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Section 35 FCRA 2010: Punishment for Contravention of the Act

Section 35 of the Foreign Contribution (Regulation) Act, 2010 provides a criminal punishment where a person accepts, or assists another person, political party or organisation in accepting, foreign contribution or currency or security from a foreign source in contravention of the Act, the Rules, or an order made under the Act.

Section 35 - Punishment for contravention of any provision of the Act

Whoever accepts, or assists any person, political party or organisation in accepting, any foreign contribution or any currency or security from a foreign source, in contravention of any provision of this Act or any rule or order made thereunder, shall be punished with imprisonment for a term which may extend to five years, or with fine, or with both.

Maximum imprisonmentUp to five years.
Other punishmentFine, or both imprisonment and fine.
Conduct coveredAcceptance, or assistance in acceptance, contrary to the Act, Rules or an order.
Subject matterForeign contribution, or currency or security from a foreign source.

What Section 35 means

Section 35 is a penal provision. It applies when the acceptance described in the section is contrary to a requirement or prohibition contained in the FCRA 2010, a rule made under it, or an order made under it. The provision also expressly covers a person who assists another person, political party or organisation in such acceptance.

Meaning of important expressions

Foreign contribution

Section 2(1)(h) of the FCRA defines "foreign contribution" broadly as a donation, delivery or transfer made by a foreign source of an article, currency or foreign security, subject to the statutory terms, explanations and exceptions contained in that definition. The definition should be read from the current Act when deciding whether a particular receipt is regulated as foreign contribution.

Foreign source

Section 2(1)(j) defines "foreign source" by identifying the foreign governments, international agencies subject to statutory exclusions, foreign entities, companies, corporations, trusts, societies, clubs and certain persons from whom a contribution may have the character of a foreign-source contribution. Whether a donor is a "foreign source" depends on the statutory definition applicable to the facts.

Contravention of the Act, Rules or an order

Section 35 is not limited to the wording of one substantive prohibition. Its text links the punishment to acceptance, or assistance in acceptance, that contravenes a provision of the FCRA, the Foreign Contribution (Regulation) Rules, 2011, or an order made under the Act. The underlying provision allegedly violated therefore matters in determining whether Section 35 is attracted.

Punishment under Section 35

The court may impose imprisonment for a term extending up to five years, a fine, or both. The section states the maximum term; it does not prescribe five years as an automatic sentence in every case.

Related FCRA provisions

Section 35 should be read with the surrounding offence and enforcement provisions. Section 34 deals with the penalty for an article, currency or security obtained in contravention of Section 10. Section 36 concerns an additional fine where property liable to confiscation is unavailable. Section 37 provides punishment for offences for which no separate punishment is provided. Section 39 deals with offences by companies, while Section 40 concerns the statutory bar on prosecution except with the previous sanction specified there. Section 41 deals with composition of certain offences.

Practical compliance point

Before accepting or using a foreign contribution, an association or person should verify the applicable FCRA registration or prior-permission requirements, the identity and status of the source, the permitted bank-account route, and any restrictions governing receipt or utilisation. The Ministry of Home Affairs has also stated that receipt or utilisation of foreign contribution without valid FCRA registration can amount to a violation and may attract penal action.

Legal note: This page explains Section 35 in general terms. Criminal liability depends on the precise statutory provision, rule or order allegedly contravened and the facts and evidence of the particular case. The current Act, Rules, notifications and orders should be checked before acting on an FCRA issue.

Last reviewed: 27 September 2026.