Foreign Contribution Regulation Act, 2010
Section 14 FCRA 2010: Cancellation of Registration Certificate
Section 14 of the Foreign Contribution (Regulation) Act, 2010 empowers the Central Government to cancel an FCRA registration certificate on specified statutory grounds. Cancellation cannot be ordered without giving the person concerned a reasonable opportunity of being heard.
What Section 14 means
The FCRA regulates the acceptance and utilisation of foreign contribution and foreign hospitality. Registration under the Act permits an eligible person to receive foreign contribution subject to the Act, the Foreign Contribution (Regulation) Rules, 2011 and the conditions governing the registration.
Section 14 deals specifically with cancellation of an existing certificate. It is different from suspension under Section 13. Cancellation terminates the certificate and also produces the statutory disqualification stated in Section 14(3).
Text and explanation of Section 14
Section 14(1). The Central Government may, after making such inquiry as it considers fit and on being satisfied that a statutory ground exists, cancel the certificate by an order.
Clause (a): False or incorrect statement. Cancellation may follow where the certificate holder made an incorrect or false statement in, or in relation to, the application for registration or renewal.
Clause (b): Breach of certificate conditions. The certificate may be cancelled if its holder violates any term or condition of the certificate or its renewal.
Clause (c): Public interest. Cancellation may be ordered where, in the opinion of the Central Government, cancellation is necessary in the public interest.
Clause (d): Violation of FCRA law. The provision applies where the certificate holder violates the FCRA, the rules, or an order made under the Act.
Clause (e): Inactivity or defunct status. Cancellation may follow if the certificate holder has not undertaken any reasonable activity in its chosen field for the benefit of society for two consecutive years, or has become defunct.
Reasonable opportunity of hearing under Section 14(2)
Section 14(2) contains an express procedural safeguard. No cancellation order may be made unless the person concerned has been given a reasonable opportunity of being heard. The provision therefore requires an opportunity to respond before the certificate is cancelled.
Effect of cancellation under Section 14(3)
A person whose certificate has been cancelled under Section 14 is not eligible for FCRA registration or prior permission for three years from the date of cancellation. This consequence follows from the cancellation itself.
Related provisions
Section 13 deals with suspension of a certificate. Section 14 deals with cancellation. The Act now also contains Section 14A, dealing with surrender of a certificate. Section 15 governs management of foreign contribution and assets created from it where a certificate has been cancelled or surrendered.
Official FCRA resources
For the authoritative statutory text and current administration of FCRA matters, consult the Foreign Contribution (Regulation) Act, 2010 on India Code, the Ministry of Home Affairs FCRA division, and the official online FCRA services page.
Frequently asked questions
Can an FCRA certificate be cancelled without a hearing?
Section 14(2) states that no cancellation order shall be made unless the person concerned has been given a reasonable opportunity of being heard.
What are the main grounds for cancellation?
The grounds in Section 14(1) cover false or incorrect statements connected with registration or renewal, breach of certificate conditions, public interest, violation of the Act or subordinate law, and two consecutive years of lack of reasonable activity for the benefit of society or becoming defunct.
How long does the post-cancellation bar continue?
Section 14(3) provides a three-year period from the date of cancellation during which the person is not eligible for registration or prior permission.