 bid' no 7 01 1185  the foreign contribution (regulation) amendment ~1985 , a billto amend the foreign contribution (regulcltion) act, 1976 be it enacted by ~~r1iament in the thirty~fifth v& of ~ republic c>f india as follows:-short title and comrnedce ment 1 (1) this act may be called the foreign contribution (regulation) amendment act, 1985 , s  (z) ·the ,pj'ovialona ot·tb!s act,other thin sectiods 4and 6, sballbe ~ to have ~~ b'ce en, the 20th day of october 19m, and ~ons 4 and 6 shall be deemed to have come into force on the 1st' day of january, 1985 40 of 1976 ~) l,  in section 2 of the foreign contribution (regulation) act, 1976 ]0 (hereinafter referred to as the prjncipaj act), in sub-aeotion (1) r-: amend ment of section 2· (0) in clause (c), the following explcfr4tion shall ~ ~ at  the end, namely:-  - ,_ ' " ,"  " • -" ~ , - ~ : •• __ - t _ •••• t 15 i ,~·~~zp~1uitior~a donation, cwivy of·tranifer ofany article, ~ a" fqr~i&q b~ -«red  to ill :this clauie bst,any ~n  wllo, llfs, recei~itt  fj"cmijg' foreigj), soun:e, either directly or through one or more  pe1'bqjjs, shall also be deemed to be foreign contribution within the meaning of this clause;"; (b) for clauae (g), the following clause _shall be substituted rwmely:-'(g) "polttical party" means-(i) an association or body ~f individual citizens of india-s (1) which is, or is deemed to be, registered with the election commission of india as a political party under the election symbols (reservation and allotment) order, 1968, as in force for the time being; or (2) which has set up candidates for election to any 10 legislature bujt is not so registered or deemed to be registered und~ the e1eation symbols (reservation and allotment) order, 1968; (ii) a political party mentioned in column 1 of table i to the notiftcattion of the election commission of india is no s6/j&ki84, dated the 27th september t~84, as in force for the time being;' amend ment of s«:tion 4 3 in ~on 4 of the principal act, in sul>-bection (1), in clause (c) for the words "government servant", the words "judge, government servant" shall be sub9tltuted 20 amtndmeelt of seotio 6 • in sectjo~ 6 of the principal act for sub-sectioll (1) the following sub~h$, \'~l· be substituted namely:-,  "'(1) no 8i8odatioa r  it oiltm  oa refeft'etl to ht   (1) 01 sedlod 5]  ~ - wbite cujuni ecatomk, educatioiiii 25 rf~ 01' sodal progj_bile ~ accept f~ eoatrnjntion unless !i1idi a«:oriii8_-(a) ~ lise" wiftt the central goenuaent hi icconildfe wilt ~  , iiiider tbis ad;    (b) - , - e ncb foniwn~" oni, ~  one gf die hnlldles of  ,  it iiiby specify in its ~ 30 ~a""""" iijid ~ as~ 50 ~!ii", "tve, wltnn nc' "'"'  hi "th  , ,  to ~ c  clo!er  ~·  -   of eacit  , toai  ·~·h" ·the  ~  35 which"" tile  ht "  ;f~e8ncl'aniclor  ~ ~ the p~ for wille" and die n1det in which suth fore'_' ctmifrlhn8nn '"', by it: proided that ft8ft ~ _od~ oiitaini ,'foreip collfrlbafloa ~ ~ braach· odiei'  tile  ~ of iite -k q~ w1tfch it  40  to neeift fore9i contrfbatfoe or falls to -e -cit  tnt  wifiaia the ~ribed dille or h tile  or at  , int  ,, '"wdtfl·  die'cedfni gg'-''' - , by ndeatitm in tile  gazette, didd·  '  ~·i  not after tn·  of inue or ~~  __  ,"'" ~ wl(jtouf fj(t~ penni-,  " tile cettii got •• i";   " '   ",  - to  the fi)reign cf)n1ribution (regulation) amjliidmliit bill, 1965 p (:j;q be/as 1ntrg duced in idk sabha)" 1 page 1,-against line 9, in the mrginal c~,tat1on,­w !140 of 1-:i7(,y rl&d tl49 of 1976"   2 ps,ee 2, it: ~;;lu rmrgin~l head:1ng to clause'4/--  , 4'''''''''"r !i'-t d ~ f' '-1 ~ j~~",i~n merl 0 sec" 0 6" ;read i~a1rend::tent of  ·section 6 tlr" 4 p ~" -w - age"  ~r+e 2:·~  ~tt !;p~rt~e:ls" ~ nand political" 5· p:-j ge 5, ling 2[',-ii   6 p:lg e 5, line 3";:'-  attj;t 'i'iii d '! m~ "in f! 7 ?agc 1(),,-~  againct line :5, in the mai'gin31 c1tat1on,-"1 s73" n xvi dep'ii; 5 (laj if-y ~ "r,,'41 10 ld ~b lied10a (1) ida), ii ~ is  ~ wita , cea&11u to\'trulll~dt upuer  ~lloo, ace ad)  cojllribllliga 081)' ill_r 0, lbe ,01' per8lmili9a 01  (;eatrai ~o"_i"" ___ p'ft, wilala4iud1i lila'" iii aida  · -  be ~  oaa to die ceatra1 ~ at to   ali lorelp ,,'ciiibibiadoa received by it, die iouice irgid wbicb lad ue ___ id wjuda iii&:b lomp coambufioa " received ad the par- lgr "  tile ___ id wbidl  foreif coatribatioa w8i uiiluied " it n 10 5 in section 9 of the principal act, in the opening portion, for the words "government servant" the words "judge, government servant" sball be substituted amendment of section 9 amendment ot sedion 10 6 in section 10 of the principal act, in clause (b) filr the words and iigure "require any usociation apeciiied in section 6", the words, brackets j 5 and figures '·wltb,out prejudice to the !