Foreign Contribution (Regulation) Act

FOREIGN CONTRIBUTION (REGULATION) ACT, 1976


[Act No. 49 of Year 1976]
An Act to regulate the acceptance and utilisation of foreign contribution or foreign
hospitality by certain persons or associations, with a view to ensuring that
parliamentary institutions, political associations and academic and other voluntary
organisations as well as individuals working in the important areas of national life
may function in a manner consistent with the values of a sovereign democratic
republic, and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Twenty-seventh Year of the Republic of India as
follows: -

CHAPTER I: PRELIMINARY

 

Section 1. Short title, extent, application and commencement

(1) This Act may be called the Foreign Contribution (Regulation) Act, 1976.
(2) It extends to the whole of India, and it shall also apply to-
(a) citizens of India outside India; and
(b) associates, branches or subsidiaries, outside India, of companies or bodies
corporate, registered or incorporated in India.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.

Section 2. Definitions

(1) In this Act, unless the context otherwise requires,-
(a ) "association" means an association of individuals, whether incorporated or
not, having an office in India and includes a society, whether registered under the
Societies Registration Act, 1860 (21 of 1860), or not, and any other organisation, by
whatever name called;
(b) "candidate for election" means a person who has been duly nominated as a
candidate for election to any Legislature;
(c) "foreign contribution" means the donation, delivery or transfer made by any
foreign source-
(i) of any article, not being an article given to a person as a gift for his
personal use, if the market value, in India, of such article, on the date of such gift,
does not exceed one thousand rupees,
(ii) of any currency, whether Indian or foreign;
(iii) of any foreign security as defined in clause (i) of section 2 of the Foreign
Exchange Regulation Act, 1973 (46 of 1973).
1[Explanation: A donation, delivery or transfer of any article, currency or foreign
security referred to in this clause by any person who has received it from any foreign
source, either directly or through one or more persons, shall also be deemed to be
foreign contribution within the meaning of this clause;]
(d) "foreign hospitality" means any offer, not being a purely casual one, made
by a foreign source for providing a person with the costs of travel to any foreign
country or territory or with free board, lodging, transport or medical treatment;
(e) "foreign source" includes-
(i) the government of any foreign country or territory and any agency of
such government,
(ii) any international agency, not being the United Nations or any of its
specialised agencies, the World Bank, International Monetary Fund or such other
agency as the Central Government may, by notification in the Official
Gazette, specify in this behalf,
(iii) a foreign company within the meaning of section 591 of the Companies
Act, 1956 (1 of 1956), and also includes-
(a) a company which is a subsidiary of a foreign company, and
(b) a multi-national corporation within the meaning of this Act.
(iv) a corporation, not being a foreign company, incorporated in a foreign
country or territory,
(v) a multi-national corporation within the meaning of this Act,
(vi) a company within the meaning of the Companies Act, 1956 (1 of 1956),
if more than one-half of the nominal value of its share capital is held, either singly or
in the aggregate, by one or more of the following, namely,-
(a) government of a foreign country or territory,
(b) citizens of a foreign country or territory,
(c) corporations incorporated in a foreign country or territory,
(d) trusts, societies or other associations of individuals (whether
incorporated or not), formed or registered in a foreign country or territory,
(vii) a trade union in any foreign country or territory, whether or not
registered in such foreign country or territory,
(viii) a foreign trust by whatever name called, or a foreign foundation which
is either in the nature of trust or is mainly financed by a foreign country or territory,
(ix) a society, club or other association of individuals formed or registers
outside India,
(x) a citizen of a foreign country,
but does not include any foreign institution which has been permitted by the Central
Government, by notification in the Official Gazette, to carry on its activities in India;
(f) "Legislature" means-
(i) either House of Parliament,
(ii) the Legislative Assembly of a State, or in the case of a State having a
Legislative Council, either House of the Legislature of that State,
(iii) Legislative Assembly of a Union territory constituted under the
Government of Union Territories Act, 1963 (20 of 1963),
(iv) the Metropolitan Council of Delhi constituted under section 3 of the Delhi
Administration Act, 1966(19 of 1966),
(v) Municipal Corporations in metropolitan areas as defined in the Code of
Criminal Procedure, 1973 (2 of.1974),
(vi) District Councils and Regional Councils in the States of Assam and
Meghalaya and in the Union Territory of Mizoram as provided in the VIth Schedule to
the Constitution, or
(vii) any other elective body as may be notified by the Central Government,
as the case may be;
2[(g) "political party" means-
(i) an association or body of individual citizens of India-
(1) which is, or is deemed to be, registered with Election Commission of
India as a political party under the Election Symbols (Reservation and Allotment)
Order, 1968, as in force for the time being; or
(2) which has set up candidates for election to any Legislature, but is not
so registered or deemed to be registered under the Election Symbols (Reservation
and Allotment) Order, 1968;
(ii) a political party mentioned in Column 1 of Table I to the notification of
the Election Commission of India No. 56/J&K/84, dated the 27th September, 1984, as
in force for the time being;]
(h) "prescribed" means prescribed by rules made under this Act;
(i) "registered newspaper" means a newspaper registered under the Press and
Registration of Books Act, 1867(25 of 1867);
(j) "subsidiary" and "associate" have the meanings, respectively, assigned to
them in the Companies Act, 1956(1 of 1956);
(k) "trade union" means a trade union registered under the Trade Unions Act,
1926 (16 of 1926);
Explanation: For the purposes of this Act, a corporation incorporated in a foreign
country or territory shall be deemed to be a multi-national corporation if such
corporation-
(a) has a subsidiary or a branch or a place of business in two or more
countries or territories; or
(b) carries on business, or otherwise operates, in two or more countries or
territories.
(2) Words and expressions used herein and not defined but defined in the Foreign
Exchange Regulation Act, 1973 (46 of 1973), have the meanings respectively
assigned to them in that Act.
(3) Words and expressions used herein and not defined in this Act or in the
Foreign Exchange Regulation Act, 1973 (46 of 1973), but defined in the
Representation of the People Act, 1950 (43 of 1950), or the Representation of the
People Act, 1951 (43 of 1951), have the meanings respectively assigned to them in
such Act.
3. Application of other laws not barred
The provisions of this Act shall be in addition to, and not in derogation of, any other
law for the time being in force.

