Foreign contribution in India is regulated and monitored by the Government of India under the provisions of the Foreign Contribution Regulation Act, 2010 (the "FCRA Act 2010"). The FCRA Act 2010 provides for the manner in which foreign contribution or foreign hospitality are permitted to be accepted and utilised by individuals, associations and companies in India. To prevent misuse of funds, strengthen national security and compliance mechanism, enhance transparency and accountability in the hands of the recipient of the foreign contribution, the Government felt the need to make certain amends to the FCRA Act 2010. The Government of India thereafter introduced the Foreign Contribution (Regulation) Amendment Bill, 2020 that ("FCRA Bill") which received the assent of the Rajya Sabha on September 21, 2020 and of the Lok Sabha on September 23, 2020 raising concerns among the non-government organisations receiving foreign contribution in India. This FCRA Bill thereafter received the assent of the Presidents on September 28, 2020 notifying the effectiveness of the Foreign Contribution Regulation Amendment Act, 2020 ("FCRA Amendment Act") from September 29, 2020.
We set out below a tabular representation of the key highlights of the changes made pursuant to the FCRA Amendment Act:
Please click here to view the table.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.