Subject NOT available

click here for IIIF manifest

REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 4] NEW DELHI, TUESDAY, JANUARY 6,1976/PAUSA 16, 1897

Separate paging is given to this Part in order that it may be filed as a separate compilation.

RAJYA SABHA

The following Report of the Joint Committee of the Houses on the Bill to regulate the acceptance and utilisation of foreign contribution or hospitality by certain persons or associations, and for matters connected therewith or incidental thereto, was presented to the Rajya Sabha on Tuesday, the 6th January, 1976:--

COMPOSITION OF THE JOINT COMMITTEE

Shri Manubhai Shah—Chairman

MEMBERS

Rajya Sabha

2. Shri D. D. Puri

3. Shri Chakrapani Shukla

4. Shri Gulabrao, Patil

5. Shri Kali Mukherjee

6. Shri Harsh Deo Malaviya

7. Shri Ganesh Lal Mali

8. Shrimati Pratibha Singh

9. Shri Kasim Ali Abid

10. Shri Emonsing M. Sangma

11. Shri Shamlal Gupta

12. Shri Omprakash Tyagi

(131)

*13. Shri Kalyan Roy

14. Shri S. S. Mariswamy

15. Shri Sitaram Singh

16. Shri D. Y. Pawar

17. Shri Abu Abraham

**18. Shri Vishwanatha Menon

19. Shri Bhupinder Singh

***20. Shri Om Mehta

Lok Sabha

21. Shri R. Balakrishna Pjllai

22. Shrimati Mukul Banerji

23. Shri Bashweshwar Na.h Bhargava

24. Shri Chapalendu Bhattacharyyia

25. Shri Jyotirmoy Bosu

@26. Shri Ramachandran Kadannappalli

27. Shri C. K. Chandrappan 28. Shri Dharnidhar Das 29. Shri P. K. Deo 30. Shrimati Marj one Godfrey 31. Shri J. Matha Gowder 32. Shri Samar Guha 33. Shri J. G. Kadam 34. Shri Kinder Lal 35. Kumari Kamla Kumari

@@36. Shri Jharkhandc Rai 37. Shri Mallikarjun 38. Shri Krishnan Manoharan 39. Shri Shyamnandan Mishra 40. Shri F. H. Mohsin 41. Shri Samar Mukhenpe 42. Shri Narsingh Narain Pandey 43. Shri S. T. Pandit 44. Shri P. Parthasarthy 45. Shri Arvind M. Patel 46. Shri Krishnarao Patil 47. Shri S. Radhakrishnan 48. Shri Ram Dhan

•Ceased to be member of 1ho Committee consequent on retirement from the membership of the Raiva Sabha on the Oth July, 107¹") Re-anpomted on the 30th July, 1975, on being re-elected as a member of the Rajya Sabha.

* "Appointed on 11-5-1974 vice Shri K. P. Subramania Menon retired from the membership of the Rajya Srbha on 2-4-1974.

•••Appointed on 9-12-1974 vice Shri Ram Niwas Mirdha resigned on 22-11-1974.

(^Appointed on 17-12-1974 vice Sardar Bnta Singh resigned on 11-11-1974.

<3>( SEC. 2] THE GAZETTE OF INDIA EXTRAORDINAkV 133

49. Shri Ram Singh Bhai 50. Shrimati B. Radhabal Ananda Rao 51. Shri Jagannath Rao 52. Shri timed Singh Rathia 53. Shri Mulki Raj Saini 54. Shri S. C. Samanta 55. Shri M.. R. Sharma 56. Shri Nuggehalli Shivappa 57. Shri Hari Kishqre Singh 58. Shri Sant Bux^Sintrh 59. Shri Atal Bihari Vajpayee 60. Shri Virbhadra Singh

REPRESENTATIVES OF TUB MINISTRIES

Ministry of Law and Justice

1. Shri S. K. Maitra—Joint Secretary and Legislative Counsel. 2. Shri V. S. Bhashyam—Additional Legislative Council.

Ministry of Home Affairs

1. Shri C. V. Narasimhan—Joint Secretary.

2. Shri A. C. Sen—Deputy Secretary.

SECRETARIAT

1. Shri S. P. Ganguly—Additional Secretary. 2. Shri M. K. Jain—Chief- Legislative Committee Officer. 3. Shri R. K, Mazumder—Senior Legislative Committee Officer.