>rovisions of sub-sectiod (1) of section () require any association specl1ied in that sub-seciioj\" sh8ll be ::i ubs1ituted 1 in section 14of the principal act, for the wor~ and figure "clasa 1 amendpost", at both the places where they occur,·1the words and letter "group ment of 20 a post" shall be substituted section 14 h after section 15 of the principal act, the following section shall be mserted namejy:-insertion of new section 15a 25 30 "lsa where , gi'piiiiatioil 01' allodadoa fails to lumilb dj audit of  tbii ad witbia tile  ~ thenfoi' or tile  10 accounts fal1lillhid are  ill ~ witia law gi' if,  idipeetiga of   , die ciiibl goyenuaeat  y  cae to belime  aay paoywoa at filii act  beea, or is ijcida, coiiiraveded· tbat gov   ,, by  or iipiciai anier,  gueued 08icer, jaoidi  group a par, - it may tbidk fit  to audit ad1 boob of accouii& kepi or  ined by jucb orpaisatiod or aodadoa, - the , 18, lie, aad dleleupoa fjw!i)' sa oi¥:er  _ft die riciit to em ill or  , ,  , re8iobiibie bow, won 11 __ aad alter  ,  die ~ or _  die  boob of aecomat: prorided  y bdondatioia obbiaed froid such audit  he  cf'wit'iwiei _  dot be dllejoaed except for tile ~ of  ad' 35 • after section 25 of the principal act the following section shall he inser1ed, namely:-insertion of new section 2sa 40 "25a notwithstanding anything contained in this act, whoever, having been convicted of any offence under sub-section (1) of section 23· or section 25, in 80 far as such offence relates to the acceptance or utilisation of foreign contribution, is again convicted of such offence shall not accept any foreign contribution for a period of three years from the date of the subsequent conviction" prohibi_ tion of acceptance ot forell"l -trtbution -(:) notwitju;tanding such repeal, anything done or any action taken under the principal ad, as amended by the· said ordinance, shall be 4eemecl to, have been done or taken u"!:ier the principal act, as amended by this j\ct the foreign ,contribution (regulatio~) act 1976, seeks ~ regulate the acceptance and utilisation of foreign contributio~ or f~re1gn hospitality by certain categories of persons or associations to remove certain inadequacies and practical difficulties in the administration of: the act, a bui to amend the act was introduced ,in the,rajya sabha in ),{ay, 19$4-the bill was passed by the rajya sabha wi,th ~ertain amendments but it could not be passed by the loksabha before it adjourned at the end of its monsoon session and the bill has now lapsed as it was comsidered necessary to give effect' to the provisions of the bill as passed by the rajya sabha urgently, ,the foreign con,tribution (regulation) amendment ordinance, 1984, was promulgated ,by the president on the 20th october, 1984,' the saicj ordinance, inter alia made the following amendments in the act, namely:-(i) the definition of "foreign contribution", as contained in the act, included on,ly the donation, delivery or transfer made by any foreign source it did not include donation or contribution received by an organisation from another organisation from out of foreign contribution received by the latter organisation ,the definition was enlarged ,to include such con,tributions also for the purpose of tracing the utilisation of foreign contribution down the line (ii) the definition of "political party", as contained in the act, did not include political parties in the state of jammu and kashmir i cal parties which are not covered by the election ,symbols (reservation and allotment) order, 1968 the orditiahce amended this definition to include such political parties also" ' (iii) section 6(1) of the act provided' that every association having a definite cultural, economic, education, religious or social programmes, may receive foreign contribution, but was required to send intimation tegarding such receiptto the central government within such time and such manner to be prescribed by the rules made under the act it had been observed that a number of associations had not sent such intimation in order to effectively monitor the receipt of foreign contribution, this sub-section was amended to provide that associations referred to therein shall aceept foreign contribution only after they are registered with the central government specifically for the purpose and accept such contributions only through a specified branch of a bank they would, however, be ;required to give, within such time and in such manner as may be prescribed, intimation to the centr~ government as to the amount of foreign contribution received by them, the source from which add the manner in ~hich such foreign conl1;ribution was received by them, etc where any registered association does dot accept foreign contribution through the specified branch of a specified bank or does not submit