 

CHAPTER II: REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY

4. Candidate for election, etc., not to accept foreign contribution
(1) No foreign contribution shall be accepted by any-
(a) candidate for election,
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher
of a registered newspaper,
(c) 3[Judge, government servant] or employee of any corporation,
(d) member of any Legislature,
(e) political party or office-bearer thereof.
Explanation: In clause (c) and in section 9, "corporation" means a corporation
owned or controlled by government and includes a government company as defined
in section 617 of the Companies Act, 1956 (1 of 1956).
(2) (a) No person, resident in India, and no citizen of India resident outside
India, shall accept any foreign contribution, or acquire or agree to acquire any
currency from a foreign source, on behalf of any political party, or any person
referred to in sub-section (1), or both.
(b) No person, resident in India, shall deliver any currency, whether Indian
or foreign, which has been accepted from any foreign source, to any person if he
knows or has reasonable cause to believe that such other person intends, or is likely,
to deliver such currency to any political party or any person referred to in subsection
(1), or both.
(c) No citizen of India resident outside India shall deliver any currency,
whether Indian or foreign, which has been accepted from any foreign source, to-
(i) any political party or any person referred to in sub-section (1), or
both, or (ii) any other person, if he knows or has reasonable cause to believe that
such other person intends, or is likely, to deliver such currency to a political party or
to any person referred to in sub-section (1), or both.
(3) No person receiving any currency, whether Indian or foreign, from a foreign,
source on behalf of any association, referred to in sub-section (1) of section 6, shall
deliver such currency-
(i) to any association or organisation other than the association for
which it was received, or
(ii) to any other person, if he knows or has reasonable cause to believe
that such other person intends, or is likely, to deliver such currency to an association
other than the association for which such currency was received.
5. Organisation of a political nature not to accept foreign contribution except with the
prior permission of the Central Government
(1) No organisation of a political nature, not being a political party, shall, accept
any foreign contribution except with the prior permission of the Central Government.
Explanation: For the purposes of this section, "organisation of a political nature, not
being a political party" means such organisation as the Central Government may,
having regard to the activities of the organisation or the ideology propagated by the
organisation or the programme of the organisation or the association of the
organisation with the activities of any political party, by an order published in the
Official Gazette, specify in this behalf.
(2) (a) Except with the prior permission of the Central Government, no person,
resident in India and no citizen of India, resident outside India, shall accept any
foreign contribution, or acquire or agree to acquire any foreign currency, on behalf of
an organisation referred to in sub-section (1).
(b) Except with the prior permission of the Central Government, no person,
resident in India, shall deliver any foreign currency to any person if he knows or has
reasonable cause to believe that such other person intends, or is likely, to deliver
such currency to an organisation referred to in sub-section (1).
(c) Except with the prior approval of the Central Government, no citizen of
India, resident outside India, shall deliver any currency, whether Indian or foreign,
which has been accepted from any foreign source, to-
(i) any organisation referred to in sub-section (1), or
(ii) any person, if he knows or has reasonable cause to believe
that such person intends, or is likely, to deliver such currency to an organisation
referred to in sub-section (1).
6. Certain associations and persons receiving foreign contribution to give intimation
to the Central Government 4[(1) No association other than an organisation referred
to in sub-section (1) of section 5 having a definite cultural, economic, educational,
religious or social programme shall accept foreign contribution unless such
association,-
(a) registers itself with the Central Government in accordance with the
rules made under this Act; and
(b) agrees to receive such foreign contributions only through such one of
the branches of a bank as it may specify in its application for such registration,
