Foreign Contribution Regulation Act 2010
Section 34 FCRA 2010: Penalty for Contravention of a Section 10 Prohibitory Order
Section 34 of the Foreign Contribution (Regulation) Act, 2010 creates a specific criminal penalty where a person, after being served with a prohibitory order under Section 10, deals with the covered article, currency or security in breach of that order.
At a glance: The provision can result in imprisonment for up to three years, or fine, or both. The trial court may also impose an additional fine linked to the market value of the article or the amount of the currency or security involved.
What Section 34 provides
If a person on whom a prohibitory order under Section 10 has been served pays, delivers, transfers or otherwise deals with the article, currency or security covered by that order in contravention of it, Section 34 provides punishment of imprisonment for a term which may extend to three years, or fine, or both.
The section further authorises the court trying the contravention to impose, upon conviction, an additional fine equivalent to the market value of the article or the amount of the currency or security concerned, or such part of that value or amount as the court considers fit.
Meaning and purpose of Section 10
Section 10 is titled "Power to prohibit payment of currency received in contravention of the Act." It operates where the Central Government, after such inquiry as it considers fit, is satisfied that a person has in his custody or control an article, currency or security, whether Indian or foreign, which was accepted in contravention of the FCRA.
The Central Government may then issue a written order prohibiting that person from paying, delivering, transferring or otherwise dealing with the specified property except in accordance with the written orders of the Central Government. The order is required to be served on the person concerned in the prescribed manner.
When Section 34 is attracted
Read with Section 10, the essential statutory sequence is important. Section 34 is not merely a general penalty for an irregular FCRA transaction. It is directed at dealing with property contrary to a prohibitory order already made and served under Section 10.
| Requirement | What it means |
|---|---|
| Section 10 order | A written prohibitory order must have been made under Section 10 in relation to the relevant article, currency or security. |
| Service of order | Section 34 expressly refers to a person on whom the prohibitory order has been served. |
| Prohibited dealing | The person pays, delivers, transfers or otherwise deals with the covered article, currency or security. |
| Contravention | The dealing is contrary to the prohibitory order rather than in accordance with the written orders of the Central Government. |
Punishment under Section 34
- Imprisonment: may extend to three years.
- Fine: may be imposed instead of, or together with, imprisonment.
- Additional fine: after conviction, the court may impose an additional fine equivalent to the market value of the article or the amount of the currency or security involved, or such part as the court deems fit.
The text of Section 34 contains a non-obstante reference to the Code of Criminal Procedure, 1973 in relation to this additional fine. That reference is part of the enacted wording of Section 34. Criminal procedure in India is now generally governed by the Bharatiya Nagarik Suraksha Sanhita, 2023 from 1 July 2024, subject to its commencement and savings framework; the FCRA provision itself should therefore be read with the currently applicable procedural law.
Difference between Section 10 and Section 34
Section 10 is preventive and restrictive: it empowers the Central Government to stop a person from dealing with specified property accepted in contravention of the Act. Section 34 is penal: it prescribes punishment when the served prohibitory order is itself contravened.
Practical legal significance
For a Section 34 issue, the prohibitory order and proof of its service are central documents. The scope of the order, the property to which it applies, the act alleged to amount to dealing with that property, and whether the act was contrary to the order are all directly relevant to the statutory provision.
Section 34 should also be distinguished from other FCRA penalty provisions. For example, Section 35 addresses punishment for specified contraventions involving acceptance of foreign contribution or currency or security from a foreign source, while Sections 36 and 37 deal with other penalty situations. The applicable provision depends on the facts and the particular statutory contravention alleged.
Official FCRA resources
For the authoritative statutory text and current regulatory material, consult the official Foreign Contribution (Regulation) Act, 2010 on India Code, the Ministry of Home Affairs Foreigners-II Division, and the FCRA Online Services portal.
Legal note: This article explains the statutory framework in general terms. FCRA proceedings can depend on the wording and service of the particular order, the nature and source of the property, subsequent directions, and the procedural law applicable to the proceeding.
Law and official resources checked: 27 September 2026.