstofurnishanyintimation
underthisActwithinthetimespecifiedthereforortheintimationsofurnishedisnotinaccordancewithlaworif,after
inspection of such intimation, the Central Government has any reasonable cause to believe that any provision of
thisActhasbeen,orisbeing,contravened,theCentralGovernmentmay,bygeneralorspecialorder,authorisesuch
gazetted officer, holding a Group A post under the Central Government or any other officer or authority or
organisation,as itmaythinkfit,toauditany booksofaccountkeptor maintained bysuchpersonandthereupon
everysuchofficershallhavetherighttoenterinoruponanypremisesatanyreasonablehour,beforesunsetand
aftersunrise,forthepurposeofauditingthesaidbooksofaccount:

Provided that any information obtained from such audit shall be kept confidential and shall not be
disclosedexceptforthepurposesofthisAct.
Intimationbycandidateforelection.
21. Every candidate for election, who had received any foreign contribution, at anytimewithinonehundredand
eightydaysimmediatelyprecedingthedateonwhichheisdulynominatedassuchcandidate,shallgive,withinsuch
timeandinsuchmannerasmaybeprescribed,anintimationtotheCentralGovernmentorprescribedauthorityor
bothastothe amount of foreign contribution received by him, the source from which, and the manner in which,
such foreign contribution was received and the purposes for which and the manner in which such foreign
contributionwasutilisedbyhim.
Disposalofassetscreatedoutofforeigncontribution.
22. Where any person who was permitted to accept foreign contribution under this Act, ceases to exist or has
become defunct, all the assets of such person shall be disposedofinaccordancewiththeprovisionscontainedin
anylawforthetimebeinginforceunderwhichthepersonwasregisteredorincorporated,andintheabsenceof
any such law, the Central Government may, having regard to the nature of assets created out of foreign
contribution received under this Act, by notification, specify that all such assets shall be disposed off by such
authority,asitmayspecify,insuchmannerandprocedureasmaybeprescribed.
CHAPTERV
INSPECTION,SEARCH AND SEIZURE
23. If the Central Government has, for any reason, to be recorded in writing, any ground to suspect that any
provisionofthisActhasbeenorisbeing,contravenedby
(a)anypoliticalparty;or
(b)anyperson;or
(c)anyorganisation;or
(d)anyassociation,
it may, by general or special order, authorise such gazetted officer, holding a Group A post under the Central
Government or such other officer or authority or organisation, as it may think fit (hereinafter referred to as the
inspecting officer), to inspect any account or record maintained by such political party, person, organisation or
association,asthecasemaybe,andthereuponeverysuchinspectingofficershallhavetherighttoenterinorupon
anypremisesatanyreasonablehour,beforesunsetandaftersunrise,forthepurposeofinspectingthe said account
orrecord.
Seizureofaccountsorrecords.
24.If,afterinspectionofanaccountorrecordreferredtoinsection23,theinspecting officerhasanyreasonable
causetobelievethatanyprovisionofthisActorofanyotherlawrelatingtoforeignexchangehasbeen,orisbeing,
contravened, he may seize such account orrecordandproducethesamebeforethecourt,authorityortribunalin
whichanyproceedingisbroughtforsuchcontravention:
Providedthattheauthorisedofficershallreturnsuchaccountorrecordtothepersonfromwhomitwas
seizedifnoproceedingisbroughtwithinsixmonthsfromthedateofsuchseizureforthecontraventiondisclosedby
suchaccountorrecord.
SeizureofarticleorcurrencyorsecurityreceivedincontraventionoftheAct.

25.Ifanygazettedofficer,authorisedinthisbehalfbytheCentralGovernmentbygeneralorspecialorder,hasany
reasontobelievethatanypersonhasinhispossessionorcontrolanyarticleexceedingthevaluespecifiedinsub
clause(i)ofclause(h)ofsubsection(1)ofsection2orcurrencyorsecuritywhetherIndianorforeign,inrelation
towhich any provision of thisAct has been or is being, contravened, he may seize sucharticle or currency or
security.
