Fcra license
shyam lal
(Querist) 24 August 2024
This query is : Resolved
What happens to immovable property bought out of FCRA funds when FCRA license gets cancelled.
T. Kalaiselvan, Advocate
(Expert) 24 August 2024
The conditions for cancellation of certificate, as prescribed under section 14 of FCRA, 2010 are ‒
14 (1) The Central Government may, if it is satisfied after making such inquiry as it may deem fit, by an order, cancel the certificate.
14 (3) Any person whose certificate has been cancelled under this section shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation
of such certificate.
The conditions for suspension of certificate, as prescribed
under section 13 of FCRA, 2010 are ‒
13(1) Where the Central Government, for reasons to be recorded in
writing, is satisfied that pending consideration of the question of cancelling the certificate on any of the grounds mentioned in sub-section (1) of Section, 14, it is necessary so to do, it may, by
order in writing, suspend the certificate for such period not exceeding one hundred and eighty days as may be specified in the order.
13(2) Every person whose certificate has been suspended shall ‒
(a) not receive any foreign contribution during the period of
suspension of certificate:
Provided that the Central Government, on an application made by such person, if it considers appropriate, allow receipt of any foreign contribution by such person on such terms and conditions as it may specify;
(b) utilise, in the prescribed manner, the foreign contribution in his custody with the prior approval of the Central Government.
In terms of Rule 14 of the Foreign Contribution (Regulation) rules, 2011, the unspent amount that can be utilised in case of suspension of a certificate of registration may be as under: -
(a) In case the certificate of registration is suspended under
sub-section (1) of section 13 of the Act, up to twenty-five per cent of the unutilised amount may be spent, with the prior approval of the Central Government, for the declared aims and objects for which the foreign contribution was received.
(b) The remaining seventy-five per cent of the unutilised foreign contribution shall be utilised only after revocation of suspension of the certificate of registration.
After the violation committed by an association has been condoned, the association can apply for prior permission (PP) only by submitting an application in form FC-4.
shyam lal
(Querist) 25 August 2024
The MHA has permanently cancelled the Registration /License of the NGO... Unused funds have been ceased.. ..Google Search also does not say any thing about legal owner of immovable property bought out of FCRA after revocation of Registration /License..if there is Any act/clause/section of FCRA please do share
SIVARAMAPRASAD KAPPAGANTU
(Expert) 25 August 2024
Take up the matter with Ministry of Home Affairs with full details and seek their guidance.
shyam lal
(Querist) 25 August 2024
If any one is Fed -up with his life..one should take your advice.. interact With the Home ministry. They start asking non-biological questions. Instead of answering to the pointed query.
T. Kalaiselvan, Advocate
(Expert) 25 August 2024
The latest amendments to the FCRA Rules, introduced in September 2023, emphasize the importance of transparency. NGOs registered under the FCRA Act, are now required to provide detailed information about both movable and immovable assets created using foreign contributions.
Section 13 of the act deals with the suspension of the registration and the other procedures are laid down in section 14 of the act, whereas you wanted to know about the fate of the property subsequent to the cancellation or suspension of the registration.
You have an option to get the suspension revoked, after that you can submit application to retrieve the property that have been suspended along with the suspension of registration or you may make a visit to the concerned department in person and clarify the details in person
SIVARAMAPRASAD KAPPAGANTU
(Expert) 26 August 2024
Your personal feelings notwithstanding,
when an FCRA (Foreign Contribution Regulation Act) license is revoked, the fate of assets purchased with foreign funds can be complex.
The only alternative is contacting MHA and getting the matter resolved.
