Centre Notifies Act To Regulate Funds Received As Foreign Contributions [Read Notification]

It amends the Foreign Contribution (Regulation) Act, 2010 to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest.

The Act prohibits public servants from accepting any foreign contributions. This is in addition to the bar placed on election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.

Further, it prohibits the transfer of foreign contributions to any other person be it an individual, association, or a registered company. Thus, sub-granting of foreign funds has been prohibited.

The Act also provides that any person seeking Government approval (mandatory for accepting foreign contributions) must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document. In case of a foreigner, they must provide a copy of the passport or the OCI card.

Explained : Changes Brought To Foreign Contributions Regulation Act

It reduces the cap for utilization of funds for administrative expenses from 50% to 20%.

The Act was cleared by the Parliament on September 22, 2020. Notably, it was passed unopposed in the Rajya Sabha, as the Opposition Members had staged a walk out, in protest to passing of the Farmers' Bills.

To read more about the Act and the debate in Lok Sabha, Click Here.

Click Here To Download Notification

Read Notification