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A PRESENTATION PRESENTATION ON BY Shri D.S. Mishra, Shri D.S. Mishra, Joint Joint Secretary (F), MHA Secretary (F), MHA IN PRAVASI BHARATIYA DIVAS, PRAVASI BHARATIYA DIVAS, HYDERABAD HYDERABAD 09 09 th th JANUARY 2006 JANUARY 2006
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Page 1: return of the prodigal son

A

PRESENTATION PRESENTATION ON

BY

Shri D.S. Mishra, Shri D.S. Mishra, Joint Secretary (F), MHAJoint Secretary (F), MHAIN

PRAVASI BHARATIYA DIVAS,PRAVASI BHARATIYA DIVAS,HYDERABADHYDERABAD

0909thth JANUARY 2006 JANUARY 2006

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Foreign Contribution Foreign Contribution (Regulation) Act, 1976(Regulation) Act, 1976

• Is an act to regulate the Is an act to regulate the acceptance and utilization acceptance and utilization of foreign contribution or of foreign contribution or foreign hospitality by foreign hospitality by certain persons or certain persons or associations.associations.

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FEWFEWFACTSFACTS

ANDANDFIGURESFIGURES

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Receipt of Foreign Contribution Receipt of Foreign Contribution

YearYearAmount Amount

Rs/croresRs/crores

% Increase % Increase over previous over previous

YearYear

2001-022001-02 4871.94871.9 7.427.42

2002-032002-03 5046.55046.5 3.583.58

2003-042003-04 5105.55105.5 1.171.17

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Amount wise break-up of Amount wise break-up of Foreign Contribution received Foreign Contribution received

by reporting Associations by reporting Associations

YearYearBelow Below Rs.1 cr.Rs.1 cr.

Between Between Rs.1-5 cr.Rs.1-5 cr.

BetweenBetween Rs.5-10 Rs.5-10

cr.cr.

AboveAbove Rs.10 cr.Rs.10 cr.

2001-022001-02 1476114761 721721 7777 5959

2002-032002-03 1565015650 798798 7676 6666

2003-042003-04 1618716187 818818 8383 5757

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Top Donor CountriesTop Donor CountriesForeign Contribution (Rs. in crores)Foreign Contribution (Rs. in crores)

CountriesCountries 2001-022001-02 2002-032002-03 2003-042003-04

USAUSA 1658.291658.29 1679.841679.84 1584.261584.26

GermanyGermany 702.33702.33 715.04715.04 757.13757.13

UKUK 679.29679.29 685.38685.38 676.14676.14

ItalyItaly 304.55304.55 315.82315.82 350.01350.01

NetherlandsNetherlands 237.37237.37 261.88261.88 304.04304.04

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Top DonorsTop DonorsForeign Contribution (Rs. in crores)Foreign Contribution (Rs. in crores)

DonorsDonors 2001-022001-02 2002-032002-03 2003-042003-04

Foundation Vicent E Foundation Vicent E Ferrer, SpainFerrer, Spain

63.0663.06 79.1679.16 135.15135.15

World Vision World Vision International, USAInternational, USA

78.3378.33 90.2490.24 94.3694.36

Christian Children Fund, Christian Children Fund, USAUSA

44.2744.27 75.1575.15 73.5973.59

Foster Parents Plan Foster Parents Plan International, USAInternational, USA

72.3772.37 53.7353.73 57.5657.56

Missio, GermanyMissio, Germany 40.5740.57 40.0340.03 47.7847.78

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Top Recipient States/Union Top Recipient States/Union TerrotoriesTerrotories

Foreign Contribution (Rs. in crores)Foreign Contribution (Rs. in crores)

States/UTsStates/UTs 2001-022001-02 2002-032002-03 2003-042003-04

DelhiDelhi 794.42794.42 880.77880.77 857.12857.12

Tamil NaduTamil Nadu 695.49695.49 774.99774.99 800.22800.22

Andhra PradeshAndhra Pradesh 559.56559.56 629.76629.76 684.20684.20

KarnatakaKarnataka 504.98504.98 489.12489.12 528.56528.56

MaharashtraMaharashtra 464.35464.35 505.13505.13 480.61480.61

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Top Recipient DistrictsTop Recipient Districts

Foreign Contribution (Rs. in crores)Foreign Contribution (Rs. in crores)

DistrictsDistricts 2001-022001-02 2002-032002-03 2003-042003-04

BangaloreBangalore 362.19362.19 357.66357.66 357.66357.66

ChennaiChennai 311.55311.55 363.45363.45 384.53384.53

MumbaiMumbai 298.28298.28 283.59283.59 299.63299.63

AnanthapurAnanthapur 115.42115.42 168.95168.95 209.16209.16

KolkataKolkata 168.38168.38 181.44181.44 179.86179.86

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Top PurposesTop PurposesForeign Contribution (Rs. in crores)Foreign Contribution (Rs. in crores)

