FCRA accounts and utilization accounts of associations
Regarding maintaining of FCRA accounts and utilization accounts of associations whose FCRA Registration Certificate is not valid — regarding.
The Ministry of Home Affairs (MHA) administers the Foreign Contribution (Regulation) Act. 2010 (FCRA. 2010) which regulates the receipt of .foreign contribution by NGOs Voluntary organizations associations and its utilization for bonafide activities as per law.
- The FCRA. 2010 provides that foreign contribution shall be utilized exclusively for the purposes for which it has been received. Therefore, each FORA registered NGO/Association has to utilize such foreign contribution (FC) for the purpose for which it has been registered or granted Prior Permission under the FCRA. 2010. Further, as per Section 11 of the FCRA. 2010. no person shall accept FC unless such person obtains a certificate of registration or prior permission from the Central Government. Also. Section 16 of the Act stipulates that every person who has been granted a certificate shall have such certificate renewed within six months before expiry of the period of such certificate. Accordingly. the Foreign Contribution (Regulation) Rules. 2011 prescribes that no person whose certificate of registration has ceased to exist shall either receive or utilize foreign contribution.
- However, instances have come to notice of this Ministry where credit or debit of FC has been noticed into the accounts of NGOs: associations who have not been granted registration/ prior permission/ renewal under the FCRA. 2010 or such NGOslassociations whose registration has ceased on expiry of validity period or whose registration has been cancelled.
- It may be noted that any receipt or utilisation of FC without valid FCRA registration is violation of provisions of FCRA. 2010. Accordingly, any transaction in FCRA accounts FCRA utilisation accounts of the NGO/Association whose FCRA certificate has been cancelled or ceased or validity expired would amount to violation of FCRA. 2010 and is liable for penal action. Status of validity of the FCRA registration certificate may be checked on FCRA Web Portal https://fcraonline.nic.in.
In view of above. in exercise of the powers conferred under section 46 of the FCRA. 2010 all concerned are directed to comply with provisions of FCRA. 2010 and Rules thereunder including above mentioned provisions.
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