18 The Foreign Contribution (Regulation) Act, 2010

Objectives of FCRA: To Regulate the acceptance and utilisation of Foreign Contribution or Foreign Hospitality by certain persons from foreign source.

18.1 - Important Definitions

Foreign Contribution Foreign Hospitality Foreign Source Person

– Sec. 2(1)(h) – Sec. 2(1)(i) – Sec. 2(1)(j) – Sec. 2(1)(m)

Foreign contribution (FC) means the donation, delivery or Foreign source includes: The term person includes:
transfer made by any foreign source of: (i) Govt. of any foreign country or territory & its agencies; (i) an individual;
(i) any article, not being an article given to a person as a (ii) any international agency, not being the UN or its specialized (ii) a HUF;
agencies, World Bank, IMF or other agencies notified by C.G.; (iii) an association;
gift for his personal use, if the market value, in India, of
(iii) a foreign company; (iv) a company registered
such article, on the date of such gift, is not more than
(iv) a corporation, incorporated in a foreign country or territory; u/s 8 of Companies
such sum as may be specified from time to time, by the (v) a multi-national corporation; Act, 2013.
C.G. by the rules made by it in this behalf (Amount (vi) a company whose more than 50% of nominal value of share
specified is ₹ 1,00,000 – Rule 6A); capital is held, by one or more of the following, namely:
(ii) any currency, whether Indian or foreign; (A) the Government of a foreign country or territory;
(iii) any security as defined in the SCRA, 1956 & includes (B) the citizens of a foreign country or territory;
any foreign security as defined in the FEMA Act, 1999. (C) corporations incorporated in a foreign country or
territory;
(D) trusts, societies or other AOI, formed or registered in a
foreign country or territory;
Foreign hospitality means any offer, not being a purely casual one, made (E) Foreign company;
in cash or kind by a foreign source for providing a person (vii) a trade union in any foreign country or territory;
• with the costs of travel to any foreign country or territory (viii) a foreign trust or a foreign foundation;
or (ix) a society, club or other AOI formed or registered outside India;
• with free boarding, lodging, transport or medical treatment. (x) a citizen of a foreign country.

Compiled by: CA. Pankaj Garg Page 1

 18.2 – Regulation of Foreign Contribution (FC) and Foreign Hospitality [Sec. 3-Sec. 8] (Part I)

Prohibition to accept Foreign Person to whom Sec. 3 shall not apply Procedure to notify an organisation of a political
Contribution (Sec. 3) (Sec. 4) nature (Sec. 5)

No FC shall be accepted by any: Nothing contained in Sec. 3 shall apply to the acceptance, by any • C.G. may, having regard to the activities/ideology/ programme of
(a) candidate for election; person specified in that section, of any FC where such any organisation, by an order published in the Official Gazette,
(b) correspondent, columnist, contribution is accepted by him: specify such organisation as an organisation of a political nature
cartoonist, editor, owner, printer or (a) by way of salary, wages or other remuneration due to him not being a political party.
publisher of a regd. newspaper; or to any group of persons working under him, from any • Before making an order, C.G. shall give the organisation, a notice
(c) public servant, Judge, Govt. foreign source or by way of payment in the ordinary course in writing informing it of the grounds, on which it is proposed to
servant or employee of any of business transacted in India by such foreign source; or be specified as an organisation of political nature.
corporation or any other body (b) by way of payment, in the course of international trade or • Organisation may within a period of 30 days from the date of the
controlled or owned by the Govt.; commerce, or in the ordinary course of business notice, make a representation to the C.G. giving reasons for not
(d) member of any Legislature; transacted by him outside India; or specifying such organisation as an organisation of political
(e) political party or office-bearer (c) as an agent of a foreign source in relation to any nature.
thereof; transaction made by such foreign source with the C.G. or • C.G. may entertain the representation after the expiry of the said
(f) organisation of a political nature as S.G.; or period of 30 days, if it is satisfied that the organisation was
may be specified u/s 5 by the C.G.; (d) by way of a gift or presentation made to him as a member prevented by sufficient cause from making the representation
(g) association or company engaged in of any Indian delegation; or within 30 days.
the production or broadcast of (e) from his relative; or • C.G. may, if it considers it appropriate, forward the
audio news or audio-visual news or (f) by way of remittance received, in the ordinary course of representation to any authority to report on such representation.
current affairs programmers’ business through any official channel, post office, or any • C.G. may, after considering the representation and the report of
through any electronic mode, or authorised person in foreign exchange under the FEMA, the authority, specify such organisation as an organisation of a
any other electronic form as 1999; or political nature not being a political party and make an order
defined in the IT Act, 2000 or any (g) by way of any scholarship, stipend or any payment of like accordingly.
other mode of mass nature. • Every order made under this section shall be made within a
communication; Rule 6 of FCRR, 2011 period of 120 days from the date of issue of notice informing the
(h) Correspondent or columnist, Any person receiving FC in excess of ₹ 1 Lakh or equivalent grounds. In case no order is made within the said period of 120
cartoonist, editor, owner of the thereto in a financial year from the relatives shall inform the C.G. days, the C.G. shall, after recording the reasons therefor, make an
association or company referred to regarding the details of the FC received by him in electronic order under this section within a period of 60 days from the
in clause (g). form in Form FC 1 within 30 days of receipt of such contribution. expiry of the said period of 120 days.

