Supreme Court upholds constitutional validity of FCRA Amendment Act, 2020

Last updated: 30 April 2022

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Quick Summary

The Supreme Court of India has affirmed the constitutional validity of the Foreign Contribution (Regulation) Amendment Act, 2020. This Act introduced stricter regulations for NGOs receiving foreign funds, including prohibiting the transfer of funds to other entities and requiring a dedicated FCRA account. The Court ruled that these measures are reasonable restrictions necessary for national security and public interest, not violating fundamental rights.

Court :
Supreme Court of India

Brief :
The term 'foreign contribution' is defined under Section 2(h) of FCRA to mean "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, is not more than such sum as may be specified from time to time, by the Central Government by the rules made by it in this behalf; (ii) of any currency, whether Indian or foreign; (iii) of any security as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 and includes any foreign security as defined in clause (o) of section 2 of the Foreign Exchange Management Act, 1999.

Citation :
[Writ Petition (Civil) No. 566 of 2021] with Writ Petition (Civil) No. 634 of 2021 and Writ Petition (Civil) No. 751 of 2021.

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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