New Delhi: Expanding the scope of what constitutes violation of Foreign Contribution (Regulation) Act, 2010, the Centre Monday announced that all entities receiving foreign funding must now utilise the funds within four years of obtaining them. The notification issued by the Ministry of Home Affairs also said that the validity period of receiving foreign contribution will be three years from the date of approval of the application for prior permission. It said that anyone registered under the FCRA can accept any foreign contribution only after obtaining the prior permission by making an application.
“The validity period for utilising the said foreign contribution shall be four years from the date of approval of the application for prior permission,” the notification said. With respect to applications which have already been approved, this time limit shall be “reckoned from the date of issue of this order instead of the date of approval of the application for prior permission,” the notification said. “Any receipt or utilisation of the foreign contribution beyond the above said time limits shall be a violation of FCRA, 2010, and in case of any violation, necessary punitive action shall be taken,” the notification read.
In the earlier policy, the spending window remained open and valid till the entire fund was utilised. However, according to the notification, the competent authority in the Ministry of Home Affairs “may allow for extension in the validity period for an association or organisation on case-to-case basis, based on the merits of the case”. It does not mention what criteria will be considered to waive off these conditions.
Under FCRA, 2010, every person with a definite cultural, economic, educational, religious or social programme may—if it is not registered with the central government under Section 11(1)—accept any foreign contribution, only after obtaining the prior permission of the Ministry of Home affairs by making an application in the prescribed format. Such prior permission will be valid for the specific activities or projects for which it is obtained and from the specific source. (Edited by Mannat Chugh) Also Read: Slew of amendments to National Highways Act on cards as Centre looks to acquire land faster, cut costs var ytflag = 0;var myListener = function() {document.
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Entities receiving foreign funds must utilise them within 4 years, says home ministry

Expanding the scope of violation of FCRA, 2010, Centre has said that validity period of receiving foreign funds will be 3 yrs from the date of approval of application for prior permission.