Compiled by: CA. Pankaj Garg Page 2

 18.3 – Regulation of Foreign Contribution and Foreign Hospitality [Sec. 3-Sec. 8] (Part II)
Restriction on acceptance of foreign hospitality
(Sec. 6)
• Members of a Legislature,
• Office bearers of political parties,
• Judges,
• Government servants,
• Employees of any corporation or any other body owned or
controlled by the Government
shall not, while visiting any country or territory outside India,
accept any foreign hospitality, except with the prior permission
from C.G.
Exception
No permission is required for an emergent medical aid needed on
account of sudden illness contracted during a visit outside India.
However, an intimation to C,G. is to be made within 1 month from
the date of receipt of such hospitality, and the source from which,
and the manner in which, such hospitality was received by him.
Rule 7 of FCRR, 2011
(1) Persons specified u/s 6 who wishes to avail foreign
hospitality shall apply to the C.G. in electronic form in
Form FC-2.
(2) Application shall be accompanied by an invitation letter
from the host or the host country.
(3) Application must reach the appropriate authority ordinarily
2 weeks before the proposed date of onward journey.
(4) In case of emergent medical aid due to sudden illness during
a visit abroad, acceptance of foreign hospitality shall be
required to be intimated to the C.G. within one month of
such receipt.
(5) However, no such intimation is required if the value of such
hospitality in emergent medical aid is upto ₹ 1 lakh or
equivalent thereto.
Compiled by: CA. Pankaj Garg
Prohibition to transfer foreign Restriction to utilize foreign contribution for
contribution to other person (Sec. 7) administrative purpose (Sec. 8)
No person who—
(a) is registered and granted a certificate, or has obtained prior permission under this Act; and
(b) receives any foreign contribution,
shall transfer such foreign contribution to any other person.
Every person, who is registered and granted a certificate or given prior permission and receives any FC, shall-
(a) utilise such contribution for the purposes for which the contribution has been received:
Provided that any FC or any income arising out of it shall not be used for speculative business.
(b) not defray sum exceeding 20% of such contribution, received in a FY, to meet administrative expenses:
Provided that expenses exceeding 20% of such contribution may be defrayed with prior approval of the C.G.
Speculative Activities - Rule 4 Administrative Expenses - Rule 5 of FCRR, 2011
(a) Any activity or investment 1. Salaries, wages, travel expenses or any remuneration realised by the
that was an element of risk Members of Executive Committee or Governing Council of the person;
of appreciation or 2. Expenses towards hiring of personnel for management of the activities of
depreciation of the original the person and salaries, wages or any kind of remuneration paid, including
investment, linked to cost of travel, to such personnel;
market forces, including 3. Expenses related to consumables like electricity & water charges, telephone
investment in mutual funds & postal charges, stationery and printing charges, transport and travel
or in shares; charges and expenditure on office equipment;
(b) Participation in any scheme 4. Cost of accounting for and administering funds;
that promises high returns 5. Expenses towards running and maintenance of vehicles;
like investment in chits or 6. Cost of writing and filing reports;
land or similar assets not 7. Legal and professional charges; and
directly linked to the 8. Rent of premises, repairs to premises and expenses on other utilities.
declared aims and Amounts not to be counted as administrative expenses
objectives of the • Salaries of personnel engaged in training or for collection or analysis of field
organisation or association. data of an association primarily engaged in research or training;
Note: A debt-based secure • Expenses incurred directly in furtherance of the stated objectives of the
investment shall not be treated welfare-oriented organisation such as salaries to doctors of hospital,
as speculative investment. salaries to teachers of school etc.
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Registration of certain
persons with C.G. (Sec. 11)
No person having a definite
cultural, economic, educational,
religious or social programme
