Discuss the salient features of Foreign Contribution (Regulation) Amendment Act, 2020.
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2023
Discuss the salient features of Foreign Contribution (Regulation) Amendment Act, 2020.
Answer & Explanation:
The salient features of the Foreign Contribution (Regulation) Amendment Act, 2020 inter alia, are as under: Amended Section 3(1)(c) of the Act to include "public servant" also within its ambit, to provide that no foreign contribution shall be accepted by any public servant; Amended Section 7 of the Act to prohibit any transfer of foreign contribution to any person; Amended section 8(1) of the Act to reduce the limit for defraying administrative expenses from existing "fifty per cent." to "twenty per cent." Insertion of new sub-section (1A) after sub-section (1) of section 12, sub-section (1A) provides that every person who makes an application under sub-section (1) shall be required to open "FCRA Account" in the manner specified in section 17 and mention details of such account in his application.' Insertion of a new Section 12A empowering the Central Government to require Aadhaar number, etc., as identification document; Insertion of a new Section 14A enabling the Central Government to permit any person to surrender the certificate granted under the Act. Amended Section 17 of the Act to provide that every person who has been granted certificate or prior permission under section 12 shall receive foreign contribution only in an account designated as "FCRA Account" which shall be opened by him in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify and for other consequential matters relating thereto.
Topics: Foreign Contribution (Regulation) Act, 2010
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