REPORT OF THE JOINT COMMITTEE

I, the Chairman of the Joint Committee to which the Bill* to regulate the acceptance and utilisation of foreign contribution or hospitality by certain persons or associations, and for matters connected therewith or incidental thereto, was referred, having been authorised by the Joint Committee to submit the Report on its behalf, present this Report of the Committee, with the Bill, as amended by the Committee, annexed thereto,

2 The Bill was introduced in the Rajya Sabha on the 24th December, 1973. The motion for reference of the Bill to a; Joint Committee of the Houses was moved by Shri Ram Niwas Miirdha, the then Minister of State in, the Ministry of Home Affairs and in the Department of Personnel on the 19th February, 1974, and was adopted by the House on the same day.

3. The Lok Sabha concurred in the motion on the 25th March, 1974.

4. The Message from the Lok Sabha was reported to the Rajya Sabha on the 25th March, 1974.

5. The Committee held 33 sittings in all. Of these four sittings each were held at Bombay (27th, 28th, 29th June and 1st July, 1974). Calcutta (16th, 17th, 18th and 19th September, 1974), Madras (7th, 8th, 9th and 10th October, 1974) and one sitting at Shillong (21st September, 1974), with the permission of the Chairman, Rajya Sabha, to hear oral evidence from, witnesses.

6. At its first sitting held on the 10th April, 1974, the Committee decided that a Press Communique be issued inviting opinions from various individuals, associations, organisations, political parties and public bodies interested in the subject matter of the Bill and advising them to send their memoranda thereon to the Rajya Sabha Secretariat by the 15th May, 1974, which date was subsequently extended upto the 20th June, 1974. The Committee also decided to call witnesses for Riving oral evi- dence on the; Bill and authorised the Chairman to decide, after examining all the memoranda, as to who might be invited for the purpose. The Chairman also requested Members to suggest names ofj persons Or associa- tions, etc. whom they would like to be invited to give oral evidence be- fore the Committee. Besides this, the Committee decided that the follow- ing be approached for giving their views on the Bill, namely: —

(i) State Governments (ii) State Bar Councils and High Court Bar Associations

(iii) Recognised Political Parties and Registered Trade Unions (iv) Attorney-General and Solicitor-General (v) Advocates-General of States (vi) Universities in India (Law Faculties)

(vii) Academic Institutions like Indian Law Institute, New Delhi, Institute of Constitutional and Parliamentary Studies, New Delhi, Laski Institute at Ahmedabad, Gokhale School of Economics and Political Science at Poona, etc.

•Published In Part II, Section 2 of the Gazette of India Extraordinary, dated the 24th December, 1973.

7. To facilitate the work of the Committee, a questionnaire was issued.

8. Sixty-one memoranda containing views, comments, suggestions and replies to the questionnaire on the Bill were received by the Committee from various individuals, associations, etc.

9. The Committee heard the evidence tendered by Eighty-four wit- nesses.

10. The Committee decided that the whole of the oral evidence tender- ed before it should be laid on the Table in both Houses.

U. The Report of the Committee was to be presented to the House by the last day of the first week of the Eighty-eighth Session of the Rajya Sabha. The Committee was, however, granted extension of time, first upto the last day of the Ninetieth Session, then up to the last day of the Ninety-third Session, and then again, upto the last day of the first week of the Ninety-fourth Session of the Rajya Sabha.