shall accept FC unless such
person obtains a certificate of
registration from the C.G.
Rule 9 of FCRR, 2011
Application shall be in
electronic form (Form FC-3A)
with an affidavit executed by
each office bearer and key
functionary and member in
Proforma 'AA'.
Every person may, if it is not
registered with the C.G., accept
any FC only after obtaining the
prior permission of the C.G. and
such prior permission shall be
valid for the specific purpose for
which it is obtained and from the
specific source.
Rule 9 of FCRR, 2011
Application for obtaining prior
permission shall be in electronic
form (Form FC-3B) with an
affidavit executed by each office
bearer and key functionary and
member in Proforma 'AA'.
Compiled by: CA. Pankaj Garg
18.4 – Registration [Sec. 11 - Sec. 16] (Part I)
Grant of certificate of registration (Sec. 12)
1. Application for grant of certificate or prior
permission, shall be made to C.G. in prescribed
form and manner along with prescribed fee.
Rule 9 of FCRR, 2011
• Application for grant of prior permission
shall be accompanied by a fee of ₹ 5,000.
• Application for the grant of registration shall
be accompanied by a fee of ₹ 10,000.
2. Every person who makes an application shall be
required to open ''FCRA Account'' in the manner
specified in Sec. 17.
3. If the application is not in the prescribed form
or does not contain specified particulars, the
C.G. shall, by an order, reject the application.
4. If specified conditions are satisfied, C.G. may,
within 90 days from the date of receipt of
application, register such person and grant him
a certificate or give him prior permission, as the
case may be, subject to such terms and
conditions as may be prescribed.
Rule 9 of FCRR, 2011
If the value of foreign contribution on date of
final disposal of application for prior permission
is over ₹ 1 crore, the C.G. may permit receipt of
foreign contribution in such instalments, as it
may deem fit:
Provided that the 2nd & subsequent instalment
shall be released after submission of proof of
utilisation of 75% of foreign contribution
received in the previous instalment & field
inquiry of the utilisation of foreign contribution.
5. If C.G. does not grant, within 90 days, a
certificate or give prior permission, it shall
communicate the reasons there for to applicant.
6. Specified Condition [Sec. 12(4)]:
(a) The 'person' making an application:
1. is not fictitious or benami;
2. has not been prosecuted or convicted for indulging in activities aimed at
conversion from one religious faith to another;
3. has not been prosecuted or convicted for creating communal tension or
disharmony in any specified district or other part of the country;
4. has not been found guilty of diversion or mis-utilisation of its funds;
5. is not engaged or likely to engage in propagation of sedition;
6. is not likely to use the foreign contribution for personal gains;
7. has not contravened any of the provisions of this Act;
8. has not been prohibited from accepting foreign contribution;
(b) The person making an application for registration has undertaken reasonable
activity in its chosen field for the benefit of the society.
(c) The person making an application for giving prior permission has prepared a
reasonable project for the benefit of the society.
(d) In case, the applicant is an individual, he has neither been convicted under any
law nor any prosecution for any offence is pending against him.
(e) In case the applicant is a person other than an individual, any of its directors or
office bearers has neither been convicted under any law nor any prosecution for
any offence is pending against him.
(f) the acceptance of FC by the association/person is not likely to affect prejudicially:
(i) the sovereignty and integrity of India;
(ii) the security, strategic, scientific or economic interest of the State;
(iii) the public interest;
(iv) freedom or fairness of election to any Legislature;
(v) friendly relation with any foreign State;
(vi) harmony between religious, racial, social, linguistic, regional groups, castes
or communities.
(g) the acceptance of foreign contribution
(i) shall not lead to incitement of an offence;
(ii) shall not endanger the life or physical safety of any person.
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 18.5 – Registration [Sec. 11 - Sec. 16] (Part II)
Grant of certificate of registration (Sec. 12) Suspension of certificate (Sec. 13)