and every association so registered shall give, within such time and in such
manner as may be prescribed, an intimation to the Central Government as to the
amount of each foreign contribution received by it, the source from which and the
manner in which such foreign contribution was received and the purposes for which,
and the manner in which, such foreign contribution was utilised by it:
PROVIDED that where such association obtains any foreign contribution through
any branch other than the branch of the bank through which it has agreed to receive
foreign contribution or fails to give such intimation within the prescribed time or in
the prescribed manner, or gives any intimation which is false, the Central
Government may, by notification in the Official Gazette, direct that such association
shall not, after the date of issue of such notification, accept any foreign contribution
without the prior permission of the Central Government.
(1A) Every association referred to in sub-section (1) may, if it is not registered
with the Central Government under that sub-section, accept any foreign contribution
only after obtaining the prior permission of the Central Government and shall also
give, within such time and in such manner as may be prescribed an intimation to the
Central Government as to the amount of foreign contribution received by it, the
source from which and the manner in which such foreign contribution was received
and the purpose for which and the manner in which such foreign contribution was
utilised by it.
(2) Every candidate for election, who had received any foreign contribution, at
any time within one hundred and eighty days immediately preceding the date on
which he is duly nominated as such candidate, shall give, within such time and in
such manner as may be prescribed, an intimation to the Central Government as to
the amount of foreign contribution received by him, the source from which and the
manner in which such foreign contribution was received and the purposes for which,
and the manner in which, such foreign contribution was utilised by him.
7. Recipients of scholarships, etc., to give intimation to the Central Government
(1) Every citizen of India receiving any scholarship, stipend or any payment of a
like nature from any foreign source shall give, within such time and in such manner
as may be prescribed, an intimation to the Central Government as to the amount of
the scholarship, stipend or other payment received by him and the foreign source
from which, and the purpose for which, such scholarship, stipend or other payment
has been, or is being, received by him.
(2) Where any recurring payments are being received by any citizen of India
from any foreign source by way of scholarship, stipend or other payment, it shall be
sufficient if the intimation referred to in sub-section (1) includes a precise
information as to the intervals at which, and the purpose for which, such recurring
payments will be received by such citizen of India.
(3) It shall not be necessary to give such intimation as is referred to in subsection
(1) or sub-section (2) in relation to scholarships, stipends or payments of a
like nature, if the annual value of such scholarships, stipends or other payments
does not exceed such limits as the Central Government may, by rules made under
this Act, specify in this behalf.
8. Persons to whom section 4 shall not apply
Nothing contained in section 4 shall apply to the acceptance, by any person
specified in that section, of any foreign contribution, where such contribution is
accepted by him, subject to the provisions of section 10,-
(a) by way of salary, wages or other remuneration due to him or to any group
of persons working under him, from any foreign source or by way of payment in the
ordinary course of business transacted in India by such foreign source; or
(b) by way of payment, in the course of international trade or commerce, or in
the ordinary course of business transacted by him outside India; or
(c) as an agent of a foreign source in relation to any transaction made by such
foreign source with government; or
(d) by way of a gift or presentation made to him as a member of any Indian
delegation, provided that such gift or present was accepted in accordance with the
regulations made by the Central Government with regard to the acceptance or
retention of such gift or presentation; or
(e) from his relative when such foreign contribution has been received with the
previous permission of the Central Government:
PROVIDED that no such permission shall be required if the amount of foreign
