The government has prohibited any political or semi political organisation and any company or association engaged in the production and broadcast of audio or audio visual news or current affairs programmes from accepting foreign contributions.
Under the amended Foreign Contribution (Regulation) Act, 2010, which has come into effect from 1 May 2011, the government has also barred the transfer of funds from one person or organisation to another person or organisation unless such person or organisation is equally eligible under rules to accept foreign donations.
The receiver of the donations must also ensure that foreign contributions are utilised for the purpose for which they have been given.
However, the government has allowed expenditure of up to 50 per cent of such funds on administrative purposes. Any increase in the administrative expenses should be defrayed with the prior approval of the central government.
The amended rules also provide for suspension as well as cancellation of registration granted to such persons or organisations for violation of the provisions of the Act.
Provision has also been made for management of foreign contribution and assets created out of the contribution of persons whose certificates of registration have been cancelled.