Foreign funds under prior permission category have to be spent within four years, says Centre

All entities that receive foreign funds under the prior permission category of the Foreign Contribution Regulation Act must use them within four years, the Union government said on Monday.

A notice issued by the home ministry said that entities that are not registered with the Centre under Section 11(1) of the Act can receive foreign funds only after obtaining prior permission from the Centre through an application. This permission will only be valid for the specific activities or projects for which it is obtained.

Section 11(1) of the Foreign Contribution Regulation Act requires all persons or organisations with a “definite cultural, economic, educational, religious or social programme” who want to receive foreign funds to register themselves with the Centre. Section 11(2) says that those who are not registered with the Centre can receive foreign funds only after prior permission.

On Monday, the home ministry’s notice said that in the prior permission category, funds from abroad must be used within four years of getting approval. Further, the funds must be received within three years of getting approval.

“Any receipt or utilisation of the foreign contribution beyond the above said time limits shall be a violation of FCRA, 2010,” the Centre said.

In January, the home ministry had warned non-governmental organisations of penal action if they...

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