PurposesPurposes 2001-022001-02 2002-032002-03 2003-042003-04

Establishment ExpensesEstablishment Expenses 859.00859.00 673.77673.77 639.31639.31

Rural DevelopmentRural Development 464.61464.61 486.50486.50 494.64494.64

Construction of Construction of School/CollegeSchool/College

242.24242.24 275.74275.74 221.63221.63

Welfare of ChildrenWelfare of Children 187.30187.30 176.13176.13 221.38221.38

Awareness about AIDS / Awareness about AIDS / Treatment of AIDS Treatment of AIDS patientspatients

25.8625.86 49.0849.08 181.58181.58

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TrendsTrends

YearYear

No. of Registered No. of Registered Associations (as on Associations (as on

3131stst March of March of Financial Year)Financial Year)

No. of Reporting No. of Reporting AssociationsAssociations

Amount of Foreign Amount of Foreign Contribution Contribution

(Rs. in crores)(Rs. in crores)

1994-19951994-1995 15,72315,723 11,42211,422 1,892.431,892.43

1995-19961995-1996 16,74016,740 10,95010,950 2,168.852,168.85

1996-19971996-1997 17,72317,723 12,13612,136 2,571.692,571.69

1997-19981997-1998 18,48918,489 12,19812,198 2,864.512,864.51

1998-19991998-1999 19,83419,834 13,77513,775 3,402.903,402.90

1999-20001999-2000 21,24421,244 13,98613,986 3,924.633,924.63

2000-20012000-2001 22,92422,924 14,59814,598 4,535.234,535.23

2001-20022001-2002 24,56324,563 15,59815,598 4,870.524,870.52

2002-20032002-2003 26,40426,404 16,59016,590 5,046.515,046.51

2003-20042003-2004 28,35128,351 17,14517,145 5,105.465,105.46

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Purpose of FCRAPurpose of FCRA

• Regulating foreign contribution Regulating foreign contribution meant for influencing elections or meant for influencing elections or individuals or associations working individuals or associations working in important areas of national life.in important areas of national life.

• Regulating receipt of foreign Regulating receipt of foreign contribution for genuine purposes.contribution for genuine purposes.

• Ensuring that foreign contribution Ensuring that foreign contribution is not used for activities is not used for activities detrimental to national interest.detrimental to national interest.

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Foreign ContributionForeign Contribution

• Means the donation, delivery or transfer, Means the donation, delivery or transfer, made by any foreign source of any;made by any foreign source of any;

• article, not given to a person as a gift, for article, not given to a person as a gift, for personal use, if the market value in India of personal use, if the market value in India of such article exceeds one thousand rupees;such article exceeds one thousand rupees;

• currency, whether Indian or foreign;currency, whether Indian or foreign;• foreign security.foreign security.

NOTE : Contributions made by an NRI, from NOTE : Contributions made by an NRI, from his/her personal savings, through the normal his/her personal savings, through the normal banking channels, is not treated as foreign banking channels, is not treated as foreign contribution.contribution.

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Foreign SourceForeign Source• Government of foreign country or any agency of such Government of foreign country or any agency of such

Government.Government.• International agencies, not being ofInternational agencies, not being of

• United Nations or its specialized agenciesUnited Nations or its specialized agencies• World BankWorld Bank• International Monetary FundInternational Monetary Fund• Such other agencies as so notified by the Central Such other agencies as so notified by the Central

Government.Government.• Foreign company or Corporation incorporated in foreign Foreign company or Corporation incorporated in foreign

countrycountry• Trade Union in a foreign country Trade Union in a foreign country • Foreign Trust or Foundation or Society or Club formed or Foreign Trust or Foundation or Society or Club formed or

registered outside Indiaregistered outside India• Company where more than half of shareholding held by foreign Company where more than half of shareholding held by foreign

Govt., foreign citizens, foreign corporationsGovt., foreign citizens, foreign corporations• Citizens of foreign countriesCitizens of foreign countries

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Who cannot accept Foreign Who cannot accept Foreign Contribution?Contribution?

• Candidate for elections.Candidate for elections.

• Correspondents, columnists, Correspondents, columnists, cartoonists, editor, owner, printer.cartoonists, editor, owner, printer.

• Judge, Government servant or Judge, Government servant or employee of any corporationemployee of any corporation

• Member of any LegislatureMember of any Legislature

• Political party or office-bearer Political party or office-bearer thereof.thereof.

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Types of permissionTypes of permission

An association having a definite An association having a definite cultural, economic, educational, cultural, economic, educational, religious or social programme religious or social programme can receive foreign contribution can receive foreign contribution after it obtains the prior after it obtains the prior permission of the Central permission of the Central Government, or gets registered Government, or gets registered with the Central Government.with the Central Government.