Rule 9 of FCRR, 2011 • Where the C.G. is satisfied that pending
• A person seeking registration u/s 12(4)(b) shall be in existence for 3 consideration of the question of
years and have spent a minimum amount of ₹ 15 lakh on its core cancelling the certificate on any of the
activities for the benefit of society during the last 3 financial years. grounds mentioned in Sec. 14(1), it is
• A person seeking prior permission for receipt of specific amount from a
necessary so to do, it may, by order in
specific donor for carrying out specific activities mentioned in Sec.
writing, suspend the certificate for a
12(4)(c) shall meet the following criteria, namely:
(i) submit a specific commitment letter from the donor indicating the
period of 180 days or such further
amount of foreign contribution and the purpose for which it is period, not exceeding 180 days as
proposed to be given; may be specified in the order.
(ii) for the Indian recipient persons and foreign donor organisations • Every person whose certificate has
having common members, prior permission shall be granted to the been suspended shall-
person subject to it satisfying the following conditions, namely:  not receive any foreign
(A) the chief functionary of the recipient person shall not be a contribution during the period of
part of the donor organisation;
suspension of certificate.
(B) 75% of the office-bearers or members of the governing body
 utilise, in the prescribed manner,
of the person shall not be members or employees of the
foreign donor organisation; the foreign contribution in his
(C) in case of foreign donor organisation being a single custody with the prior approval of
individual that individual shall not be the chief functionary the C.G.
or office bearer of the recipient person; and Rule 14 of FCRR, 2011
(D) in case of a single foreign donor, 75%. of the office bearers or The unspent amount that can be utilised in case
members of the governing body of the recipient person shall of suspension of a certificate of registration may
be as under:
not be the family members or close relatives of the donor.
7. Where the C.G. refuses the grant of certificate or does not give prior (i) up to 25% of the unutilised amount may
permission, it shall record in its order the reasons there for and furnish be spent, with the prior approval of the
a copy thereof to the applicant. However, reasons for refusal not C.G., for the declared aims and objects for
required in cases where there is no obligation to give any information or which the foreign contribution was
documents or records or papers under the Right to Information Act, received.
2005. (ii) Remaining 75% of the unutilised foreign
8. The certificate granted shall be valid for a period of 5 years from the contribution shall be utilised only after
date of its issue. Prior permission shall be valid for the specific purpose revocation of suspension of the certificate
of registration.
or specific amount of foreign contribution proposed to be received.
Compiled by: CA. Pankaj Garg
Cancellation of Certificate (Sec. 14)
The C.G. may, by an order, cancel the certificate if:
(a) the holder of the certificate has made a
statement in, or in relation to, the
application for the grant of registration or
renewal thereof, which is incorrect or false;
or
(b) the holder of the certificate has violated any
of the terms and conditions of the certificate
or renewal thereof; or
(c) in the opinion of the C.G., it is necessary in
the public interest to cancel the certificate;
or
(d) the holder of certificate has violated any of
the provisions of this Act or rules or order
made thereunder; or
(e) if the holder of the certificate has not been
engaged in any reasonable activity in its
chosen field for the benefit of the society for
2 consecutive years or has become defunct.
Any person whose certificate has been cancelled
shall not be eligible for registration or grant of
prior permission for a period of 3 years from the
date of cancellation of such certificate.
Rule 15 of FCRR, 2011
If the certificate of registration of a person who
has opened an FCRA Account u/s 17 is cancelled,
the amount of foreign contribution lying
unutilised in that Account shall vest with the
prescribed authority under the Act.
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 18.6 – Registration [Sec. 11 - Sec. 16] (Part III)

