Quantum of penalty for acceptance of foreign contribution in contravention of FCRA increased
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- Last Updated on 4 July, 2022
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Notification No. S.O. 3025(E), Dated 01.07.2022
The Government has increased the amount of penalty for accepting the foreign contribution without obtaining the certificate of registration from the Central Government as mandated under section 11 of the Act. Accordingly, the amount of penalty is Rs. 1,00,000 or 30% of foreign contribution received whichever is higher. Earlier, the amount of penalty prescribed for accepting a foreign contribution in contravention of section 11 of the Act was Rs. 1,00,000 or 10% of the foreign contribution received, whichever is higher.
Further, the notification also provides for the new penal provisions for the contravention of various other sections as stated below –
(a) A penalty of 5% of such foreign contribution received in a financial year has been prescribed for failure to intimate about the receipt of foreign contribution within the prescribed time limit in respect of offence punishable under sections 3, 11, 35 of the Act read with rule 6 of the Foreign Contribution (Regulation) Rules, 2011
(b) A penalty of Rs. 10,000 per utilisation account for failure to intimate within the prescribed time has been prescribed for failure to intimate about the opening of account or accounts within the prescribed time in respect of offence punishable under sections 37, 17, 19 of the Act read with rules 9(1) & 9 (2) of the Foreign Contribution (Regulation) Rules, 2011
(c) A penalty of Rs. 10,000 for each violation of failure to intimate within the prescribed time has been prescribed for failure to intimate about details within the prescribed time in respect of offence punishable under sections 37, 11, and 17 of 5the Act read with rule 17A of the Foreign Contribution (Regulation) Rules, 2011
(d) A penalty of Rs. 10,000 for each violation has been prescribed for failure to place on website as prescribed in clause (a) of rule 13 within the prescribed time in respect of offence punishable under sections 37 and 19 of the Act read with rule 13 of the Foreign Contribution (Regulation) Rules, 2011
It is to be noted that the amount of penalty prescribed shall not be more than the value of foreign contribution received.
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