Disposalofseizedarticleorcurrencyorsecurity.
26.(1)TheCentralGovernment,may,havingregardtothevalueofarticleorcurrencyorsecurity,theirvulnerability
to theft or any relevant consideration, by notification, specify such article or currency or security which shall, as
soonasmaybeaftertheirseizure,bedisposedofbysuchofficerandinsuchmanner,astheCentralGovernment
may,fromtimeto time, determine after following the procedure hereinafter specified.
(2)Thearticleorcurrencyorsecurityseizedshallbeforwardedwithoutunnecessarydelay to such officer
asmaybespecified.
(3) Where any article or currency or security has been seized and forwarded to such officer, the officer
referredtoinsubsection(1),shallprepareaninventoryofsucharticleor currency or security containing such
details relating to their description, value or suchotheridentifyingparticularsastheofficerreferredtointhatsub
sectionmayconsiderrelevanttotheidentityofthearticleorthecurrencyorsecurityandmakeanapplicationtoany
Magistrateforthe purposesof certifyingthe correctness of the inventory soprepared.
(4)Whereanapplicationismadeundersubsection(2),theMagistrateshall,assoonasmaybe,allowthe
application.
(5)NotwithstandinganythingcontainedintheIndianEvidenceAct,1872(1of1872)ortheCodeofCriminal
Procedure,1973(2of1974),everycourttryinganoffenceunderthisAct,shalltreattheinventory, as certified by
theMagistrate,asprimaryevidenceinrespectofsuchoffence.
(6) Every officer acting under subsection (3) shall forthwith report the seizure tothe Court of Session
orAssistantSessionsJudgehavingjurisdictionforadjudgingtheconfiscation under section 29.
SeizuretobemadeinaccordancewithAct2of1974.
27.TheprovisionsoftheCodeofCriminalProcedure,1973shallapplyinsofarastheyarenotinconsistentwiththe
provisionsofthisActtoallseizuresmadeunderthisAct.
CHAPTERVI
ADJUDICATION
ConfiscationofarticleorcurrencyorsecurityobtainedincontraventionoftheAct.
28.Anyarticleorcurrencyorsecuritywhichisseizedundersection25shallbeliabletoconfiscationifsucharticle
orcurrencyorsecurityhasbeenadjudgedundersection29tohavebeenreceivedorobtainedincontraventionof
thisAct.
Adjudicationofconfiscation.
29.(1)Anyconfiscationreferredtoinsection28maybeadjudged
(a)withoutlimit,bytheCourtofSessionwithinthelocallimitsofwhosejurisdictiontheseizurewasmade;
and

(b)subjecttosuchlimitsasmaybeprescribed,bysuchofficer,notbelowtherankofanAssistantSessions
Judge,astheCentralGovernmentmay,bynotificationintheOfficialGazette,specifyinthisbehalf.
(2)Whenanadjudicationundersubsection(1)isconcludedbytheCourtofSessionorAssistantSessionsJudge,as
the case may be, the Sessions Judge or Assistant Sessions Judge may make such order as he thinks fit for the
disposal by confiscation or delivery of seized article or currency or security, as the case may be, to any person
claiming to be entitled to possession thereof or otherwise, or which has been used for the commission of any
offenceunderthisAct.
Procedureforconfiscation.
30. No order of adjudication of confiscation shall be made unless a reasonable opportunity of making a
representation against such confiscation has been given to the person from whom any article or currency or
securityhasbeenseized.
CHAPTERVII
APPEALANDREVISION
Appeal
31.(1)Anypersonaggrievedbyanyordermadeundersection29maypreferanappeal,
(a) where the order has been made by the Court of Session, to the High Court to which such Court is
subordinate;or
(b)wheretheorderhasbeenmadebyanyofficerspecifiedunderclause(b)ofsubsection(1)ofsection29,
to the Court of Session within the local limits of whose jurisdiction such order of adjudication of
confiscationwasmade,
withinonemonthfromthedateofcommunicationtosuchpersonoftheorder:
Providedthattheappellatecourtmay,ifitissatisfiedthattheappellantwaspreventedbysufficientcause
frompreferringtheappealwithinthesaidperiodofonemonth,allowsuchappealtobepreferredwithinafurther
periodofonemonth,butnotthereafter.
