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An association or an organization can receive foreign contributions even without registration with prior permission from the FCRA department. Foreign funds and materials can only be received under two circumstances-
The expression of prior permission appears in Sections 11(2) and 11(3). The relevant extract of Section 11(2) and 11(3 )is reproduced as under :
(2) Every person referred to in sub-section (1) may, if it is not registered with the Govt under sub-section, accept any foreign contribution only after obtaining the prior permission of the Central Government and such prior permission shall be valid for the specific purpose for which it is obtained and from the specific source:
Provided that if the person referred to in sub-section (1) and (2) has been found guilty of a violation of any of the provisions of this Act or the Foreign Contribution (Regulation) Act, 1976, the unutilized or unreceived amount of foreign contribution shall not be utilized or received, as the case may be, without the prior approval of the Central Government.
(3) Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, specify—
(i) Person or class of persons who shall obtain its prior permission before accepting the foreign contribution; or
(ii) Area or areas in which the foreign contribution shall be accepted and utilized with the prior permission of the Central Government; or
(iii) The Purpose or purposes for which the foreign contribution shall be utilized with the prior permission of the Central Government; or
(iv) Source or sources from which the foreign contribution shall be accepted with the prior permission of the Central Government.
The Organisation is required to apply in Form FC-4 for prior permission to the FCRA department along with the following documents-
Foreign Contribution (Regulation) Act, 2010 has clause in Form FC-4 requiring the insertion of a certificate from a competent authority.
This certificate can be given by any one of the following :
(1) Collector of District
(2) Department of the Statement Government
(3) Ministry or Department of the Government of India
In this certificate the competent authority certifies the address and the field of activities in which the organisation is working.
It also states that there are no adverse antecedents of the organisation, the proposed activities will be beneficial to the people living in that area and the detail of prior permission if taken earlier.
The FCRA department may ask the intelligence bureau for a report. Some authorities from the intelligence bureau may visit the office and the project area of the organisation and inspect the books of account and other records available.
On the basis of the reports submitted by the intelligence bureau the FCRA department decides whether to accept or reject the application.
The FCRA department issues a registration certificate and provides a permanent registration number. This registration number is required to be quoted in all future correspondences and filling of returns and forms.
After making inquiry, the Central Government may grant him prior permission, ordinarily within ninety days from the date of receipt of application.
In case the Central Government does not grant, within the said period of ninety days, prior permission, it shall communicate the reasons there for to the applicant.
(2) Any organisation referred to in clause (f) of sub-section (1) of section 3, or any person or association referred to in section 6 or section 9, aggrieved by an order made in pursuance of section 5 or by an order of the Central Government refusing to give permission under this Act, or by any order made by the Central Government under sub-section (2) or sub-section (4) of section 12, or sub-section (1) of section 14, as the case may be,
Govt may within 60 days from the date of such order, 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.
(3) Every appeal preferred under this section shall be deemed to be an appeal from an original decree and the provisions of Order XLI of the First Schedule to the Code of Civil Procedure, 1908, shall, as far as may be, apply thereto as they apply to an appeal from an original decree.
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