intimations, etc, in ttme the central government has been empowered to direct that such association shall not, accept foreign contribution withom the prior permission of the central govanmeill, a new sub-section (1a,) )jad aljo boon included in this section 1;() provide that anassociatton not 80 reilbtered with the central government shall obtain prior ~n of the central gov~t defore' accepting lap, foreign contribution ,and also give, intimation to the centnl government  to itbe amowlt of contr1-butionreceitted by it (tv) the act o:ftly enabled the central government to inspect tiiie accounts of certain persons or asaoe1ations it did not provide for 8ny power to audit the account of any organisation if it is coneidf:red neees8eryto do so the ordinance amended the act by in:serting a new section 15a, to take apeclac pow, to audit the account :of certain pelt8ons, organiiations or associaltions, if the preseiibed returns are not furnished in time by such persons, organisations or associations or the returns so furnished by them are not in accordance with law 01 their scrutiny gives room for suspicion that the provisions of the act have been contr4vened (v) a new section 25a hbd also been inserted in the act to prov1de that where any pei-son is convicted of an offence relating to the acceptance or utilisation of foreign contribution for a second time he shall be prohibited :from accepting any foreign contribution fqr a period of three years hom the date of the second conviction 2 tbe bill seeks to replace rthe afot~said ordinance 'nd-dam; the l!jth jtmtl4f'si • 1985 s b chavan " clall8l ~ of the diu which "&epa to subjtitute sub-sectfon" (1) of secti~1l s" qt" timi foret con,trit;tutlon(~tlon) ~ct, 1- ~quires every ap~ "~~s a dr:jidlrc ~,' clikutal, 'educ~~~" religious of social' progr8nun~, inter alia, to 'njgisterits"u with ~e t,ntral ~t:  11ais provj~ion will generate considp~ wor~aaa for tbo~duag of which a4dltloilal s~aft  would be reqtd~:' f~ the, e~· ti~ ~j ct the ~ipt and' intimati?p' of foroip cqilqtbutioa, the toriilg cejl of the miniitty of hotne affairs will bo ~1jit-d ,to be l_aioty • ~ngtbcllld for tire prosecution of cases of defa\jltlbi~ ~tioos, a separateu!1lt in th, cbi will be required to be ei~~ed i;he tojat esdtrat~d e1:pendit~re on the employment 01 s,talf on ti)isac;count is l~ely to be! of uie o~er of rs • 11 ~, ptr annt,un: \ 2 claufe 8 ot the bui, which seeks to inaert a new sectio~ 1la ill the ~ct, enables the central govemment 'to audit any books of ,ccouftt kept or ~ri~jtd by ny organisation or ~lioci~tioll, if such orpnisa-', tion or association fatis "td furnih any, return under tl)e aet wttbtn the tim~ specled; tlieteforor the l'eturni! sa'furnished, are dot in aecordanee wflh law or,' after inspection of s~ch retums,' the cenb'~ (;oyernr4ent· has any reasonable cause to' belle-vet that any provision of the act hu been, or is beine, oontravened such audit will be cqnducted by a ga-~ 0ficer of the  government holding a (3wup: a post this provi~ sion also will involve some expenditure from the consolidated p'udd' of ·india but it 1111 not possible at this stage toi precisely estimate the expenditure on thir account as that would depend on the number of organisations which do not submit returns or whose returns are not in accordance with law and in respect of which government would consl  der that the audit of their accounts is necessary 3 the bill does not involve any" other expenditure of a recurring or non-recurring nature  memorandum regarding delegated legislationclause 4 of the bill seeks to !'ubs1itu~ suh-sectiod (1), of section 6 of the foreign contribution (regulation) act, 19'78, by new ~ (1) and sub-section cia) the dew sub~ction (l), "ter alia, ~mpowers, the central govcl'lullent to specify by rules the manner in which ad association referred to :ili that sub-section shall register itself ~th the cetitral govemment before accepting auy tdreign contrib1jqon ~  said association is also required to give, within such time and in such nuinner as may be prescribed by rules made under the act an intimation to 1he central government as to the amoudtof each foreign contribution received by it, the source from which andtbe manner in which such foreign contribution was received and the pmpose for which and the manner in which such foreign contribution was utilised by it the new sub-section (ia) requires every association referred to in the new sub-section (1) of section 6 of the act which is not registered withtbe central government under that sub-eec:tlon to accept foreign contribution only after obtaining the prior permission of the central govern;' ment and to rive, within such time and iji such manner as may be specified by rules, an intimation