contribution received by him from his relative does not exceed, in value, eight
thousand rupees per annum and an intimation is given by him to the Central
Government as to the amount received, the source from which and the manner in
which it was received and the purpose for which and the manner in which it was
utilised by him,
(f) by way of remittance received, in the ordinary course of business, through
any official channel, post office, or any authorised dealer in foreign exchange under
the Foreign Exchange Regulation Act, 1973 (46 of 1973).
Explanation: In this Act, the expression "relative" has the meaning assigned to it in
the Companies Act, 1956 (1 of 1956).
9. Restrictions on acceptance of foreign hospitality
No member of a Legislature, office-bearer of a political party,
1[Judge,]government servant or employee of any corporation shall, while visiting -
any country or territory outside India, accept, except with the prior permission of the
Central Government, any foreign hospitality:
PROVIDED that it shall not be necessary to obtain any such permission for an
emergent medical aid needed on account of sudden illness contracted during a visit
outside India, but, where such foreign hospitality has been received, the person
receiving such hospitality shall give, within one month from the date of receipt of
such hospitality, an intimation to the Central Government as to the receipt of such
hospitality and the source from which, and the manner in which, such hospitality was
received by him.
10. Power of Central Government to prohibit receipt of foreign contribution, etc., in
certain cases
The Central Government may-
(a) prohibit any association, not specified in section 4, or any person, from
accepting any foreign contribution;
(b) 5[without prejudice to the provisions of sub-section (1) of section 6, require
any association specified in that sub-section], to obtain prior permission of the
Central Government before accepting any foreign contribution;
(c) require any person or class of persons or any association not being an
association specified in section 6, to furnish intimation within such time and in such
manner as may be prescribed as to the amount of any foreign contribution received
by such person or class of persons or association, as the case may be, and the
source from which and the manner in which such contribution was received and the
purpose for which and the manner in which such foreign contribution was utilised;
(d) require any person or class of persons, not specified in section 9, to obtain
prior permission of the Central Government before accepting any foreign hospitality;
(e) require any person or class of persons, not specified in section 9, to furnish
intimation, within such time and in such manner as may be prescribed, as to the
receipt of any foreign hospitality, the source from which and the manner in which
such hospitality was received :
PROVIDED that no such prohibition or requirement shall be made unless the
Central Government is satisfied that the acceptance of foreign contribution by such
association or person or class of persons, as the case may be, the acceptance of
foreign hospitality by such person, is likely to affect prejudicially-
(i) the sovereignty and integrity of India; or
(ii) the public interest; or
(iii) freedom or fairness of election to any Legislature; or
(iv) friendly relations with any foreign State; or
(v) harmony between religious, racial, linguistic or regional groups, castes
or communities.
11. Application to be made in prescribed form for obtaining prior permission to
accept foreign contribution or hospitality
(1) Every individual, association, organisation or other person, who is required
by or under this Act to obtain the prior permission of the Central Government to
accept any foreign contribution, or foreign hospitality, shall before the acceptance of
any such contribution or hospitality, make an application for such permission to the
Central Government in such form and in such manner as may be prescribed.
(2) If an application referred to in sub-section (1) is not disposed of within
ninety days from the date of receipt of such application, the permission prayed for in
such application shall, on the expiry of the said period of ninety days, be deemed to
have been granted by the Central Government:
PROVIDED that, where in relation to an application, the Central Government
has informed the applicant the special difficulties by reason of which his application
cannot be disposed of within the said period of ninety days, such application shall
not, until the expiry of a further period of thirty days, be deemed to have been
granted by the Central Government

