Foreign Contribution Bill removes Section 15, adds new Chapter IIIA

This Bill amends the Foreign Contribution (Regulation) Act, 2010 to update references to newer laws (such as the Companies Act, 2013 and Bharatiya Nagarik Suraksha Sanhita, 2023) and to establish a new mechanism for the provisional and permanent vesting of foreign contributions and assets in a 'Designated authority' when certificates are cancelled, surrendered, or cease to exist.

The law affects persons (including companies, firms, trusts, societies, and political parties) who are permitted to accept foreign contributions, as well as the Central Government and the newly defined 'Designated authority' and 'Administrator'.

• Substitutes references to the Code of Criminal Procedure, 1973 with the Bharatiya Nagarik Suraksha Sanhita, 2023.
• Updates references from the Companies Act, 1956 to the Companies Act, 2013.
• Defines 'key functionary' to include directors, partners, trustees, Karta of HUF, and office bearers of societies or associations.
• Extends the validity of a foreign contribution certificate to five years.
• Prohibits the alienation or encumbrance of assets created from foreign contribution without prior Central Government approval.
• Introduces a new Chapter IIIA (Sections 16A-16E) for the vesting of foreign contributions and assets in a 'Designated authority' upon cancellation, surrender, or cessation of the certificate.
• Mandates that if a certificate is not renewed or restored within a prescribed period, the assets permanently vest in the Designated authority for public purposes.
• Allows the Designated authority to sell vested immovable property and issue a certificate of sale that serves as conclusive proof of ownership for the transferee.
• Requires the last key functionaries of a defunct person to inform the Central Government, leading to the permanent vesting of assets in the Designated authority.

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