(2)Anyorganisationreferredtoinclause(f)ofsubsection(1)ofsection3,oranypersonorassociationreferred
to in section 6 or section 9, aggrieved by an order made in pursuanceofsection5orbyanorderoftheCentral
Governmentrefusingtogivepermissionunder thisAct, or by any order made by the Central Government under
subsection(2)orsubsection(4)ofsection12,orsubsection(1)ofsection14,asthecasemaybe,may,withinsixty
daysfromthedate ofsuchorder,preferanappealagainstsuchordertotheHighCourt within the local limits of
whosejurisdictiontheappellantordinarilyresidesorcarriesonbusinessorpersonallyworksforgain,or,where
theappellantisanorganisationorassociation, the principal office of such organisation or association is located.
(3) Every appeal preferred under this section shall be deemed to be an appeal from an original decree and the
provisionsofOrderXLIoftheFirstScheduletotheCodeofCivilProcedure,1908(5of1908),shall,asfarasmaybe,
applytheretoastheyapplytoanappealfromanoriginaldecree.
RevisionofordersbyCentralGovernment.
32. (1) The Central Government may, either of its own motion or on an application for revision by the person
registeredunderthisAct,callforandexaminetherecordofanyproceedingunderthisActinwhichanysuchorder
hasbeenpassedbyitandmaymakesuchinquiryorcausesuchinquirytobemadeand,subjecttotheprovisionsof
thisAct,maypasssuchorderthereonasitthinksfit.

(2)TheCentralGovernmentshallnotofitsownmotionreviseanyorderunderthissection ifthe orderhas been

mademorethanoneyearpreviously.
(3) In the case of an application for revision under this section by the person referred to in subsection (1), the
applicationmustbemadewithinoneyearfromthedateonwhichtheorderinquestionwascommunicatedtohim
orthedateonwhichheotherwisecametoknowofit,whicheverisearlier:
Provided that the Central Government may, if it is satisfied that such person was prevented by sufficient cause
frommakingtheapplicationwithinthatperiod,admitanapplicationmadeaftertheexpiryofthatperiod.
(4)TheCentralGovernmentshallnotreviseanyorderwhereanappealagainsttheorderliesbuthasnotbeenmade
andthetimewithinwhichsuchappealmaybemadehasnot expired or such person has not waived his right of
appealoranappealhasbeenfiledunderthisAct.
(5)Everyapplicationbysuchpersonforrevisionunderthissectionshallbeaccompaniedbysuchfee,asmaybe
prescribed.
Explanation.AnorderbytheCentralGovernmentdecliningtointerfereshall,forthepurposesofthissection,be
deemednottobeanorderprejudicialtosuchperson.
CHAPTERVIII
OFFENCESAND PENALTIES
Makingoffalsestatement,declarationordeliveringfalseaccounts.
33.Anyperson,subjecttothisAct,whoknowingly,
(a)givesfalseintimationundersubsection(c)ofsection9orsection18;or
(b)seekspriorpermissionorregistrationbymeansoffraud,falserepresentationorconcealmentof
materialfact,
shall,onconvictionbyacourt,beliabletoimprisonmentforatermwhichmayextendtosixmonthsorwithfineor
withboth.
Penaltyforarticleorcurrencyorsecurityobtainedincontraventionofsection10.
34. If any person, on whom any prohibitory order has been served under section 10, pays, delivers, transfers or
otherwisedealswith,inanymannerwhatsoever,anyarticleorcurrencyorsecurity,whetherIndianorforeign,in
contraventionofsuchprohibitoryorder,he shall be punished with imprisonment for a term which may extend to
three years, orwithfine,orwithboth;andnotwithstandinganythingcontainedintheCodeofCriminalProcedure,
1973(2of1974),thecourttryingsuchcontraventionmayalsoimposeonthepersonconvictedanadditionalfine
equivalent to the market value of the article or the amount of the currency or security in respect of which the
prohibitoryorderhasbeencontravenedbyhimorsuchpartthereofasthecourtmaydeemfit.
