Context: The Foreign Contribution (Regulation) Amendment Bill, 2020 has been passed by the Lok Sabha.
- The Bill amends the Foreign Contribution (Regulation) Act, 2010 which regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies.
Prohibition to Accept Foreign Contribution
- Under the Act, certain persons are prohibited to accept any foreign contribution. These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
- The Bill adds public servants (as defined under the Indian Penal Code) to this list.
of Foreign Contribution
- Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution (or has obtained prior permission under the Act to obtain foreign contribution).
- The Bill amends this to prohibit the transfer of foreign contribution to any other person.
- The term ‘person’ under the Act includes an individual, an association, or a registered company.
Aadhaar for Registration
- The Bill adds that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document.
- Reduction in use of foreign contribution for administrative purposes to 20% from 50% earlier.