cs executive Foreign Contribution act notes fcra

Posted on 04-05-2016        By ADMIN

cs executive Foreign Contribution act notes A/1 “ Background ” It is quite possible that politicians, political parties, associations & other persons in India, may accept “Foreign Contribution” and may enjoy “Foreign Hospitality” from foreign countries, bodies etc. This could be with the intention - to obtain unfair benefit (or ) advantages in India ( by those Foreign Countries (or) Bodies etc. ). Obviously, the interest of the Nation may be harmed ( in such circumstances ). Such unregulated receipts of funds & hospitality was a cause for concern - to our Indian Government. A/2 “ Enactment ” Therefore, in order to regulate the acceptance and utilisation of “Foreign contribution ” (or ) “Foreign Hospitality” - by certain Persons ( or ) Associations - the Government of India enacted the FC(R)A, 1976. The Act came into force with effect from August 5, 1976. With a view to removing certain inadequacies and practical difficulties in the administration of this Act, the Government introduced the Foreign Contribution ( Regulation ) Amendment Act, 1985. Section 3 provides that the provisions of this Act are in addition to, and not in derogation of, any other law for the time being in force in various parts in India. A/3 “ Purpose ” As per the preamble to the FC(R)A, 1976 - the purpose (or) object of the Act is :- - “ to regulate the acceptance & utilisation of foreign contribution (or) foreign hospitality by certain Persons (or) Associations with a view to ensuring - Parliamentary Institutions, Political Associations, and Academic & other Voluntary organisations, as well as Individuals - working in important areas of National Life - may function in a manner - consistent with the values of a Sovereign Democratic Republi A/4 “ Other Points - for FC(R)A, 1976 ” The FC(R)A, 1976 prescribes - various restrictions on accepting foreign contribution. The FC(R)A, 1976 extends - to the WHOLE of India. It also applies to - ‘Citizens of India’ OUTSIDE India, Associates, Branches (or) Subsidiaries OUTSIDE India ( of Companies or Bodies Corporate registered (or) incorporated IN India ) EXCEPTION : However, the provisions of the Act are NOT applicable - to ANY transaction between the Government of India and the Government of ANY Foreign Country (or) Territory ( Sec. 32

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