PunishmentforcontraventionofanyprovisionoftheAct.
35.Whoeveraccepts,orassistsanyperson,politicalpartyororganisationinaccepting,anyforeigncontributionor
anycurrencyorsecurityfromaforeignsource,incontraventionof any provision of this Act or any rule or order
madethereunder,shallbepunishedwithimprisonmentforatermwhichmayextendtofiveyears,orwithfine,orwithboth.
Powertoimposeadditionalfinewherearticleorcurrencyorsecurityisnotavailableforconfiscation.

36. Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), the court trying a
person,who,inrelationtoanyarticleorcurrencyorsecurity,whetherIndianorforeign,doesoromitstodoanyact
whichactoromissionwouldrendersucharticleorcurrencyorsecurityliabletoconfiscationunderthisAct,may,in
the event of the conviction of such person for the act or omission aforesaid, impose on such person a fine not
exceedingfivetimesthevalueofthearticleorcurrencyorsecurityoronethousandrupees,whicheverismore,if
sucharticleorcurrencyorsecurityisnotavailableforconfiscation,andthefinesoimposedshallbeinadditiontoany
otherfinewhichmaybeimposedonsuchpersonunderthisAct.
Penaltyforoffenceswherenoseparatepunishmenthasbeenprovided.
37.WhoeverfailstocomplywithanyprovisionofthisActforwhichnoseparatepenaltyhasbeenprovidedinthis
Actshallbepunishedwithimprisonmentforatermwhichmayextendtooneyear,orwithfineorwithboth.
Prohibitionofacceptanceofforeigncontribution.
38.Notwithstanding anythingcontainedinthisAct,whoever,havingbeen convictedofanyoffenceundersection
35orsection37,insofarassuchoffencerelatestotheacceptanceorutilisationofforeigncontribution,isagain
convicted of such offence shall notacceptanyforeigncontributionforaperiodoffiveyearsfromthedate ofthe
subsequentconviction.
Offencesbycompanies.
39.(1)WhereanoffenceunderthisActoranyruleorordermadethereunderhasbeencommittedbyacompany,
everypersonwho,atthetimetheoffencewascommitted,wasinchargeof,andwasresponsibleto,thecompanyfor
theconductofthebusinessofthecompany,aswellasthecompany,shallbedeemedtobeguiltyoftheoffenceand
shallbeliabletobeproceededagainstandpunishedaccordingly:
Providedthatnothingcontainedinthissubsectionshallrendersuchpersonliabletoanypunishmentifhe
provesthattheoffencewascommittedwithouthisknowledgeorthathehadexercisedallduediligencetoprevent
thecommissionofsuchoffence.
(2) Notwithstanding anything contained in subsection (1), where an offence under this Act or any rule or order
made thereunder has been committed by a company and it isprovedthattheoffencehasbeencommittedwith
theconsentorconnivanceof,orisattributable to any neglect on the part of, any director, manager, secretary or
other officerofthecompany,suchdirector,manager,secretaryorotherofficershallalsobedeemedtobeguiltyof
thatoffenceandshallbeliabletobeproceededagainstandpunishedaccordingly.
Explanation. For the purposes of this section,
(a)companymeansanybodycorporateandincludesafirm,society,tradeunion or other association of
individuals;and
(b) director, in relation to a firm, society, trade union or other association of individuals, means a
partner in thefirm ora member of the governingbody ofsuch society, trade union or other association of
individuals.
BaronprosecutionofoffencesundertheAct.
40. No court shall take cognizance of any offence under thisAct, except with theprevioussanctionoftheCentral
GovernmentoranyofficerauthorisedbythatGovernmentinthisbehalf.
Compositionofcertainoffences.
41. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) , any offence
punishableunderthisAct(whethercommittedbyanindividualorassociationoranyofficeroremployeethereof),
not being an offence punishable with imprisonment only, may, before the institution of any prosecution, be

compoundedbysuchofficersorauthoritiesandforsuchsumsastheCentralGovernmentmay,bynotificationinthe
OfficialGazette,specifyinthisbehalf.
(2)Nothinginsubsection(1)shallapplytoanoffencecommittedbyanindividualor association or its officer or
otheremployeewithinaperiodofthreeyearsfromthedateonwhichasimilaroffencecommittedbyitorhimwas
compoundedunderthissection.
Explanation. For the purposes of this section, any second or subsequent offence committed after the
expiryofaperiodofthreeyearsfromthedateonwhichtheoffencewaspreviously compounded, shall be
deemedtobeafirstoffence.
(3)Everyofficerorauthorityreferredtoinsubsection(1)shallexercisethepowerstocompoundanoffence,subject
tothedirection,controlandsupervisionoftheCentralGovernment.
(4)Everyapplicationforthecompoundingofanoffenceshallbemadetotheofficerorauthorityreferredtoinsub
section(1)insuchformandmanneralongwithsuchfeeasmaybeprescribed.
(5)Whereanyoffenceiscompoundedbeforetheinstitutionofanyprosecution,noprosecutionshallbeinstitutedin
relationtosuchoffence,againsttheoffenderinrelationtowhomtheoffenceissocompounded.
(6)Everyofficerorauthorityreferredtoinsubsection(1),whiledealingwithaproposalforthecompoundingofan
offenceforadefaultincompliancewithanyprovisionofthisActwhichrequiresbyanindividualorassociationorits
officerorotheremployeetoobtainpermissionorfileorregisterwith,ordeliverorsendto,theCentralGovernment
oranyprescribedauthorityanyreturn,accountorotherdocument,may,direct,byorder,ifheoritthinksfittodo
so,anyindividualorassociationoritsofficerorotheremployeetofileorregisterwith,suchreturn,accountorother
documentwithinsuchtimeasmaybespecifiedintheorder.
CHAPTERIX
MISCELLANEOUS
Powertocallofinformationordocument.
42.Anyinspectingofficerreferredtoinsection23whoisauthorisedinthisbehalfbytheCentralGovernmentmay,
duringthecourseofanyinspectionofanyaccountorrecordmaintainedbyanypoliticalparty,person,organisation
orassociationinconnectionwiththecontraventionofanyprovisionofthisAct,
(a) call for information from any person for the purpose of satisfying himself whether there has been any
contraventionoftheprovisionsofthisActorruleorordermade thereunder;
(b)requireanypersontoproduceordeliveranydocumentorthingusefulorrelevantto such inspection;
(c)examineanypersonacquaintedwiththefactsandcircumstancesofthecaserelatedtotheinspection.
InvestigationintocasesundertheAct.
43.NotwithstandinganythingcontainedintheCodeofCriminalProcedure,1973(2of1974),anyoffencepunishable
under this Act may also be investigated into by such authority as the Central Government may specify in this
behalf and the authority so specified shall have all the powers which an officerincharge of a police station has
whilemakinganinvestigationintoacognizableoffence.
ReturnsbyprescribedauthoritytoCentralGovernment.
44.Theprescribed authorityshallfurnishtotheCentralGovernmentatsuchtimeand in such form and manner
suchreturnsandstatementsasmaybeprescribed.

Protectionofactiontakeningoodfaith.
45. No suit or other legal proceedings shall lie against the Central Government or the authority referred to in
section44oranyofitsofficersinrespectofanylossordamagecausedorlikelytobecausedbyanythingwhichisin
good faith done or intended to be done in pursuance of the provisions of this Act or, any rule or order made
thereunder.
PowerofCentralGovernmenttogivedirections.
46.TheCentralGovernmentmaygivesuchdirectionsasitmaydeemnecessarytoanyotherauthorityoranyperson
orclassofpersonsregardingthecarryingintoexecutionoftheprovisionsofthisAct.
Delegationofpowers.
