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Core Purpose

The Central Government, through the Ministry of Home Affairs, amends the penalties and designates authorities for specific offences under sections 35 and 37 of the Foreign Contribution (Regulation) Act, 2010, by substituting entries in notification S.O. 3025(E) dated 1st July, 2022.

Detailed Summary

The Ministry of Home Affairs, via notification S.O. 3287(E) dated 22nd June, 2026, exercised powers under sub-section (1) of section 41 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), to further amend the previous notification S.O. 3025(E) dated 1st July, 2022. The amendments substitute existing entries in the Table concerning offences and their corresponding penalties and designating authorities. For offences punishable under section 37, new penalties are prescribed: for defraying foreign contribution beyond twenty percent for administrative expenses (contravention of section 8), the penalty is one lakh rupees or five percent of the excess contribution, whichever is higher; for utilisation in speculative activities (contravention of section 8(1) read with rule 4 of the Foreign Contribution (Regulation) Rules, 2011), it's thirty percent of the invested amount or one lakh rupees (whichever is higher) plus one hundred percent of returns; and for utilisation for purposes other than received (contravention of section 8(1)(a)), it's thirty percent of the misused amount or one lakh rupees, whichever is higher. For offences punishable under section 35, new penalties include: for accepting or utilising foreign contribution in contravention of section 11, it's one lakh rupees or thirty percent of the foreign contribution received or utilised, whichever is higher; and for violation of section 11 read with rule 9(1B) of the Foreign Contribution (Regulation) Rules, 2011 by utilising foreign contribution without registration in a State/UT, it's thirty percent of the amount so utilised. In all these cases, the designated authority is the Director or Deputy Secretary in-charge of the section administering the Act. This notification explicitly states it will not apply to cases disposed of before its publication and such cases shall not be reopened. The principal notification S.O. 3025(E) was previously amended by S.O. 778(E) dated 20th February, 2023.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-22062026-273722 EXTRAORDINARY PART II—Section 3—Sub-section (ii) PUBLISHED BY AUTHORITY No. 3158] NEW DELHI, MONDAY, JUNE 22, 2026/ASHADHA 1, 1948 MINISTRY OF HOME AFFAIRS NOTIFICATION New Delhi, the 22nd June, 2026 S.O. 3287(E).— In exercise of the powers conferred by sub-section (1) of section 41 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Home Affairs, vide number S.O. 3025(E), dated the 1st July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), namely:- In the said notification, in the Table,— (a) for serial number 3 and the entries relating thereto, the following serial number and entries shall be substituted, namely:— +-----+---------------------------------------------+------------------------------+----------------------------------------+ | (1) | (2) | (3) | (4) | +=====+=============================================+==============================+========================================+ | 3. | (a) Offence punishable under section | One lakh rupees or | Director, or as the case may be, | | | 37 for defraying of foreign | five per cent. of such | the Deputy Secretary in-charge | | | contribution beyond twenty per cent. | foreign contribution | of the section responsible for the | | | of the contribution received for | so defrayed beyond | administration of the Act. | | | administrative expenses in | the permissible limit, | | | | contravention of section 8 of the Act. | whichever is higher. | | | | (b) Offence punishable under section | Thirty per cent. of | Director, or as the case may be, | | | 37 for utilisation of foreign | the amount invested | the Deputy Secretary in-charge | | | contribution in speculative activities | in speculative | of the section responsible for the | | | in contravention of section 8(1) of the | activity or rupees | administration of the Act | | | Act read with rule 4 of the Foreign | one lakh, whichever | | | | Contribution (Regulation) Rules, 2011. | is higher; and one | | | | | hundred per cent. of | | | | | the returns earned | | | | | therefrom. | | | | (c) Offence punishable under section | Thirty per cent. of | Director, or as the case may be, | | | 37 for utilisation of foreign | the amount so | the Deputy Secretary in-charge | | | contribution for purposes other than | utilised for purposes | of the section responsible for the | | | those for which it was received in | other than the | administration of the Act."; | | | contravention of clause (a) of sub- | purpose for which | | | | section (1) of section 8 of the Act. | such foreign | | | | | contribution was | | | | | received or rupees | | | | | one lakh, whichever | | | | | is higher. | | +-----+---------------------------------------------+------------------------------+----------------------------------------+ (b) for serial number 4 and the entries relating thereto, the following serial number and entries shall be substituted, namely:— +-----+---------------------------------------------+------------------------------+----------------------------------------+ | (1) | (2) | (3) | (4) | +=====+=============================================+==============================+========================================+ | 4. | (a) Offence punishable under section | One lakh rupees or | Director, or as the case may be, | | | 35 for accepting [or utilising] foreign | thirty per cent. of | the Deputy Secretary in-charge | | | contribution in contravention of | the foreign | of the section responsible for the | | | section 11 of the Act. | contribution | administration of the Act. | | | | received [or utilised, | | | | | as the case may be], | | | | | whichever is higher. | | | | (b) Offence punishable under section | Thirty per cent. of | Director, or as the case may be, | | | 35 for violation of section 11 read | the amount so | the Deputy Secretary in-charge | | | with rule 9(1B) of the Foreign | utilised for such | of the section responsible for the | | | Contribution (Regulation) Rules, 2011 | purpose or in such | administration of the Act.". | | | by utilisation of foreign contribution | State or Union | | | | | territory for which | | | | | registration has not | | | | | been granted. | | +-----+---------------------------------------------+------------------------------+----------------------------------------+ 2. This notification shall not apply to the cases disposed of before the publication of this notification and no case so disposed of shall be reopened. [F. No. II/21022/23(12)/2020-FCRA-II] GAYA PRASAD, Jt. Secy. Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (ii), vide notification number S.O. 3025(E), dated the 1st July, 2022 and was subsequently amended vide notification number S.O. 778(E), dated the 20th February, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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