12, The Committee considered and adopted the Draft Report at its sitting held on the 4th October, 1975.

13. The principal changes suggested by the Committee in the Bill and the reasons therefor are set out in the succeeding paragraphs of this Report: —

Clause 2

Sub-clause (1)—Paragraph (b).—The definition of the expression "candidate for election" has been amplified to bring it in line with the latest definition of that expression contained in section 79 of the Repre- sentation of the People Act, 1951 (43 of 1951) and in section 171A(a) of the Indian Penal Code.

Paragraph (c).—Gifts for personal use of the value of more than Ra. 5,00O|- were excluded from the definition of "foreign contribution". The Committee feels that this exemption limit is too high. The Com- mittee has, therefore, reduced it to Rs. 1,0001-. This paragraph has also been enlarged to include therein foreign security as defined in the Foreign Exchange Regulation Act, 1973.

Paragraph (e).—The Committee considered in detail the question whether multinational corporations which have, of late, sprung up and are operating in many countries should be specifically brought within the purview of the proposed legislation. The Committee was of the view that the definition of the expression "foreign source" was wide enough to cover such corporations also. However, for the removal of any doubt and to make th© intention clear, the Committee has specified "multi- national corporation" in sub-paragraphs (iii) and (v) of this paragraph.

Further, the definition of the expression "foreign source", as it stood in the Bill, did not appear to cover Indian companies which were actual- ly controlled by the foreigners. A new sub-paragraph (vi) has, therefore, been added by the Committee to, bring within the ambit of the Bill, com- panies which are Indian companies for the purpose of the Companies Act but which are controlled by foreigners—whether Governments, foreign individuals or societies or trusts or corporations, etc.

The amendment made in sub-paragraph (vii) is of a clarlficatory nature and has been carried out since in some foreign countries a trade union might not be required to be registered.

Original sub-paragraph (vi) referred to a foundation. The intention was that such a foundation should be of a foreign country. This has been made clear by inserting the word "foreign" before the word "foundation" in re-numbered sub-paragraph (viii).

Paragraph (f).—The Committee is of opinion that the provisions of the Bill should be made applicable also to candidates for election to municipal corporations in metropolitan areas, District Councils in the North-Eastern States and Territories and any other elective body which may be notified by the. Central Government from time to time. The definition of the word "Legislature" has accordingly been modified.

Paragraph (j)—[originaV].—As the expression "resident in India" already stands denned in the Foreign Exchange Regulation Act, 1973, the definition of that expression proposed in the Bill has been omitted.

Explanation (New).—A new Explanation has been added to the sub- clause as a sequel to the Committee's proposal to specifically bring with- in the purview of the Bill "multi-national corporations".

The other changes made in the clause are of a drafting or clarificatory

nature.

Clause 4

Sub-clause (1).—The Committee is of opinion that the cartoonists and owners of newspapers should also be included in the category of persons who are absolutely prohibited from accepting any foreign contribution. The sub-clause has, accordingly, been amended. A new explanation has also been added to the sub-clause clarifying the intention that Paragraph (c) Is Intended to cover only employees of corporations owned or control- led by Government.

Sub-clause (2).—Sub-clause (1) of the clause prohibits the'persons listed therein from accepting foreign contribution. The Committee feels that the same prohibition should also apply in the case of persons receiv- ing the contribution on behalf of such listed persons or organizations, The Committee has, therefore, substituted, in paragraph (a) of sub- clause (2), the words "currency from a foreign source", for the words "foreign currency" so that Indian currency received from a foreign source may fall within the ambit of the prohibition.