 

CHAPTER III: MISCELLANEOUS

12. Power to prohibit payment of currency received in contravention of the Act
Where the Central Government is satisfied, after making such enquiry as it may
deem fit, that any person has in his custody or control any article or currency,
whether Indian or foreign, which has been accepted by such person in contravention
of any of the provisions of this Act, it may, by order in writing, prohibit such person
from paying, delivering, transferring or otherwise dealing with, in any manner
whatsoever, such article or currency save in accordance with the written orders of
the Central Government and a copy of such order shall be served upon the person so
prohibited in the prescribed manner, and thereupon the provisions of sub-sections
(2), (3), (4) and (5) of section 7 of the Unlawful Activities (Prevention) Act, 1967 (37
of 1967), shall, so far as may be, apply to, or in relation to, such article or currency
and references in the said sub-sections to moneys, securities or credits shall be
construed as references to such article or currency.
13. Recipients of foreign contribution to maintain accounts, etc.
Every association, referred to in section 6, shall maintain, in such form and in
such manner as may be prescribed,-
(a) an account of any foreign contribution received by it, and
(b) a record as to the manner in which such contribution has been utilised by
it.
14. Inspection of accounts or records
If the Central Government has, for any reason, to be recorded in writing, any
ground to suspect that any provision of this Act has been, or is being, contravened
by-
(a) any political party, or
(b) any person, or
(c) any organisation, or
(d) any association,
it may, by general or special order, authorise such gazetted officer, holding a
6[Group A post], as it may think fit (hereinafter referred to as the authorised
officer), to inspect any account or record maintained by such political party, person,
organisation or association, as the case may be, and thereupon every such
authorised official shall have the right to enter in or upon any premises at any
reasonable hour, before sunset and after sunrise, for the purpose of inspecting the
said account or record :
PROVIDED that no gazetted officer shall be authorised to inspect the account or
record maintained by a political party, unless he has been holding a 6[Group A post]
in connection with the affairs of the Union or a State, for not less than ten years.
15. Seizure of accounts or records
If, after inspection of an account or record referred to in section 14, the
authorised officer has any reasonable cause to believe that any provision of this Act
or of any other law relating to foreign exchange has been, or is being, contravened,
he may seize such account or record and produce the same before the court in which
any proceeding is brought for such contravention:
PROVIDED that the authorised officer shall return such account or record to the
person from whom it was seized if no proceeding is brought within six months from
the date of such seizure for the contravention disclosed by such account or record.
15A. Audit of accounts
Where any organisation or association fails to furnish any returns under this Act
within the time specified therefor or the returns so furnished are not in accordance
with law or if, after inspection of such returns, the Central Government has any
reasonable cause to believe that any provision of this Act has been, or is being,
contravened, that government may, by general or special order, authorise such
gazetted officer, holding a Group A post, as it may think fit, to audit any books of
account kept or maintained by such organisation or association, as the case may be,
and thereupon every such officer shall have the right to enter in or upon any
premises at any reasonable hour, before sunset and after sunrise, for the purpose of
auditing the said books of account:
PROVIDED that any information obtained from such audit shall be kept
confidential and shall not be disclosed except for the purposes of this Act.]
16. Seizure of article or currency received in contravention of the Act
If any gazetted officer, authorised in this behalf by the Central Government, by
general or special order, has any reason to believe that any person has in his
possession or control any article exceeding rupees one thousand in value, or
currency, whether Indian or foreign, in relation to which any provision of this Act has
been, or is being, contravened, he may seize such article or currency.
17. Seizure to be made in accordance with the Code of Criminal Procedure, 1973
Every seizure made under this Act shall be made in accordance with the
provision of section 100 of the Code of Criminal Procedure, 1973 (2 of 1974).
18. Confiscation of article or currency obtained in contravention of the Act
Any article or currency which is seized under section 16 shall be liable to
confiscation if such article or currency has been adjudged under section 19 to have
been received or obtained in contravention of this Act.
19. Adjudication of confiscation
Any confiscation referred to in section 18 may be adjudged-
