Section 10 FCRA 2010: Power to Prohibit Payment of Currency Received in Contravention
Section 10 of the Foreign Contribution (Regulation) Act, 2010 gives the Central Government power to restrain a person from paying, delivering, transferring or otherwise dealing with an article, currency or security that has been accepted in contravention of the Act.
What Section 10 of the FCRA provides
Where the Central Government, after such inquiry as it considers fit, is satisfied that a person has in his custody or control any article, currency or security, whether Indian or foreign, accepted in contravention of the FCRA, it may issue a written order prohibiting that person from paying, delivering, transferring or otherwise dealing with it except in accordance with the written orders of the Central Government. A copy of the prohibitory order must be served on the person in the prescribed manner.
The section further provides that sub-sections (2), (3), (4) and (5) of Section 7 of the Unlawful Activities (Prevention) Act, 1967 apply, so far as may be, to the article, currency or security covered by the FCRA order.
Essential conditions for exercise of the power
- Central Government satisfaction: the power is exercisable when the Central Government is satisfied, after making such inquiry as it deems fit, that the statutory conditions exist.
- Custody or control: the article, currency or security must be in the custody or control of the person concerned.
- Contravention of FCRA: the property must have been accepted in contravention of a provision of the Foreign Contribution (Regulation) Act, 2010.
- Written prohibitory order: the restraint must be made by an order in writing.
- Service of order: a copy of the order must be served upon the prohibited person in the prescribed manner.
Meaning and effect of a prohibitory order
A Section 10 order restricts dealing with the identified article, currency or security. The person subject to the order cannot pay, deliver, transfer or otherwise deal with it in any manner except in accordance with written directions of the Central Government.
The provision is therefore protective and preventive in operation. It is aimed at preserving control over property that the Central Government considers to have been accepted contrary to the FCRA while the statutory procedure applies.
How UAPA Section 7 becomes relevant
Section 10 does not create a separate detailed procedure for every consequence of the prohibitory order. Instead, it applies sub-sections (2) to (5) of Section 7 of the Unlawful Activities (Prevention) Act, 1967, with necessary adaptation. In that cross-application, references to moneys, securities or credits are read as references to the article, currency or security covered by the FCRA order.
Connection with other FCRA provisions
Section 10 forms part of Chapter II of the FCRA, which regulates foreign contribution and foreign hospitality. It follows Section 9, dealing with the Central Government's power to prohibit receipt of foreign contribution in specified cases, and precedes Section 11, which deals with registration and prior permission requirements for receipt of foreign contribution.
Current legal framework
The Foreign Contribution (Regulation) Act, 2010 and the Foreign Contribution (Regulation) Rules, 2011 remain the principal statutory framework for regulation of foreign contribution. The official FCRA portal publishes the Act, amendments, Rules, amended Rules, notifications and compliance services. Users dealing with an actual FCRA matter should check the latest notification, rule amendment and order applicable to their facts.
Last reviewed: 27 September 2026. This page is an explanatory legal reference and should be read with the current statutory text and applicable government orders.