Foreign contribution act and rules

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k.v.subrahmanyam

k.v.subrahmanyam (Querist)

07 December 2021 Respected sirs
I have two quieries.
1. Is it madatory under the provisions of FCRA act or rules to appoint one MBA HR ?
2. Is it madatory under the provisons of FCRA act or rules to establish a purchase committee, record the contract awarded in resolution book of governing committee?
kindly advice
Adv Subrahmanyam

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

07 July 2024 Let's address each of your queries regarding the Foreign Contribution (Regulation) Act (FCRA) and its provisions:

1. **Appointment of MBA HR**: The FCRA does not specifically mandate the appointment of an MBA HR (Master of Business Administration in Human Resources). The act primarily regulates the acceptance and utilization of foreign contributions by NGOs, associations, and other entities. However, entities are generally required to maintain proper personnel records and ensure that personnel involved in FCRA-related activities comply with the provisions of the act and related rules.

2. **Establishment of Purchase Committee and Record Keeping**: The FCRA itself does not explicitly require the establishment of a purchase committee or mandate the recording of contracts awarded in a resolution book of the governing committee. However, these practices may be part of internal governance and compliance measures adopted by organizations to ensure transparency, accountability, and proper utilization of foreign contributions.

**Key Considerations**:
- **Compliance with Internal Policies**: While not mandated by FCRA, establishing a purchase committee and maintaining records in a resolution book can help in demonstrating transparent procurement practices and adherence to organizational policies.

- **Focus on FCRA Compliance**: The primary focus under FCRA should be on compliance with the provisions related to receipt, utilization, and reporting of foreign contributions. This includes maintaining proper records, submitting annual returns, and ensuring that funds are used only for permissible activities as per FCRA guidelines.

For specific guidance tailored to your organization's situation and compliance needs, it's recommended to consult with a legal advisor specializing in FCRA regulations or a compliance expert who can provide detailed advice based on the nature and operations of your entity. This ensures that your organization meets both statutory requirements and internal governance standards effectively.

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