(a) without limits, by the Court of Session within the local limits of whose
jurisdiction the seizure was made;and
(b) subject to such limits as may be prescribed, by such officer not below
the rank of an Assistant Sessions Judge, as the Central Government may, by
notification in the Official Gazette, specify in this behalf.
20. Opportunity to be given before adjudication of confiscation
No order of adjudication of confiscation shall be made unless a reasonable
opportunity of making a representation against such confiscation has been given to
the person from whom any article or currency has been seized.
21. Appeal
(1) Any person aggrieved by any order made under section 19 may prefer an
appeal-
(a) where the order has been made by the Court of Session, to the
High Court to which such court is subordinate; or
(b) where the order has been made by any officer specified under
clause (b) of section 19, to the Court of Session within the local limits of whose
jurisdiction such order of adjudication of confiscation was made, within one month
from the date of communication to such person of the order:
PROVIDED that the appellate court may, if it is satisfied that the appellant
was prevented by sufficient cause from preferring the appeal within the said period
of one month, allow such appeal to be preferred within a further period of one
month, but not thereafter.
(2) Any organisation referred to in section 5, or any person or association
referred to in section 9 or section 10, aggrieved by an order made in pursuance of
the Explanation to sub-section (1) of section 5 or by an order of the Central
Government refusing to give permission, or by any order made by the Central
Government, under section 5 or section 9 or section 10, as the case may be, may
within sixty days from the date of such order prefer an appeal against such order to
the High Court within the local limits of whose jurisdiction the appellant ordinarily
resides or carries on business or personally works for gain, or, where the appellant is
an organisation or association, the principal office of such organisation or
association is located.
(3) Every appeal preferred under this section shall be deemed to be an appeal
from an original decree and the provisions of Order XLI of the First Schedule to the
Code of Civil Procedure, 1908 (5 of 1908), shall, as far as may be, apply thereto as
they apply to an appeal from an original decree.
22. Penalty for article or currency obtained in contravention of section 12
If any person, on whom any prohibitory order has been served under section 12,
pays, delivers, transfers or otherwise deals with, in any manner whatsoever, any
article or currency, whether Indian or foreign, in contravention of such prohibitory
order, he shall be punished with imprisonment for a term which may extend to three
years, or with fine, or with both; and notwithstanding anything contained in the Code
of Criminal Procedure, 1973(2 of 1974), the court trying such contravention may
also impose on the person convicted and additional fine equivalent to the market
value of the article or the amount of the currency in respect of which the prohibitory
order has been contravened by him or such part thereof as the court may deem fit.
23. Punishment for the contravention of any provision of the Act
(1) Whoever accepts, or assists any person, political party or organisation in
accepting any foreign contribution or any currency from a foreign source, in
contravention of any provision of this Act or any rule made thereunder, shall be
punished with imprisonment for a term which may extend to five years, or with fine,
or with both.
(2) Whoever accepts any foreign hospitality in contravention of any provision of
this Act or any rule made thereunder, shall be punished with imprisonment for a
term which may extend to three years, or with fine, or with both.
24. Power to impose additional fine where article or currency is not available for
confiscation
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), the court trying a person, who, in relation to any article or currency,
whether Indian or foreign, does or omits to do any act which act or omission would
render such article or currency liable to confiscation under this Act, may, in the event
of the conviction of such person for the act or omission aforesaid, impose on such
person a fine not exceeding five times the value of the article or currency or one
thousand rupees, whichever is more, if such article or currency is not available for
confiscation, and the fine so imposed shall be in addition to any other fine which may
be imposed on such person under this Act.
25. Penalty for offences where no separate punishment has been provided
Whoever fails to comply with any provision of this Act for which no separate
penalty has been provided in this Act shall be punished with imprisonment for a term
which may extend to one year, or with fine not exceeding one thousand rupees, or
with both.
25A. Prohibition of acceptance of foreign contribution
Notwithstanding anything contained in this Act, whoever, having been convicted
of any offence under sub-section(1) of section 23 or section 25, insofar as such