47.TheCentralGovernmentmay,bynotification,directthatanyofitspowersorfunctions under thisAct, except
powertomakerule undersection48,shall, inrelationtosuchmattersandsubjecttosuchconditions,ifany,may
bespecifiedinthenotification,beexercisedordischargedalsobysuchauthorityasmaybespecified.
Powertomakerules.
48.(1)TheCentralGovernmentmay,bynotification,makerulesforcarryingouttheprovisionsofthisAct.
(2)Inparticular,andwithoutprejudicetothegeneralityoftheforegoingpower,suchrulesmayprovideforallor
anyofthefollowingmatters,namely:
(a)thevalueofthearticlewhichmaybespecifiedundersubclause(i)ofclause(h)ofsubsection(1)of
section2;
(b)theauthoritywhichmaybespecifiedunderclause(p)ofsubsection(1)ofsection2;
(c)acceptanceorretentionofgiftorpresentationunderclause(d)ofsection4;
(d)guidelinesspecifyingthegroundorgroundsonwhichanorganisationmaybespecifiedasanorganisation
ofpoliticalnatureundersubsection(1)ofsection5;
(e)theactivitiesorbusinesswhichshallbeconstruedasspeculativebusinessundertheprovisotoclause(a)
ofsubsection(1)ofsection8;
(f)theelementsandthemanner inwhichtheadministrativeexpensesshallbecalculated under subsection
(2)ofsection8;
(g)thetimewithinwhichandthemannerinwhichanypersonorclassofpersons oranassociationmaybe
requiredtofurnishintimationregardingtheamountofforeigncontributionreceivedunderclause(c)ofsection
9;
(h)thetimewithinwhichand themannerinwhichanypersonorclassofpersonsmayberequiredtofurnish
intimationregardingforeignhospitalityunderclause(e)ofsection9;
(i)themannerinwhichthecopyoftheorderoftheCentralGovernmentshallbeserveduponanypersonunder
section10;
(j) the form and manner in which the application for grant of certificate of registration or giving of prior
permissionundersubsection(1)ofsection12;
(k)thefeetobeaccompaniedbytheapplicationundersubsection(1)ofsection12;
(l)thetermsandconditionsforgrantingacertificateorgivingpriorpermissionunderclause(g)ofsubsection
(4)ofsection12;

(m)themannerofutilisingtheforeigncontributionunderclause(b)ofsubsection(2)ofsection13;
(n)theauthoritywithwhomtheforeigncontributiontobevestedundersubsection(1)ofsection15;
(o) theperiodwithin which and themanner inwhich theforeign contribution shall be managed under sub
section(2)ofsection15;
(p) the form and manner in which the application for a renewal of certificate of registration shall be made
undersubsection(2)ofsection16;
(q)thefeetobeaccompaniedbytheapplicationforrenewalofcertificateundersubsection(2)ofsection16;
(r)theprescribedamountofforeignremittance,theformandmannerinwhichtheforeignremittancereceived
byeverybankorauthorisedpersoninforeignexchangeshallbereportedundersubsection(2)ofsection17;
(s)thetimewithinwhichandthemannerinwhichthepersonwhohasbeengrantedcertificateofregistration
orgivenpriorpermissionunderthisActshallgiveintimationundersection18;
(t) the form and manner in which account of any foreign contribution and the manner in which such
contributionhasbeenutilisedshallbemaintainedundersection19;
(u)thetimewithinwhichandthemannerinwhichacandidateforelectionshallgiveintimationundersection
21;
(v)themannerandproceduretobefollowedindisposingoftheassetsundersection22;
(w)thelimitssubjecttowhichanyconfiscationmaybeadjudgedunderclause(b)ofsubsection(1)ofsection
29;
(x)thefeetobeaccompaniedalongwitheveryapplicationforrevisionundersubsection(5)ofsection32;
(y) the form and manner for making of an application for compounding of an offence and the fee therefor
undersubsection(4)ofsection41;
(z)theformandmannerinwhichandthetimewithinwhichreturnsandstatements to be furnished by the
prescribedauthorityundersection44;
(za)anyothermatterwhichisrequiredtobe,ormaybe,prescribed.
