The Foreign Contribution (Regulation) Act, 2010
Administered Ministry: Ministry of Home Affairs / Department of Internal Security
Section
Section 39 Offences by companies.
(1) Where an offence under this Act or any rule or order made thereunder has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act or any rule or order made thereunder has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate and includes a firm, society, trade union 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 the firm or a member of the governing body of such society, trade union or other association of individuals.
Provided that nothing contained in this sub-section shall render such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act or any rule or order made thereunder has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means any body corporate and includes a firm, society, trade union 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 the firm or a member of the governing body of such society, trade union or other association of individuals.
Section 40 Bar on prosecution of offences under the Act.
No court shall take cognizance of any offence under this Act, except with the previous sanction of the Central Government or any officer authorised by that Government in this behalf.
Section 41 Composition of certain offences. 1 docs
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Act (whether committed by an individual or association or any officer or employee thereof), not being an offence punishable with imprisonment only, may, before the institution of any prosecution, be compounded by such officers or authorities and for such sums as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(2) Nothing in sub-section (1) shall apply to an offence committed by an individual or association or its officer or other employee within a period of three years from the date on which a similar offence committed by it or him was compounded under this section.
Explanation.—For the purposes of this section, any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence.
(3) Every officer or authority referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government.
(4) Every application for the compounding of an offence shall be made to the officer or authority referred to in sub-section (1) in such form and manner along with such fee as may be prescribed.
(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded.
(6) Every officer or authority referred to in sub-section (1), while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires by an individual or association or its officer or other employee to obtain permission or file or register with, or deliver or send to, the Central Government or any prescribed authority any return, account or other document, may, direct, by order, if he or it thinks fit to do so, any individual or association or its officer or other employee to file or register with, such return, account or other document within such time as may be specified in the order.
(2) Nothing in sub-section (1) shall apply to an offence committed by an individual or association or its officer or other employee within a period of three years from the date on which a similar offence committed by it or him was compounded under this section.
Explanation.—For the purposes of this section, any second or subsequent offence committed after the expiry of a period of three years from the date on which the offence was previously compounded, shall be deemed to be a first offence.
(3) Every officer or authority referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government.
(4) Every application for the compounding of an offence shall be made to the officer or authority referred to in sub-section (1) in such form and manner along with such fee as may be prescribed.
(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded.
(6) Every officer or authority referred to in sub-section (1), while dealing with a proposal for the compounding of an offence for a default in compliance with any provision of this Act which requires by an individual or association or its officer or other employee to obtain permission or file or register with, or deliver or send to, the Central Government or any prescribed authority any return, account or other document, may, direct, by order, if he or it thinks fit to do so, any individual or association or its officer or other employee to file or register with, such return, account or other document within such time as may be specified in the order.
Section 42 Power to call for information or document.
Any inspecting officer referred to in section 23 who is authorised in this behalf by the Central Government may, during the course of any inspection of any account or record maintained by any political party, person, organisation or association in connection with the contravention of any provision of this Act,—
(a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or rule or order made thereunder;
(b) require any person to produce or deliver any document or thing useful or relevant to such inspection;
(c) examine any person acquainted with the facts and circumstances of the case related to the inspection.
(a) call for information from any person for the purpose of satisfying himself whether there has been any contravention of the provisions of this Act or rule or order made thereunder;
(b) require any person to produce or deliver any document or thing useful or relevant to such inspection;
(c) examine any person acquainted with the facts and circumstances of the case related to the inspection.
Section 43 Investigation into cases under the Act.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence punishable 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 officer-in-charge of a police station has while making an investigation into a cognizable offence.
Section 44 Returns by prescribed authority to Central Government.
The prescribed authority shall furnish to the Central Government at such time and in such form and manner such returns and statements as may be prescribed.
Section 45 Protection of action taken in good faith.
No suit or other legal proceedings shall lie against the Central Government or the authority referred to in section 44 or any of its officers in respect of any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or, any rule or order made thereunder.
Section 46 Power of Central Government to give directions.
The Central Government may give such directions as it may deem necessary to any other authority or any person or class of persons regarding the carrying into execution of the provisions of this Act.
Section 47 Delegation of powers.
The Central Government may, by notification, direct that any of its powers or functions under this Act, except power to make rules under section 48, shall, in relation to such matters and subject to such conditions, if any, may be specified in the notification, be exercised or discharged also by such authority as may be specified.