offence relates to the acceptance or utilisation of foreign contribution, is again
convicted of such offence shall not accept any foreign contribution for a period of
three years from the date of the subsequent conviction.]
26. Offences by companies
(1) Where an offence under this Act or any rule made thereunder has been
committed by a company, every person who, at the time the offence was,
committed, was in charge of, and was responsible to, the company for the conduct of
the business of the company, as well as the company, shall be deemed to be guilty
of the offence and shall be liable to be proceeded against and punished accordingly:
PROVIDED that nothing contained in this sub-section shall render such person
liable to any punishment if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence
under this Act or any rule made thereunder has been committed by a company and it
is proved that the offence has been committed with the consent or connivance of, or
is attributable to any neglect on the part of, any director, manager, secretary or
other officer of the company, such director, manager, secretary or other officer shall
also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation: For the purposes of this section,-
(a) "company" means any body corporate and includes a firm, society,
trade union or other association of individuals; and
(b) "director", in relation to a firm, society, trade union or other
association of individuals, means a partner in the firm or a member of the governing
body of such society, trade union or other association of individuals.
27. Bar to the prosecution of offences under the Act
No court shall take cognizance of any offence under this Act, except with the
previous sanction of the Central Government or any officer authorised by that
Government in this behalf.
28. Investigation into cases under the Act
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), any offence punishable under this Act may also be investigated into by
such authority as the Central Government may specify in this behalf and the
authority so specified shall have all the powers which an officer-in-charge of a police
station has while making an investigation into a cognizable offence.
29. Protection of action taken in good faith
No suit or other legal proceedings shall lie against the Central Government in
respect of any loss or damage caused or likely to be caused by anything which is in
good faith done or intended to be done in pursuance of the provisions of this Act or
any rule or order made thereunder.
30. Power to make rules
(1) The Central Government may, by notification in the Official Gazette, make
rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely,-
(a) the time within which, and the manner in which, intimation is to be
given by an association referred to in section 6, with regard to the foreign
contributions received by it;
(b) the limits up to which receipt of scholarship, stipends or payments of
a like nature need not be intimated to the Central Government;
(c) the time within which, and the manner in which, intimation is to be
given by persons receiving any scholarship, stipend or any payment of a like nature
from a foreign source;
(d) the time within which, and the manner in which a candidate for
election should give intimation as to the amount of foreign contribution received by
him at any time within one hundred and eighty days from the date when he became
such candidate;
(e) the form and manner in which an application shall be made for
obtaining prior permission of the Central Government to receive foreign contribution
or foreign hospitality;
(f) the manner of service of the prohibitory order made under section 12;
(g) the form and manner in which account or record referred to in section
13 shall be maintained;
(h) the limits up to which an officer, not below the rank of an Assistant
Sessions Judge, may make adjudication of confiscation;
(i) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as
soon as may be after it is made, before each House of Parliament, while it is in
session for a total period of thirty days which may be comprised in one session or in
two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be
made, the rule shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment
shall be without prejudice to the validity of anything previously done under that rule.
31. Power to exempt
If the Central Government is of opinion that it is necessary or expedient in the
interests of the general public so to do, it may, by order and subject to such
conditions as may be specified in the order, exempt any association (not being a
political party), organisation or any individual (not being a candidate for election)
from the operation of all or any of the provisions of this Act and may, as often as
may be necessary, revoke or modify such order.
32. Act not to apply to government transactions
Nothing contained in this Act shall apply to any transaction between the
Government of India and the government of any foreign country or territory.

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