The Ministry of Home Affairs, through Notification S.O. 3287(E) dated 22 June 2026, has amended the compounding provisions under the Foreign Contribution (Regulation) Act, 2010 by revising entries in the notification dated 1 July 2022. The amendments prescribe updated compounding amounts for specified offences relating to misuse of foreign contributions. These include defraying administrative expenses beyond the permissible 20% limit, engaging in speculative activities with foreign contributions, and utilising foreign contributions for purposes other than those for which they were received. The notification also revises penalties for accepting or utilising foreign contributions in contravention of Section 11 and for using such contributions for purposes or in States or Union Territories not covered by registration. In several cases, the compounding amount is fixed as a percentage of the foreign contribution involved or ₹1 lakh, whichever is higher. The notification applies prospectively and expressly states that cases already disposed of before its publication will not be reopened.
MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 22nd June, 2026
S.O. 3287(E).— In exercise of the powers conferred by sub-section (1) of section 41 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Home Affairs, vide number S.O. 3025(E), dated the 1st July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), namely:—
In the said notification, in the Table,—
(a) for serial number 3 and the entries relating thereto, the following serial number and entries shall be substituted, namely:—
| “(1) | (2) | (3) | (4) |
| 3. | (a) Offence punishable under section 37 for defraying of foreign contribution beyond twenty per cent.of the contribution received for administrative expenses in contravention of section 8 of the Act. |
One lakh rupees or five per cent. of such foreign contribution so defrayed beyond the permissible limit, whichever is higher. | Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act. |
| (b) Offence punishable under section 37 for utilisation of foreign contribution in speculative activities in contravention of section 8(1) of the Act read with rule 4 of the Foreign Contribution (Regulation) Rules, 2011. |
Thirty per cent. of the amount invested in speculative activity or rupees one lakh, whichever is higher; and one hundred per cent. of the returns earned therefrom. |
Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act | |
| (c) Offence punishable under section 37 forutilisation of foreign contribution for purposes other than those for which it was received in contravention of clause (a) of sub- section (1) of section 8 of the Act. |
Thirty per cent. of the amount so utilised for purposes other than the purpose for which such foreign contribution was received or rupees one lakh, whichever is higher. |
Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act.”; |
(b) for serial number 4 and the entries relating thereto, the following serial number and entries shall be substituted, namely:—
| “(1) | (2) | (3) | (4) |
| 4. | (a) Offence punishable under section 35 for accepting [or utilising] foreign contribution in contravention of section 11 of the Act. | One lakh rupees or thirty per cent. of the foreign contribution received [or utilised, as the case may be], whichever is higher. | Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act. |
| (b) Offence punishable under section 35 for violation of section 11 read with rule 9(1B) of the Foreign Contribution (Regulation) Rules, 2011 by utilisation of foreign contribution for a purpose or in a State or Union territory for which registration has not been granted. | Thirty per cent. of the amount for such purpose or in such State or Union territory or rupees one lakh, whichever is higher. | Director, or as the case may be, the Deputy Secretary in-charge of the section responsible for the administration of the Act”. |
2. This notification shall not apply to the cases disposed of before the publication of this notification and no case so disposed of shall be reopened.
[F. No. 11/21022/23(12)/2020-FCRA-II]
GAYA PRASAD, Jt. Secy.
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (ii), vide notification number S.O. 3025(E), dated the 1st July, 2022 and was subsequently amended vide notification number S.O. 778(E), dated the 20th February, 2023.