Section 48 Power to make rules. 2 docs
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the value of the article which may be specified under sub-clause (i) of clause (h) of sub-section (1) of section 2;
(b) the authority which may be specified under clause (p) of sub-section (1) of section 2;
(c) acceptance or retention of gift or presentation under clause (d) of section 4;
(d) guidelines specifying the ground or grounds on which an organisation may be specified as an organisation of political nature under sub-section (1) of section 5;
(e) the activities or business which shall be construed as speculative business under the proviso to clause (a) of sub-section (1) of section 8;
(f) the elements and the manner in which the administrative expenses shall be calculated under sub-section (2) of section 8;
(g) the time within which and the manner in which any person or class of persons or an association may be required to furnish intimation regarding the amount of foreign contribution received under clause (c) of section 9;
(h) the time within which and the manner in which any person or class of persons may be required to furnish intimation regarding foreign hospitality under clause (e) of section 9;
(i) the manner in which the copy of the order of the Central Government shall be served upon any person under section 10;
(j) the form and manner in which the application for grant of certificate of registration or giving of prior permission under sub-section (1) of section 12;
(k) the fee to be accompanied by the application under sub-section (1) of section 12;
(l) the terms and conditions for granting a certificate or giving prior permission under clause (g) of sub-section (4) of section 12;
(m) the manner of utilising the foreign contribution under clause (b) of sub-section (2) of section 13;
(n) the authority with whom the foreign contribution to be vested under sub-section (1) of section 15;
(o) the period within which and the manner in which the foreign contribution shall be managed under sub-section (2) of section 15;
(p) the form and manner in which the application for a renewal of certificate of registration shall be made under sub-section (2) of section 16;
(q) the fee to be accompanied by the application for renewal of certificate under sub-section (2) of section 16;
(r) the prescribed amount of foreign remittance, the form and manner in which the foreign remittance received by every bank or authorised person in foreign exchange shall be reported under sub-section (2) of section 17;
(s) the time within which and the manner in which the person who has been granted certificate of registration or given prior permission under this Act shall give intimation under section 18;
(t) the form and manner in which account of any foreign contribution and the manner in which such contribution has been utilised shall be maintained under section 19;
(u) the time within which and the manner in which a candidate for election shall give intimation under section 21;
(v) the manner and procedure to be followed in disposing of the assets under section 22;
(w) the limits subject to which any confiscation may be adjudged under clause (b) of sub-section (1) of section 29;
(x) the fee to be accompanied along with every application for revision under sub-section (5) of section 32;
(y) the form and manner for making of an application for compounding of an offence and the fee therefor under sub-section (4) of section 41;
(z) the form and manner in which and the time within which returns and statements to be furnished by the prescribed authority under section 44;
(za) any other matter which is required to be, or may be, prescribed.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the value of the article which may be specified under sub-clause (i) of clause (h) of sub-section (1) of section 2;
(b) the authority which may be specified under clause (p) of sub-section (1) of section 2;
(c) acceptance or retention of gift or presentation under clause (d) of section 4;
(d) guidelines specifying the ground or grounds on which an organisation may be specified as an organisation of political nature under sub-section (1) of section 5;
(e) the activities or business which shall be construed as speculative business under the proviso to clause (a) of sub-section (1) of section 8;
(f) the elements and the manner in which the administrative expenses shall be calculated under sub-section (2) of section 8;
(g) the time within which and the manner in which any person or class of persons or an association may be required to furnish intimation regarding the amount of foreign contribution received under clause (c) of section 9;
(h) the time within which and the manner in which any person or class of persons may be required to furnish intimation regarding foreign hospitality under clause (e) of section 9;
(i) the manner in which the copy of the order of the Central Government shall be served upon any person under section 10;
(j) the form and manner in which the application for grant of certificate of registration or giving of prior permission under sub-section (1) of section 12;
(k) the fee to be accompanied by the application under sub-section (1) of section 12;
(l) the terms and conditions for granting a certificate or giving prior permission under clause (g) of sub-section (4) of section 12;
(m) the manner of utilising the foreign contribution under clause (b) of sub-section (2) of section 13;
(n) the authority with whom the foreign contribution to be vested under sub-section (1) of section 15;
(o) the period within which and the manner in which the foreign contribution shall be managed under sub-section (2) of section 15;
(p) the form and manner in which the application for a renewal of certificate of registration shall be made under sub-section (2) of section 16;
(q) the fee to be accompanied by the application for renewal of certificate under sub-section (2) of section 16;
