Suspension, Cancellation and Surrender of Registration
Disclaimer: This document is intended solely for educational purposes. The content herein is subject to change based on evolving finance trends and any relevant rulings by the Government of India. Readers are advised to consult with qualified professionals for specific guidance related to their individual circumstances.
A. Suspension/ Cancellation
Q1. Can the Government cancel the certificate of registration granted to a person under FCRA?
Yes. The Central Government may cancel the certificate as per the provisions of section 14 of the FCRA, 2010.
NOTE – Any person whose certificate has been cancelled under this section shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of such certificate.
Q2. Can the Government suspend the certificate of registration granted to persons under FCRA?
Yes. The Central Government may suspend the certificate as per the provisions of section 13 of the FCRA, 2010 for a period not exceeding one hundred and eighty days and extend the suspension period for another one hundred and eighty days.
Q3. What are the consequences of suspension of the registration certificate granted to a person under FCRA?
A person whose FCRA registration certificate has been suspended shall:-
(a) not receive any foreign contribution during the period of suspension of certificate; provided that the Central Government specifically approves it on a case to case basis.
(b) not utilise the unutilized FC in his custody without the prior approval of the Central Government. Even in this case, only upto twenty-five percent of the unutilized amount may be spent, with the prior approval of the Central Government, for the declared aims and objects for which the foreign contribution was received. The remaining seventy- five percent of the unutilized foreign contribution shall be utilised only after revocation of suspension of the certificate of registration.
B. Surrender of Certificate of Registration
Q4. How can any person surrender the Certificate granted?
Any organisation who wants to forgo/ foreclose its FCRA registration due to its own reasons may surrender the certificate by uploading application online in form FC-7 on the website https://fcraonline.nic.in
Q.5 What will be the ultimate status of assets created by foreign contributions and unutilized amounts lying in bank accounts in the event of surrender/ cancellation/ ceasing of certificate?
In the event that any person who was permitted to accept foreign contribution ceases to exist/ cancelled/ wishes to surrender, all the physical assets and unutilized foreign contribution in bank of such person shall be disposed off in accordance with the law.