Paragraph (b) of sub-clause (2), as originally proposed in the Bill, had sought to prohibit delivery of jorteign currency by any person resident in India to a person of Indian origin, if he knew that such person intended or was likely to deliver such currency to any political party, organization, etc. The Committee feels that it is not necessary to restrict the provision of the clause to delivery of "foreign currency" alone which in any case would attract the provisions of the Foreign Exchange Regulation Act, 1973, and to "persons of Indian origin" only. A foreign remittance can be converted into Indian currency and such currency may pass on to a political party, etc. through any person, whether of Indian origin or a

non-Indian. The Committee has, therefore, suitably amended paragraph (b) of sub-clause (2) for the purpose of prohibit ng delivery of any cur- rency, whether Indian or foreign.

Sub-clause (3) [new'] .—Under clauses 4 and 5 of the Bill restrictions have been imposed on persons receiving currency from foreign source on behalf of political parties or organizations, etc. in the matter of de- ltVery of such currency. Clause 6, as originally proposed, did not, however, put such parallel restrictions on persons receiving such cur- rency on behalf of cultural, educational, economic, social or religious, organizations. The Committee is, therefore, of opinion that the clause should be enlarged to cover even those persons who receive foreign contribution either on behalf of such an association or who having re- ceived it on their own, pass it on to such an association. A new sub- clause has, therefore, been added.

Clause 5

The clause prohibits an 'organisation of political nature' from ac- cepting any foreign contribution without the prior permission of the Central Government. While sub-clause (1) of the clause contains the words 'except with the prior permission of the Central Government', sub-clause (2), as originally proposed, did not contain these words. This omission has since been made good by the Committee.

The Bill does not define the expression 'organisation of a political nature'. The Committee is of opinion that some precise and definite criteria should be laid down in the Act to determine which organisa- tions come under the description 'organisation of a political nature'. Accordingly, a new Explanation laying down the guide-lines to be fol- lowed, has been inserted in .sub-clause (1) of the clause. Further, a provision has been included in clause 21 to the effect that any organi- sation aggrieved by a notification declaring it as an organisation of a political nature under the provision contained in the Explanation would have a right to prefer an appeal to the High Court concerned against the decision of the Government.

Clause 6

Sub-clause (2) [new~\.—The Committee is of opinion that a candi- date for election who had received any foreign contribution at any time within one hundred and eighty days immediately preceding the date on which he is duly nominated as such candidate should give an intimation to the Central Government as to the amount received by him, the source from which and the manner in which such amount was received and the purpose for which and the manner in which such amount was utilised. The new sub-clause is intended to achieve this purpose.

Clause 7

The Committee is of opinion that a suitable limit should be pres- cribed for the annual value of scholarship, stipend and payment of a like nature that may be received from a foreign source by a citizen without any restriction and the cases in which that limit is exceeded need only be required to be reported to the Government. The Com- mittee has accordingly proposed a new sub-clause to the clause leaving

it to the Central Government to prescribe by rules the limit upto which scholarship and stipend can be received by a citizen without giving any intimation to the Government.

Clause 8

The amendments made in the clause are intended to provide the

following, namely: —

(i) payments received in connection with international trade¹ or commerce should be excluded from the purview of the prohi- bitive clause 4;

(ii) no prior permission of the Central Government should be required for receiving foreign contribution, by a person spe- cified in clause 4, from his relative provided that the amount of such contribution does not exceed eight thousand rupees per annum and an intimation of the amount received, the source from which and the manner in which it was received and the purpose and manner of its utilization is furnished by him to the Central Government;

(iii) transactions made through official channels, such as, post offices, authorised dealers in foreign exchange etc. are exempted under this clause; and the proviso to clause 12 which corresponds to such provision has been omitted; and

(iv) the term "relative" has been sd denned as td have the meaning

assigned to it in the Companies Act, 1956.

Clause 9

The clause imposes restrictions on the acceptance of foreign hospita- lity by members of a legislature, office-bearers of a political party etc., without the prior permission of the Central Government. In emergent cases like sudden illness contracted during visit abroad, it will not be possible to obtain such prior permission before accepting the hospitality that might be received. Thd Committee, therefore, feels that in such an eventuality it will suffice if instead of prior permission, only an intima- tion of the receipt, source and manner of such hospitality is given by the person within a month of its receipt. A proviso has beeh added to the clause for the purpose.

