PRIOR PERMISSION UNDER FCRA

Understanding ‘prior permission’ under FCRA

An association or an organisation can receive foreign contribution even without registration with prior permission from the FCRA department. Foreign funds and materials can only be received under two circumstances-

i. the organisation has obtained permanent registration from the FCRA department.
ii. the association or the organisation obtains prior permission from the FCRA department on case to case basis.

Generally prior permission will be required under the following circumstances:

i. the organisation does not have permanent FCRA registration number.
ii. the FCRA registration number has been cancelled by the Government.
iii. the association is instructed by the Central Government to take prior permission where power have been provided to prohibit any organisation from receiving foreign funds.
iv. the FCRA number is suspended due to violation of the provisions and conditions specified under the FCRA.
v. the organisation is of political nature, not being a political party.
vi. any person resident in India or any citizen of India resident outside India, receiving foreign funds on behalf of an organisation of political nature.

The relevant statutory provisions: The expression of prior permission appears in Section 11(2) and 11(3). The relevant extract of Section 11(2) and 11(3 )is reproduced as under :

(2) Every person referred to in sub-section (1) may, if it is not registered with the Central Government under that sub-section, accept any foreign contribution only after obtaining the prior permission of the Central Government and such prior permission shall be valid for the specific purpose for which it is obtained and from the specific source:

Provided that if the person referred to in sub-sections (1) and (2) has been found guilty of violation of any of the provisions of this Act or the Foreign Contribution (Regulation) Act, 1976, the unutilized or unreceived amount of foreign contribution shall not be utilized or received, as the case may be, without the prior approval of the Central Government.

(3) Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, specify—
(i) the person or class of persons who shall obtain its prior permission before accepting the foreign contribution; or
(ii) the area or areas in which the foreign contribution shall be accepted and utilized with the prior permission of the Central Government; or
(iii) the purpose or purposes for which the foreign contribution shall be utilized with the prior permission of the Central Government; or
(iv) the source or sources from which the foreign contribution shall be accepted with the prior permission of the Central Government.