OrdersandrulestobelaidbeforeParliament.
49.Everyordermadeundersection5andeveryrulemadebytheCentralGovernmentunder thisAct shall be laid,
as soon as may be after it is made, before each House of Parliament while it is in session for a total period of
thirtydayswhichmaybecomprisedinonesessionorintwoormoresuccessivesessions,andif,beforetheexpiry
of the session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the order or rule or both Houses agree thattheorderorruleshouldnotbemade,the
order or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so,
however,thatanysuchmodificationorannulmentshallbewithoutprejudicetothevalidityofanythingpreviously
doneunderthatorderorrule.
Powertoexemptincertaincases.
50.IftheCentralGovernmentisofopinionthatitisnecessaryorexpedientintheinterestsofthegeneralpublicso
to do, it may, by order and subject to such conditions as may be specified in the order, exempt any person or
associationororganisation(notbeingapoliticalparty),oranyindividual(notbeingacandidateforelection)fromthe
operationofalloranyoftheprovisionsofthisActandmay,asoftenasmaybenecessary,revokeormodify such
order.

ActnottoapplytocertainGovernmenttransactions.
51. Nothing contained in this Act shall apply to any transaction between theGovernmentofIndiaandthe
Governmentofanyforeigncountryorterritory.
Applicationofotherlawsnotbarred.
52.Theprovisions ofthisActshall beinaddition to, andnot in derogation of,theprovisionsofanyotherlawfor
thetimebeinginforce.
Powertoremovedifficulties.
53.(1)IfanydifficultyarisesingivingeffecttotheprovisionsofthisAct,theCentral Government may, by order,
published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may
appeartobenecessary forremovingthedifficulty:
Provided that no order shall be made under this section after the expiry of two years from the
commencement of thisAct.
(2)Everyordermadeunderthissectionshallbelaid,assoonasmaybeafteritismade,beforeeachHouseof
Parliament.
Repealandsaving.
54.(1)TheForeignContribution(Regulation)Act,1976(49of1976)(hereafterreferredtoastherepealedAct)is
herebyrepealed.
(2)Notwithstandingsuchrepeal,
(a)anythingdoneoranyactiontakenorpurportedtohavebeendoneortakenundertherepealedActshall,in
sofarasitisnotinconsistentwiththeprovisionsofthisAct,bedeemedtohavebeendoneortakenunderthe
correspondingprovisionsofthisAct;
(b)anyorganisationofapoliticalnature,notbeingapoliticalparty,towhomthepriorpermissionwasgranted
under section 5 of the repealed Act, shall continue to be the organisation of a political nature, not being a
politicalparty,underclause(f)ofsubsection(1)ofsection3ofthisAct,tillsuchpermissioniswithdrawnby
theCentralGovernment;
(c)permissiontoacceptforeignhospitalitygrantedundersection9oftherepealedActshallbedeemedtobethe
permissiongrantedundersection6ofthisActuntilsuchpermissioniswithdrawnbytheCentralGovernment;
(d) any association prohibited from accepting any foreign contribution under clause (a) of section 10 of the
repealed Act, in so far as it is not inconsistent with the provisions of this Act, shall be deemed to be an
associationprohibitedfromacceptinganyforeigncontributionundersection9ofthisAct;
(e) permission obtained under clause (b) of section 10 of the repealed Act shall, in so far as it is not
inconsistent with the provisions of this Act, be deemed to be the permission until such permission is
withdrawnbytheCentralGovernment;
(f)anyorderissuedundersection12oftherepealedActshallbedeemedtobeanorderissuedundersection10
ofthisAct;
(g)anyorderissuedundersection31oftherepealedActexemptinganyassociationoranyindividualshall
bedeemedtobeanorderundersection50ofthisActtillsuchorderisvariedorrevoked.
(3) Save as provided in subsection (2), mention of particular matters in that sub section shall not be held to
prejudiceoraffectthegeneralapplicationofsection6oftheGeneralClausesAct,1897(10of1897),withregardto
theeffectofrepeal.

*Dated2692010