Clause 10

Sub-clause (a) of the clause as originally proposed excluded the asso- ciations specified in clause 6 from the purview of the* sub-clause as a result of which the Central Government could not prohibit those cul- tural, educational and religious associations from accepting any foreign contribution even in the circumstances specified in the proviso to the clause. That position, in the opinion of the Committee, is not satisfac- tory as the Committee feels, that there might be an occasion whfn such an association in the guisd of social or cultural or religious pursuit might be indulging in activities prejudicial to the interest of the country. The Committee has, therefore, omitted the words and figure "or section 6" occurring in the sub-clause, thereby enabling the Central Government to prohibit such associations from accepting any foreign contribution when the circumstances so demand.

Clause 11

The Committee is of opinion that there should be a time-limit within which the Government should take a decision on an application for the grant of permission to accept a foreign contribution or foreign hospita- lity. Ordinarily a period of ninety days within which, an application for such a permission must be disposed of, should, in the opinion of the Com- mittee, suffice. If, however, the application is not disposed of within thai period, the Committee has stipulated that an applicant should presume that the permission asked for has been granted. There may, however, be complicated cases lor which Government may require some more time to decide upon the¹ application. For such a case, the Committee feels, the Government may take a further period of 30 days, provided that the applicant is informed beforehand of the special reasons lor delaying the decision beyond the prescribed period. A new sub-clause has, Iherefore, been added to the clause.

Clause 12

As stated earlier, the Committee is of opinion that the proper place for insertion of the matter contained in the proviso to this clause is clause 8 of the Bill. The Committee has, accordingly, omitted the proviso.

Clause 14

According to the clause as originally proposed any gazetted officer could be authorised to inspect an account or record of (a) a political party, (b) a petrson, (c) an organization, or (d) an association. As this is an important power which should be exercised with utmost care and responsibility, the Committee is of opinion that the Central Government when it has reason to suspect that any contravention of the provisions of law has. been, or is being, made .should record such reasons in writing before it confers the power of inspection of any account or record on any officer under the clause. Further, the gazetted officer who would be authorized to inspect such an account or refcord of a political party should be a class I gazetted officer of not less than 10 years' standing as such class I officer, and in the case of inspection of such documents and accounts pertaining to others, he should be atleast a class I officer. The Committefe has made necessary changes in the clause accordingly.

Clause 15

The Committee feels that the time-limit of three months prescribed in the clause for initiation of a court proceeding for contravention of any of the provisiona of the law is too short. The Committde has, therefore, increased that limit to six months.

Clause 16

The amendment made in the clause specifies the value of the article

for the purpose of Exercising power of seizure under the clause.

Clause 18

The Committee is of opinion that any article or currency seized should not be automatically liable to confiscation. Since the article oii currency seized will be a matter to be judged in adjudication under clause 19,

confiscation of such a material would take place only under the orders of the court. The Committee has amended the clause to make the in- tention clear.

Clause 19

The clause had originally proposed 'District Court' as the Court which should adjudicate upon unlimited seizures under sub-clause (a). The Committee is of opinion that since the violation of provision^ of the legis- lation will be a criminal offence-, the appropriate court for adjudication upon such unlimited seizures should be the Court of Session. Necessary amendment has accordingly been made in the clause.

Clause 21

Aa already explained under clause 5, a notification issued under the Explanation thereto has been made appealable. Further, in the opinion of the Committee, the appropriate forum for appeals specified in sub- cluase (2) of the' clause should be a High Court and not the Supreme Court, as had originally been provided. Necessary amendments have accordingly been made in the clause.

Clause 24

The re-drafting of the clause is of a clarificatory nature.

Clause 25 (Original)

The clause as originally proposed, had provided for penalty for sale or commercial use of any article received from a foreign source for personal use, without the prior permission of the Central Government The Committee is of opinion that there would be practical difficulty in en- forcing such a provision. The Committee also feels that the provision proposed might be a source of harassment of an innocent citizen. Fur- ther, in view of the reduction of the value of the article which may be received from a foreign source, the Committee f^els that the restrictions against transfer are no longer necessary. The Committee, has, therefore, deleted the clause.

Clause 25 (Original Clause 20)

The Committee has specified one thousand rupees as the limit of fine which may be imposed for contravention of any provisions of the Act for which separate penalty has not beetn prescribed.

Clause 28 (Original Clause 29)

The amendment made in the clause is of a clarificatory nature.

Clause 31 (Original Clause 32)

The Committee feels that keeping in view the objective of the pro- posed regulatory legislation, a candidate for election to a legislature should in no case be exempted from the operation of the law and he should be required to intimate the amount of foreign contribution re- ceived by him. The amendment made in the clause¹ clarifies this position.

Clause 1

Sub-clause (2).—Sub-clause (2)(b) has been amended to make it clear that the provisions of the Bill also apply to branches of companies or bodied corporate, registered or incorporated in India.

Long Title

The Committee is of opinion that the Long Title of the Bill does not adequately reflect the purposes of the proposed legislation. The Com- mittee has, therefore, enlarged the Long Title to indicate the purpose of the regulatory legislation.

14. The other changes made in the Bill are of a consequential or drafting nature.

15. The Committee recommends that the Bill, as ameinded, be passed.

NEW DELHI; MANUBHAI SHAH,

October 4, 1975. Chairman, Joint Committee.

MINUTES OF DISSENT

I

II

Though 1 am grateful to the Joint Select Committee for having accepted many of my amendments, the Bill, as if nas emerged from the Joint Select Committee, has completely belied our expectations and de- feats the very purpose of the: Bill as introduced. There the statement of objects and the reasons expressed concern about the unregulated receipt of funds from foreign agencies and wanted to regulate this, consistent with the values of a Sovereign Democratic Republic.

No Citizen of this country wants that foreign money should vitiate the body politic of this country. At the same time, occasional hospitality or remittance from a relation in a foreign country, etc. are genuine cases of inflow of foreign money.

The Bill, as reported by the Joint Committee, gives blanket power to the Government to decide such iniiow of foreign money. Pldas have been made by some Political Parties that contribution to "The Soli- darity Fund of the Workmen" and 'Friendship Organisations" should continue from foreign sources. As we know. Political Parties have their Trade Union wings which in name may be separate organisations but are aimiated to the parent Political Parties. I doubt, if there are watertight compartments in the' Political Parties for not transferring the Trade Union Funds for political work. I believe, the major source of income of some Political Parties is their Trade Union funds. So I am strongly opposed to any idea of receiving contribution by the Trade Unions in the name! of solidarity or friendship. But I am sorry to point out that the Government have acquiesced in the acceptance of foreign contribution by the Trade Unions for their solidarity funds. So instead of regulating foreign contributions this Bill regularises acceptance of such foreign contributions. Foreign patronage to Political Parties comes in various ways like giving advertisement in Souvenirs and Newspapers, placing large orders for printing in their Presses, insisting in the selec- tion of monopoly Companies for export of indigenous items at the time of Trade Agreements etc. Political Parties and other Associations are to function in a manner consistent with the values of a Sovereign De- mocratic Republic. This being the criteria, I suggest that the Central Government should constitute a Tribunal consisting of the Lokpal when the Lokpal and Lokayukt Act is enacted and comes into force. Till such time', a Sitting Judge of the Supreme Court should be appointed by the President in consultation with the Chief Justice of India. Political Parties come and go. Govrenment changes every five years. So to leave a discretion, to the Party in power to decide! about the acceptance of foreign contribution will not be proper. The institution of a Tribunal to decide this question impartially will make the foundation of our De- mocratic Edifice stronger.