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RegistrationRegistration

• Means permanent permission to Means permanent permission to accept foreign contribution from accept foreign contribution from any foreign source.any foreign source.

• Granted to associations which Granted to associations which are in existence for more than 3 are in existence for more than 3 years and have spent over Rs.6 years and have spent over Rs.6 lakhs in last 3 years in chosen lakhs in last 3 years in chosen area of activities.area of activities.

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Prior PermissionPrior Permission

When requiredWhen required• If the association is not eligible for registration;If the association is not eligible for registration;• Association is placed under prior permission Association is placed under prior permission

category under law;category under law;• If association is of political nature, not being a If association is of political nature, not being a

political party.political party.

Essentials for prior permissionEssentials for prior permission• Specific to donor, amount and project;Specific to donor, amount and project;• Commitment letter from donor.Commitment letter from donor.

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PenaltiesPenalties

• Prohibition;Prohibition;

• Placing in prior permission Placing in prior permission category;category;

• Fine;Fine;

• Seizure/confiscation of the foreign Seizure/confiscation of the foreign contribution / created assets;contribution / created assets;

• Imprisonment upto 5 years.Imprisonment upto 5 years.

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Transparency in FCRA Transparency in FCRA Administration Administration

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Common reasons for Common reasons for rejection of registration are rejection of registration are

listed on MHA’s listed on MHA’s website

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Citizen’s Charter is Citizen’s Charter is available on MHA’s websiteavailable on MHA’s website

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Charter for followings Charter for followings stakeholders are available on stakeholders are available on

MHA’s websiteMHA’s website• Charter for NGOs/Associations applying Charter for NGOs/Associations applying

for grant of Prior for grant of Prior permission/Registration under the permission/Registration under the FCRA. FCRA.

• Charter for NGOs/Associations granted Charter for NGOs/Associations granted Prior permission/Registration under the Prior permission/Registration under the FCRA. FCRA.

• Charter for the Chartered Accountants. Charter for the Chartered Accountants. • Charter for the Banks. Charter for the Banks.

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Allowed ActivitiesAllowed Activities

• Programs permitted to be Programs permitted to be carried out by associations carried out by associations having different nature is given having different nature is given on the website.on the website.

• This list is illustrative and not This list is illustrative and not exhaustive.exhaustive.

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• FCR Act is available on FCR Act is available on website.

• Application form for registration / Application form for registration / prior permission in downloadable prior permission in downloadable from are available on website.from are available on website.

• Application form for change in bank Application form for change in bank account number or address in account number or address in downloadable from are available on downloadable from are available on websitewebsite.

Act / FormsAct / Forms

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• Status of application for Status of application for registration / prior permission registration / prior permission is available online;is available online;

• Salient features of Annual Salient features of Annual Report is placed on Report is placed on website.

On – line status queryOn – line status query

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Other informationOther information

• Online list of registered Online list of registered associations is uploaded on associations is uploaded on websitewebsite;;

• List of prohibited / ordered to be on List of prohibited / ordered to be on prior permission category prior permission category associations is available on website.associations is available on website.

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FCMC BillFCMC Bill

• Draft FCMC Bill is placed on Draft FCMC Bill is placed on website for inviting views of website for inviting views of stakeholders;stakeholders;

• Bill is under consideration of Bill is under consideration of GoM.GoM.

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Salient features of BillSalient features of Bill• Decentralized administration structure;Decentralized administration structure;• Registration for - 5 years with a provision for renewal;Registration for - 5 years with a provision for renewal;• Organizations of political nature, not being political Organizations of political nature, not being political

parties, - not allowed; parties, - not allowed; • Allowing multiple bank account for utilization of Allowing multiple bank account for utilization of

foreign fund;foreign fund;• Amount prescribed for receipt from relatives and not Amount prescribed for receipt from relatives and not

considered as FC is being raised;considered as FC is being raised;• Amount of gift from third party not considered on FC Amount of gift from third party not considered on FC

being raised;being raised;• Provision of fixed % ceiling on Admin. Expenses;Provision of fixed % ceiling on Admin. Expenses;• Provisions for suspensions / cancellation;Provisions for suspensions / cancellation;• Mandating banks to report receipt and utilization of Mandating banks to report receipt and utilization of

FC; etc.FC; etc.

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Future plansFuture plans

• Introduction of online Introduction of online applications for FCRA – applications for FCRA – NIC is working on this;NIC is working on this;

• Online submission of Annual Online submission of Annual Returns (FC-3) by Returns (FC-3) by associations – NIC is associations – NIC is working on this.working on this.

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Responsible OfficersResponsible Officers

List of officers dealing with List of officers dealing with FCRA matter is given on FCRA matter is given on

websitewebsite

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For further details please visit our website:For further details please visit our website: www.mha.nic.in www.mha.nic.in