to the central govemment regarding the details of the foreign contribution received by it 2 the matters with respect to which rules may be made are matters of administrative detan or procedure the delegation of legfalative power b, therefore~ donnal in character  memorandum explaining the modifications contained in the bill to replace the foreign contribution (regulation) amendment ordinance, 1984apart from replacing the aforesaid ordinance, the bui makes a change in the reference to the notification of the election commission as rontained in new clause (g) (ii) of section 2 of the foreign contributioll (regulation) act (clause 2(b) of the bijlj, to r~er to the new notification which has superseded the earlier notification referred· to in the corresponding provision!'! of the ordinance '1   - - •• de8nitiodi , ,' '   "  •• - (c) "foreign contribution" means ui~ donation, delivery or transfer made by any foreigil source,-:-(i) of any article, not being an article given to a person as a gift for his personal use, if the market value, in india, of such article, on the date of such gift, does not exceed one thouand rupees; (it) of any currency, whether)ridian or foreign; (iii) of any foreign security as defined in clause (i) of hc-tlon 2 of the foreign exchange regulation act, 1973; ~ of 1993    - -  (g) "political party" mean~ an association or body of individual citizens of' india which is, or is deemed to be, registered with the election commission of india as a political party under the election symbols (reservation and allotment) order, 1968 as in force for the time being;   -  - • (1) no foreign contribution shall be accepted by any-  - -  (c) govel'l'lment servant or employee of any corporationj  - - - - candidate for e1ectiod, etc, not to ucept foreiaa ciofttribution: 6 (1) every association [not being an organisation referred to fn sub-section (1) ot section 5] having a definite cultural, economic, educa-,  ,tional, re1i£!!ous or social programme shall give, within such time and in such manner as may be prescribed, an intimation to the central -govemmpnt as to the amount of foreign contribu;tion received by it, th~ source from which and the manner in which such foreign contribution was received and the purposes for which and the manner in which, such foreign contribution was utilised by jt certalll ~­tiona and periionl teeeivini foreild contributionto 8iye intimation to the central goem_ 1'ulnt  t no member of a lelislature, office-bearer of a political party, government servant or employee of any corporation shall, while visiting any country or territcry outside indi~,: atee}1i~~cept with the prior perm issio~ of the central government, any foreign hospitality: restrictions ell acceptall(:e of foreign h!lspitalit)' provided that it shall not be necessary to obtain any such permislion for an emergent medical aid needed on account of sudden illness contracted during a visit outside india, but, where such foreign hos- pitality has been ~ceived, the person receiving such hospitality shall give, within one month from the date of receipt of such hospitality an intimation to the central government as to the receipt of such hollpitality and the s:>urcefrom whjch, and the manner in which, such hospitality w!is received b~ him 18, the central government' '1'ft)y':-- - - - - (b) require any assoc;iation, specified tn seetion 8, to obtain prior permission of the central government befort·aa:eptidl aay foreign coritriblltion; power of central govern_ ment to prohibit receipt of foreign contribution, etc, in certain casee  - ,  - - - if if the central government lajl;for any raason, to be recorded in writing, efly igrpqlld tq, ~p~t that ~ jiil"oy:is1cm o tbjs,act has been, or is bcing~ contravened by-'   in8pectjqn of accounts or records (4) any political party, or (b) any person, rr (e) any organj,satioll or (d) any association, it may, by general or i'jpecial order, authorise such gazetted ofticer, holding a class i "ost, as it" may thin,k fit (h~reinafter referred to a6 the authorised officer), to inspect any account or record maintained by such political party, person organisation or association, as the ·case may be, and thereupon every such auflwrised oftlcer sh~n have the right to enter in or upon any premises at any reasonable hour, before sunset and after sunrise, for the purpose c'f inspecting the said account or record: provided that no gazetted officer shall be authorised to inspeq the account or reco~d maintained by a political party, unless he has been holding a class i post in connection with the affairs of the union, or a state,fol\ ~t less tban ten years ---', a bill to amend the foreign contributiop (regulation) act, 1976 (shrl s b, chavan, minister of h~ afjtjirs) 