Surrender of Mngt. of FC of person whose

Renewal of certificate (Sec. 16)
certificate has been cancelled
certificate (Sec. 14A) or surrendered (Sec. 15)

On a request being made, the C.G. may permit any
person to surrender the certificate granted under
this Act, if, after making such inquiry as it deems
fit, it is satisfied that such person has not
contravened any of the provisions of this Act, and
the management of FC and asset, if any, created
out of such contribution has been vested in the
authority as provided in Sec. 15(1).
Rule 15A of FCRR, 2011
Application for surrender of the certificate of
registration shall be made in electronic form in
Form FC-7.
Rule 10 of FCRR, 2011
The validity of certificate surrendered u/s 14A of
the Act shall be deemed to have expired on the
date of acceptance of the request by the C.G.
1. The FC & assets created out of FC in custody of every
person whose certificate has been cancelled or
surrendered shall vest in such authority as may be
prescribed. [Addl. Chief Secretary / Principal
Secretary (Home) of the concerned State].
2. Such authority may, if it considers necessary manage
the activities of the person, as the C.G. may direct and
such authority may utilise the foreign contribution or
dispose of the assets created out of it in case adequate
funds are not available for running such activity.
3. Authority shall return the FC and the assets vested
upon it to the person, if such person is subsequently
registered under this Act.
1. Every person who has been granted a certificate, shall have such certificate renewed within 6 months before the expiry
of the period of the certificate.
2. Application for renewal of the certificate shall be made to the C.G. in prescribed form and manner with prescribed fee.
3. The C.G. shall renew the certificate, ordinarily within 90 days from the date of receipt of application subject to such
terms and conditions as it may deem fit and grant a certificate of renewal for a period of 5 years.
In case the C.G. does not renew the certificate within the period of 90 days, it shall communicate the reasons there for to
the applicant.
Rule 12 of FCRR, 2011
(1) Certificate of regn. issued to a person shall be liable to be renewed after the expiry of 5 years from the date of its issue.
(2) Application for renewal shall be made to the C.G. in electronic form in Form FC-3C accompanied with an affidavit
executed by each office bearer, key functionary and member in Proforma ‘AA’ within 6 months before from the date of
expiry of the certificate of registration.
(3) Every person seeking renewal of the certificate shall open an FCRA Account and mention details in his application.
(4) An application made for renewal of the certificate of registration shall be accompanied by a fee of ₹ 5,000 only.
(5) No person whose certificate of registration has ceased to exist shall either receive or utilise the FC until the certificate is
renewed.
(6) If no application for renewal of registration is received before expiry of validity of the certificate, validity of certificate
shall be deemed to have ceased from the date of completion of the period of 5 years from the date of the grant of
certificate of registration.
(7) The amount of FC lying unutilised in FCRA Account and utilisation account of a person whose certificate of registration
is deemed to have ceased and assets, if any, created out of the FC, shall vest with the prescribed authority under the Act
until the certificate is renewed or fresh registration is granted by the C.G.
(8) If the validity of the certificate of registration of a person has ceased in accordance with the provisions of these rules, a
fresh request for the grant of a certificate of registration may be made by the person to the Central Government as per
the provisions of rule 9.
(9) In case a person provides sufficient grounds, in writing, explaining the reasons for not submitting the certificate of
registration for renewal within the stipulated time, his application may be accepted for consideration along with the
requisite fee and with late fees of ₹ 5000 (Five Thousand only), but not later than one year after the expiry of the
original certificate of registration.

