Section 50 FCRA 2010 - Power to Exempt in Certain Cases

Section 50 of the Foreign Contribution (Regulation) Act, 2010 gives the Central Government a specific power to grant exemptions from the Act when it considers an exemption necessary or expedient in the interests of the general public.

Text of Section 50 of the FCRA 2010

If the Central Government is of opinion that it is necessary or expedient in the interests of the general public so to do, it may, by order and subject to such conditions as may be specified in the order, exempt any person or association or organisation (not being a political party), or any individual (not being a candidate for election) from the operation of all or any of the provisions of this Act and may, as often as may be necessary, revoke or modify such order.

Meaning and Scope of Section 50

The provision is an enabling power. It permits the Central Government to issue an exemption order where the statutory public-interest test is satisfied. An exemption may cover all provisions of the FCRA or only specified provisions, and the Government may attach conditions to the exemption.

Authority: The exemption power is vested in the Central Government.
Public-interest requirement: The Government must form the opinion that the exemption is necessary or expedient in the interests of the general public.
Eligible persons or bodies: The provision can apply to a person, association, organisation or individual, subject to the statutory exclusions.
Excluded categories: A political party cannot be exempted under this section, and an individual who is a candidate for election cannot be exempted under it.
Extent of exemption: The exemption can relate to all or any of the provisions of the FCRA.
Conditions: An exemption may be made subject to conditions stated in the Government's order.
Continuing control: The Central Government may revoke or modify an exemption order whenever necessary.

What Does "Candidate for Election" Mean?

Section 2(1)(d) of the FCRA defines a "candidate for election" as a person who has been duly nominated as a candidate for election to any Legislature. This definition is relevant because Section 50 expressly excludes such an individual from its exemption power.

Example of an Exemption Order Under Section 50

By Order S.O. 459(E) dated 30 January 2020, the Ministry of Home Affairs exercised the power under Section 50 to exempt organisations, other than political parties, that are constituted or established by or under a Central Act, State Act, or specified governmental order, are wholly owned by the respective Government, and are required to have their accounts compulsorily audited by the Comptroller and Auditor General of India or its agencies. The order exempted the covered organisations from all provisions of the FCRA and superseded the earlier 2011 order, subject to the saving stated in the 2020 order.

Practical point: Section 50 does not itself create an automatic exemption for an organisation. The exemption depends on a Central Government order and must be read according to the persons or organisations covered, the provisions exempted and any conditions stated in that order.

Official FCRA Resources

For the current statutory text, notifications and online FCRA services, refer to the official Government sources below.

India Code - Foreign Contribution (Regulation) Act, 2010 Ministry of Home Affairs - S.O. 459(E), 30 January 2020 Ministry of Home Affairs - Foreigners-II Division (FCRA) FCRA Online Services - Ministry of Home Affairs