(r) the prescribed amount of foreign remittance, the form and manner in which the foreign remittance received by every bank or authorised person in foreign exchange shall be reported under sub-section (2) of section 17;
(s) the time within which and the manner in which the person who has been granted certificate of registration or given prior permission under this Act shall give intimation under section 18;
(t) the form and manner in which account of any foreign contribution and the manner in which such contribution has been utilised shall be maintained under section 19;
(u) the time within which and the manner in which a candidate for election shall give intimation under section 21;
(v) the manner and procedure to be followed in disposing of the assets under section 22;
(w) the limits subject to which any confiscation may be adjudged under clause (b) of sub-section (1) of section 29;
(x) the fee to be accompanied along with every application for revision under sub-section (5) of section 32;
(y) the form and manner for making of an application for compounding of an offence and the fee therefor under sub-section (4) of section 41;
(z) the form and manner in which and the time within which returns and statements to be furnished by the prescribed authority under section 44;
(za) any other matter which is required to be, or may be, prescribed.
Section 49 Orders and rules to be laid before Parliament.
Every order made under section 5 and every rule made by the Central Government under this Act 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 thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry 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 that the order or rule should not be made, 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, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order or rule.
Section 50 Power to exempt in certain cases.
If the Central Government is of opinion that it is necessary or expedient in the interests of the general public so to do, it may, by order and subject to such conditions as may be specified in the order, exempt any person or association or organisation (not being a political party), or any individual (not being a candidate for election) from the operation of all or any of the provisions of this Act and may, as often as may be necessary, revoke or modify such order.
Section 51 Act not to apply to certain Government transactions.
Nothing contained in this Act shall apply to any transaction between the Government of India and the Government of any foreign country or territory.
Section 52 Application of other laws not barred.
The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
Section 53 Power to remove difficulties.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Section 54 Repeal and saving.
(1) The Foreign Contribution (Regulation) Act, 1976 (49 of 1976) (hereafter referred to as the repealed Act) is hereby repealed.
(2) Notwithstanding such repeal,—
(a) anything done or any action taken or purported to have been done or taken under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;
(b) any organisation of a political nature, not being a political party, to whom the prior permission was granted under section 5 of the repealed Act, shall continue to be the organisation of a political nature, not being a political party, under clause (f) of sub-section (1) of section 3 of this Act, till such permission is withdrawn by the Central Government;
(c) permission to accept foreign hospitality granted under section 9 of the repealed Act shall be deemed to be the permission granted under section 6 of this Act until such permission is withdrawn by the Central Government;
(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 association prohibited from accepting any foreign contribution under section 9 of this Act;
(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 withdrawn by the Central Government;
(f) any order issued under section 12 of the repealed Act shall be deemed to be an order issued under section 10 of this Act;
(g) any order issued under section 31 of the repealed Act exempting any association or any individual shall be deemed to be an order under section 50 of this Act till such order is varied or revoked.
(3) Save as provided in sub-section (2), mention of particular matters in that sub-section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal.
(2) Notwithstanding such repeal,—
(a) anything done or any action taken or purported to have been done or taken under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;
(b) any organisation of a political nature, not being a political party, to whom the prior permission was granted under section 5 of the repealed Act, shall continue to be the organisation of a political nature, not being a political party, under clause (f) of sub-section (1) of section 3 of this Act, till such permission is withdrawn by the Central Government;
(c) permission to accept foreign hospitality granted under section 9 of the repealed Act shall be deemed to be the permission granted under section 6 of this Act until such permission is withdrawn by the Central Government;
(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 association prohibited from accepting any foreign contribution under section 9 of this Act;
(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 withdrawn by the Central Government;
(f) any order issued under section 12 of the repealed Act shall be deemed to be an order issued under section 10 of this Act;
(g) any order issued under section 31 of the repealed Act exempting any association or any individual shall be deemed to be an order under section 50 of this Act till such order is varied or revoked.
(3) Save as provided in sub-section (2), mention of particular matters in that sub-section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal.