Facing a rejection or cancellation of your FCRA registration can be daunting. This guide provides a comprehensive overview of the appeal process, including essential steps, necessary documentation, and key considerations to help organisations understand their rights and navigate the legal pathways effectively.
Introduction
Under normal circumstances, when FCRA registration has been cancelled or not renewed, the affected organisation has no alternative but to either concede or file for an appeal to the High Court. As per FCRA 2010, the MHA FCRA Division does not have the authority to issue an order of FCRA Rejection or cancellation without specific reasons.
The Foreign Contribution Regulation Act, 2010 explicitly prohibits arbitrary and discretionary non-renewal or cancellation. According to Subsection 16, the renewal can only be denied in case of violation of the Act and the FCRA Division of MHA must furnish the reasons in case of a non-renewal. Hence, there should be a violation of law for any form of action that releases into coercive non-renewal. Subsection 14 specifies five grounds to issue a cancelation certificate provided due inquiry and opportunity to be heard have been given.
If an organisation realises that its registration has been non-renewed or cancelled without instances as defined in FCRA 2010, the organisation can file a petition of review under Section 32 of the Act. A petition of review is a legitimate remedy under the FCRA, and the authority members in FCRA Department senior divisions may revoke the order in case there was fault in the process of non-renewal or cancellation.
Understanding FCRA Provisions
Section 16 of FCRA 2010
Any individual holding a certificate issued under Section 12 must apply for renewal within six months before the certificate expires.
- The Central Government may conduct an inquiry before renewing the certificate to ensure that the person has met all conditions specified in sub-section (4) of Section 12.
- The application for renewal must be submitted to the Central Government in the prescribed form and manner, along with any required fee.
- The Central Government will typically renew the certificate within ninety days of receiving the renewal application, subject to any terms and conditions it considers appropriate.
- The Central Government is required to notify the applicant of the reasons if the certificate is not renewed within ninety days. Furthermore, if the person has violated any of the Act’s guidelines or prohibitions, the Central Government has the right to refuse to renew the certificate.
Section 14 of FCRA 2010
The Central Government may cancel the certificate through an order if, after conducting an inquiry it deems appropriate, it finds that:
(a) The certificate holder provided incorrect or false information in their application for FCRA registration or renewal
(b) The certificate holder has breached any of the terms and conditions of the certificate or its renewal
(c) The Central Government believes it is necessary to cancel the certificate in the public interest
(d) The certificate holder has violated any provisions of the Act or the associated rules or orders
(e) The certificate holder has not engaged in any meaningful activity in their field for the benefit of society for two consecutive years or has become defunct
No cancellation order will be issued without giving the concerned person a reasonable opportunity to be heard. Additionally, any individual whose certificate has been cancelled under this section will be ineligible for registration or FCRA prior permission for three years from the date of cancellation.
Section 32 of FCRA 2010
(1) The Central Government may, either on its own initiative or in response to a revision application from a registered person, review the records of any proceeding under this Act in which it has issued an order. It may conduct or order an inquiry and, in accordance with the provisions of this Act, issue any order it deems appropriate.
(2) The Central Government will not revise any order of its own accord if the order was made more than one year ago
(3) If a registered person wishes to apply for a revision under this section, they must do so within one year from the date the order was communicated to them or the date they otherwise became aware of it, whichever is earlier. However, the Central Government may accept a late application if it is satisfied that the applicant was prevented from applying within the specified period due to sufficient cause
(4) The Central Government will not revise any order if an appeal against that order is possible but has not yet been filed, or if the time to file such an appeal has not expired, or if the right to appeal has not been waived, or if an appeal has already been filed under this Act
(5) Every revision application must be accompanied by the prescribed fee.
Filing an FCRA Review Petition
When to File
A review petition has to be filed within a period of one year. Further an appeal and review petition cannot be made simultaneously, the organisation has to waive its right to appeal before making a review petition. Further, though there is no specific provision regarding appeal against rejection of review petition, in our opinion the organisation shall be entitled to file a writ petition before the High Court in deserving cases.
Preparing the Petition
- A review petition should be drafted as per the provisions of section 32 of the FCRA, 2010. A sample format of the review petition is provided in the Annexure 1.
- The application must be made within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier.
- Kindly make a payment of ₹1,000/- in favour of ‘Pay & Accounts Officer, Ministry of Home Affairs’ payable at Delhi, as per Rule 20 of FCR Rules 2016.
Sample Format
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The Secretary, Ministry of Home Affairs (FCRA Wing) 1st Floor, Major Dhyan Chand National Stadium, Near Pragati Maidan, New Delhi-110001 Re: Petition for Review u/s 32 of Foreign Contribution Regulation Act, 2010 of Non- Application for FCRA Renewal of Registration. Name of Association: XYZ………………………, FC Registration No.000000000 Dt……………….. Ref: MHA File No. ………………………… Sub.: Denial of Application for Renewal. Dear Sir, Facts & History: 1.1 XYZ…………………….. is a charitable organisation duly registered under FCRA since ………………… Copy of FCRA Registration Certificate provided in Annexure 1.\ 1.2 XYZ…………………….. is also registered under section 12AA of the Income Tax Act bearing Registration No……………………… It continues to remain the compliant tax exempt charity under Income Tax Law. Copy of 12AA Registration Certificate provided in Annexure 2. 1.3 XYZ…………………….. has been filing audited statements and annual returns as per the law. There are no proceedings pending against it under the FCRA Law. The copy of the FCRA annual return form and financial statement for past 5 years is provided in Annexure 3. 1.4 XYZ…………………….. applied for Renewal of Registration on ……………….., the acknowledgement receipt from MHA website is provided in Annexure 4. The application for Renewal of Registration was not renewed on …………………., the reasons provided was as under: ‘Your application No………………………….. has been refused due to following reasons: On the basis of Field agency report, the competent authority has decided to refuse your application for renewal.’ The snapshot of the email communication is provided in Annexure 5. 1.12 We humbly submit the petition for review u/s 32 of Foreign Contribution Regulation Act, 2010 of Non-Renewal of Application for Renewal of Registration. Overview of the Activities: ……………………………………………………………………………………………………………………………. ……………… A detailed overview of activities is provided in Annexure 11. Declaration regarding the lawfulness of activities
Issues & Questions of Law
‘Provided further that the Central Government may refuse to renew the certificate in case where a person has violated any of the provisions of this Act or rules made thereunder.’ In the light of the above provision the renewal application can only be denied if there is any violation of any of the provisions of this Act or rules made thereunder.
It is humbly prayed that the non-renewal of the application for renewal may be reviewed and revised and the petitioner may be granted regular registration. Thanking You, Yours sincerely, For XYZ…………………….. |
Cancellation of FCRA Registration Certificate
Under Section 14 of FCRA 2010, the Central Government may cancel a registration certificate for several reasons. However, no certificate can be cancelled without providing the certificate holder a reasonable opportunity to be heard. The provisions for cancellation of a registration certificate under Section 14 are as follows:
(1) The Central Government may cancel the certificate by order if, after conducting an inquiry it deems appropriate, it finds that:
- The certificate holder provided incorrect or false information in their application for registration or renewal
- The certificate holder has breached any of the terms and conditions of the certificate or its renewal
- The Central Government believes cancellation is necessary in the public interest
- The certificate holder has violated any provisions of the Act, or its rules or orders
- The certificate holder has not engaged in meaningful activity for the benefit of society in their field for two consecutive years, or the organisation has become defunct.
2) Make sure the application is submitted on time and that all submission requirements are fulfilled.
3) The application must be electronically submitted using the FCRA online portal to the Secretary, Ministry of Home Affairs, Government of India.
The Opportunity of Being Heard
No cancellation order under this section shall be issued without first providing the concerned person a reasonable opportunity to be heard.
Re-application for FCRA Registration After Cancellation
For three years following the date of cancellation, any individual whose certificate has been revoked under this provision will not be permitted to register or be granted prior authorisation. Only after these three years will applications for registration or prior authorisation be taken into consideration.
Steps for Filing a Reapplication Under FCRA After Cancellation
Step 1: Wait for the Mandatory Period
Ensure that the mandatory waiting period has completed before reapplying. This period can vary depending on the reason for the cancellation and specific guidelines set by the regulatory body.
Step 2: Gather Necessary Documentation
Collect all required documents for the reapplication. This typically includes proof of compliance with previous regulations, updated financial statements, and any other relevant documents that address the reasons for the original cancellation.
Step 3: Draft the Reapplication Petition
Prepare a detailed re-application petition addressing the reasons for the previous cancellation and demonstrating the corrective measures taken. Include a clear explanation of how the issues have been resolved.
Step 4: Pay the Required Fee
Pay any applicable fees associated with the reapplication process. This fee might vary based on the nature of the application and the regulatory body’s guidelines.
Step 5: Submit the Reapplication
Submit your completed reapplication petition along with all supporting documents and proof of payment to the appropriate regulatory authority. Ensure that all submission requirements are met and that the application is submitted before any deadlines.
Conclusion
Any organisation registered under the Foreign Contribution (Regulation) Act, 2010 (FCRA 2010) and aggrieved by an order from the Central Government can apply for a revision under Section 32 of FCRA 2010 and Rule 20 of the Foreign Contribution (Regulation) Rules, 2011 (FCRR 2011). The application must be submitted electronically to the Secretary, Ministry of Home Affairs, Government of India, via the FCRA web portal. A scanned copy of the duly signed application on plain paper is acceptable, and the justification for the revision, along with any supporting documents, should be submitted online. The deadline for filing the application is one year from the date of communication of the order, or one year from the applicant’s awareness of it, whichever comes first. For expert support get in touch with vakilsearch today.
Frequently Asked Questions
Who is eligible to submit a revision application?
Any person registered under the Foreign Contribution (Regulation) Act, 2010 (FCRA 2010) and its associated rules who is dissatisfied with an order from the Central Government may file a revision application as per Section 32 of FCRA 2010 and Rule 20 of the Foreign Contribution (Regulation) Rules, 2011 (FCRR 2011).
How can an association file an application for revision of an order passed by the competent authority under FCRA, 2010?
An application for revising an order must be submitted electronically to the Secretary, Ministry of Home Affairs, Government of India, New Delhi.
Can revision applications be sent through physical mode (on paper mode)?
No. As of 1 September 2022, applications are only accepted in electronic form.
What is the procedure for an association to file an application for revision of an order passed by the competent authority under FCRA, 2010?
Any organisation wishing to file a revision application against an order issued by the competent authority should upload a scanned copy of their application to the FCRA web portal. This should be done under the main heading 'Services under FCRA' and the subheading 'Revision Application under Section 32, FCRA 2010.'
Is it required to send a physical copy of an electronically filed revision application to the Ministry of Home Affairs (MHA)?
There is no requirement to send a physical copy of the revision application or any related documents to the MHA.
Is there any format of revision application?
No. A scanned copy of the duly signed application on plain paper is acceptable.
Is the applicant required to submit justification for revision of Order?
Yes. Justification for the revision of an order must be submitted online along with any supporting documents, if applicable.
What is the fee for making an application for revision of an order passed by the competent authority under FCRA, 2010?
A fee of ₹3000 must be paid using the payment gateway specified by the Central Government. Note: The payment may be subjected to change from time to time. Make sure to connect with our experts for more information.
What is the time limit for making an application for revision of an order passed by the competent authority under FCRA, 2010?
The application must be submitted within one year from the date the order was communicated or from the date the applicant otherwise became aware of it, whichever is earlier.