Compiled by: CA. Pankaj Garg Page 6

 18.7 – Accounts, Intimation, Audit and Disposal of Assets, etc. (Sec. 17 - Sec. 22)
FC through scheduled bank (Sec. 17)
(1) Every person who has been granted certificate or prior
permission u/s 12 shall receive FC only in an account
designated as "FCRA Account" by the bank, which shall
be opened by him for the purpose of remittances of
foreign contribution in specified branch of SBI at New
Delhi.
Such person may also open another ''FCRA Account'' in
any of the scheduled bank for the purpose of keeping or
utilising the FC which has been received from his
''FCRA Account'' in the specified branch of SBI at New
Delhi.
Such person may also open one or more accounts in one
or more scheduled banks to which he may transfer for
utilising any FC received by him in his ''FCRA Account''
in the specified branch of the SBI at New Delhi or kept
by him in another ''FCRA Account'' in a scheduled bank.
No funds other than FC shall be received or deposited in
any such account.
(2) Specified branch of the SBI at New Delhi or the branch of
the scheduled bank where the person has opened his
FCRA Account shall report to such authority as may be
specified:
(a) the prescribed amount of foreign remittance;
(b) the source and manner in which the foreign
remittance was received; and
(c) other particulars,
in such form and manner as may be prescribed.
Rule 16 of FCRR, 2011
The bank shall report to the C.G. within 48 hours any
transaction in respect of receipt or utilisation of any FC by any
person whether or not such person is registered or granted
prior permission under the Act.
Compiled by: CA. Pankaj Garg
Intimation (Sec. 18) Maintenance of A/cs (Sec. 19)
1. Every person who has been granted a certificate or given prior approval Every person who has been
shall give an intimation to the C.G.: granted a certificate or given
• as to the amount of each FC received by it, prior approval under this Act
• the source from which and the manner in which such FC was received, shall maintain, in such form
and and manner as may be
• the purposes for which, and the manner in which such FC was utilised prescribed-
by him. (a) an account of any FC
2. Every person receiving FC shall submit a copy of a statement with the received by him; and
particulars of FC received duly certified by officer of the bank or (b) a record as to the manner
authorised person in foreign exchange and furnish the same to the C.G. in which such contribution
along with the intimation. has been utilised by him.
Rule 17 of FCRR, 2011
1. Every person who receives FC, shall submit a signed report in Form FC-4 Audit of Accounts (Sec. 20)
with scanned copies of income and expenditure statement, receipt and
payment account and B/S for every FY beginning on the 1st day of April
within 9 months of the closure of the financial year.
• If any person who has been
2. Annual return in Form FC-4 shall reflect the FC received in the exclusive
granted a certificate or given
bank account and include the details in respect of the funds transferred
prior permission, fails to furnish
to other bank accounts for utilisation.
any intimation or intimation so
3. If the FC relates only to articles, the intimation shall be submitted in
Form FC-1. furnished is not in accordance
4. If the FC relates to foreign securities, the intimation shall be submitted in with law or if, after inspection of
Form FC-1. such intimation, the C.G. has any
5. Every report submitted shall be duly certified by a CA. reasonable cause to believe that
6. Every such return in Form FC-4 shall also be accompanied by a copy of any provision of this Act has
statement of account from the bank where the exclusive foreign been contravened, the C.G. may
contribution account is maintained by the person, duly certified by an order, by specified officer, audit
officer of such bank. of any books of account kept or
7. The accounting statements referred to above shall be preserved by the maintained by such person.
person for a period of 6 years. • Every such officer shall have the
8. A 'Nil' report shall be furnished even if no foreign contribution is right to enter in or upon any
received during a financial year.
premises at any reasonable
Where FC has not been received or utilised during a financial year, it shall not
hour, before sunset and after
be required to enclose certificate from CA or income and expenditure
sunrise, for the purpose of
statement or receipt and payment account or balance sheet with Form FC-4.
auditing the said books.
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 18.8 – Adjudication (Sec. 28 – Sec. 30) and Appeals and Revision (Sec. 31 – Sec. 32)
Adjudication (Sec. 28 – Sec. 30)
Confiscation of article or currency or security obtained in
contravention of the Act
Sec. 28
Any article or currency or security which is seized under the
Act shall be liable to confiscation if such article or currency or
security has been adjudged u/s 29 to have been received or
obtained in contravention of this Act.
Adjudication of confiscation
(1) Any confiscation referred to in Sec. 28 may be adjudged:
Sec. 31
(a) without limit, by the Court of Session within the
local limits of whose jurisdiction the seizure was
made; and
(b) subject to prescribed limits, by such officer, not
below the rank of an Assistant Sessions Judge, as
notified by C.G.
(2) When an adjudication is concluded by the Court of
Session or Assistant Sessions Judge, as the case may be,
Sec. 29
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 offence under this Act.
Rule 19 of FCRR, 2011
An officer referred to in Sec. 29(1)(b), may adjudge
Sec. 32
confiscation in relation to any article or currency seized u/s
25, if the value of such article or the amount of such currency
seized does not exceed ₹ 10,00,000.
Procedure for confiscation
No order of adjudication of confiscation shall be made unless
Sec. 30
a reasonable opportunity of making a representation has
been given to the person from whom any article or currency
or security has been seized.
Compiled by: CA. Pankaj Garg
Appeals and Revision (Sec. 31 – Sec. 32)
Appeal
(1) Where any person is aggrieved by any order, may prefer an appeal as per below provision:
Order passed by Appeal to be made
Court of Session to the High Court to which such Court is subordinate
Any officer specified Court of Session within the local limits of whose jurisdiction
u/s 29(1)(b) such order of adjudication of confiscation was made
Appeal may be preferred within 1 month from the date of communication of the order. However, the
appellate court may, allow such appeal within a further period of 1 month, but not thereafter.
(2) Any organisation referred to in Sec. 3(1)(f), or any person or association referred to in Sec. 6 or Sec. 9,
aggrieved
• by an order made in pursuance of Sec. 5 or
• by an order of the C.G. refusing to give permission under this Act, or
• by any order made by the C.G. u/ss 12(2) or 12(4), or Sec. 14(1), as the case may be,
may, prefer an appeal against such order to the High Court within the local limits of whose
jurisdiction the appellant ordinarily resides or carries on business or personally works for gain, or,
where the appellant is an organisation or association, the principal office of such organisation or
association is located within 60 days from the date of such order.
Revision of orders by C.G.
• C.G. may either-
 of its own motion or
 on an application for revision by the person registered under this Act,
call for and examine the record of any proceeding under this Act and may make necessary inquiry
and, may pass such order thereon as it thinks fit.
• C.G. shall not of its own motion revise any order if the order has been made more than 1 year
previously.
• Application must be made within 1 year from the date on which the order in question was
communicated to the person or the date on which he otherwise came to know of it, whichever is
earlier.
Rule 20 of FCRR, 2011
Application for revision of an order shall be made to the Secretary, MHA, GOI, New Delhi on a plain paper
and it shall be accompanied by a fee of ₹ 3,000 only.
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 18.9 – Offences and Penalties (Sec. 33 – Sec. 41) and Misc. (Sec. 42 – Sec. 54)
Offences and Penalties (Sec. 33 to Sec. 41)
Making of false statement, declaration or
delivering false accounts
Sec. 33
Imprisonment for a term which may extend to 6
months or with fine or with both.
Penalty for article or currency or security
obtained in contravention of section 10
Sec. 34
Imprisonment for a term which may extend to 3
years, or with fine, or with both.
Punishment for contravention of any provisions
of the act
Sec. 35
Imprisonment for a term which may extend to 5
years, or with fine, or with both.
Power to impose additional fine where article
or currency or security is not available for
confiscation
Sec. 36
Fine not exceeding 5 times the value of the article
or currency or security or ₹ 1,000, whichever is
more.
Penalty for offences where no separate
punishment has been provided
Sec. 37
Imprisonment for a term which may extend to 1
year, or with fine or with both.
Prohibition of acceptance of FC
Whoever, having been convicted of any offence u/s
Sec. 38
35 or 37, is again convicted of such offence shall not
accept any FC for a period of 5 years from the date
of the subsequent conviction.
Compiled by: CA. Pankaj Garg
Offences by companies (Sec. 39)
• Where an offence has been committed by a company,
every person who, at the time the offence was
committed, was in charge of, and was responsible for the
conduct of the business, shall be deemed to be guilty of
the offence and shall be liable to be proceeded against
and punished accordingly.
• However, such person shall not be liable to any
punishment if he proves that the offence was committed:
(a) without his knowledge, or
(b) he had exercised all due diligence to prevent the
commission of such offence.
Compounding of certain Offences (Sec. 41)
• Any offence punishable under this Act, not being an offence
punishable with imprisonment only, may, before the
institution of any prosecution, be compounded by such
officers and for such sums as notified by the C.G.
• Compounding shall not apply to an offence committed within
a period of 3 years from the date on which a similar offence
committed was compounded under this section.
• Every officer or authority shall exercise the powers to
compound an offence, subject to the direction, control and
supervision of the Central Government.
• If any offence is compounded before the institution of any
prosecution, no prosecution shall be instituted in relation to
such offence, against the offender.
Rule 21 of FCRR, 2011
Application for compounding of an offence may be made to the
Secretary, MHA, New Delhi in electronic form and shall be
accompanied by fee of ₹ 3,000 only.
Misc. (Sec. 42 – Sec. 54)
(1) Power to call of information or
document (Sec. 42)
(2) Investigation into cases under the Act
(Sec. 43)
• Any offence punishable under this Act
may also be investigated into by such
authority as the C.G. may specify in this
behalf.
• The authority so specified shall have all
the powers which an officer-in-charge of
a police station has while making an
investigation into a cognizable offence.
Rule 22 of FCRR, 2011
The CBI or any other Govt. investigating
agency that conducts any investigation
shall furnish reports to the C.G. on a
quarterly basis, indicating the status of each
case, including information regarding the
case number, date of registration, date of
filing charge sheet, court before which it
has been filed, progress of trial, date of
judgment and the conclusion of each case.
(3) Power of C.G. to give directions (Sec. 46)
(4) Delegation of powers (Sec. 47)
(5) Power to make Rules (Sec. 48)
(6) Power to exempt in certain cases (Sec.
50)
(7) Act not to apply to certain Govt.
transactions (Sec. 51)
(8) Application of other laws not barred
(Sec. 52)
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