After the latest amendment of the ''Representation of the People Act" no challenge lies in Court to the election of the President, the Vice President, the Speaker and thd Prime Minister. But I feel that in a Bill

of this n a t u r e, t he definition of candidate u n d er Clause (2) of t he Bill should also include¹ a candidate for election for the post of the President, the Vice President, the Speaker and the Prime Minister.

p K> D EO NEW DELHI; October 26, 1975

DX

We do not agree with the Report of the majority in the Committee and consider that the Bill as amended by them does not go deeper into the real cauyes of penetration of foreign money in India. We, therefore, sub- mit our note of dissent.

The Report does not do justice to the voluminous evidence tendered before the Committee which is serious enough to cause concern about the dangerous role the' foreign money is playing inside India causing serious threat to sovereignty of our country.

The original draft of the Bill and the amendments proposed by the majority oi the Joint Committee do not touch even the fringe of the problem. Instead of hitting the real culprits it will only be a source of harassment to some innocent persons.

While introducing the Bill in Parliament on the 24th December, 1973 the then Home Minister, Shri Uma Shankar Dikshit stated, "There has been widespread concern about the unregulated receipt of funds from foreign agencies by individuals and organisations in the country". The present Bill only seeks to regulate the\ acceptance and utilisation of foreign contributions or hospitality through official machinery. However, while doing this the Bill totally ignores the fact that the Indian Government is highly dependent on heavy doles of "foreign aid" and not a single major project gets a final shape unless the Committee "aid" comes in. For such a Government to talk of sovereignty appears to be ernpty. The hundreds of collaboration agreements signed with foreign monopolists and multi-national co-operations by Indian businessmen and approved by the Government have been a main, source of penetration of foreign money in Indian social life. So long these features continue to dominate economic policies it is futile to talk of curbing the malaise- created by ill-gotten foreign money.

As in the case of black money the foreign money also has. created a special field of its activity. No law will be able to stop its operation when major channels of foreign money are given free reign to have their sway in the economy.

Foreign vested interests who invest hundreds of Crores of rupees in India have a vital stake in the social system here. They, therefore, use the power of money to influence the public opinion here.to protect their fortune. Various agencies have already been created under the garb of religious philanthropic and social organisations through whom they are in a position to channelise the foreign funds; The Bill only gives a legal. cover to these activities but their detrimental role will continue to play havoc with the national interests.

The Bill gaves wide powers to the Government to permit organisations to receive foreign money. The fusion between the executive authorities and the ruling party is so close today that the Executive authorities will

permit obtaining of foreign money by all the; organisations which politi- cally are friendly with the ruling party. Thus in practice the flow of foreign money will be regulated only through the Pro-Government orga- nisations. The matters, therefore, instead of improving will be further worsening.

We consider that the solidarity funds received by workers during their strike struggles are just and should be freely permitted. Recently, however, the Government did not allow some solidarity fund remitted through a foreign bank by some fraternal trade union organisations during the All India Railway Strike. The BUI will give arbitrary powers to bureaucracy to deprive legitimate sections of the society of genuine solidarity funds from abroad but permit foreign funds; for causes detri- mental to national interests.

We have seen during the recent past that the Democratic Trade Unions are not allowed to receive solidarity funds from organisations from other countries. However, certain pro-Governmeni Trade Unions are allowed huge funds to run the entire central apparatus. Foreign hospitality in the name of delegations has also reached scandalous proportions. The; Bill will only regularise these mal-practlces while the bureaucracy will continue to give them patronage. Thus, such Trade Unions will openly work to implement the foreign policy requirements of certain countries They will be! allowed to operate with official patronage on the plea that those countries also support the Government of India.

The corruption is rampant in bureaucracy and official circles. This is big asset to foreign powers and their missions in India. It is the same bureaucracy that would be entrusted with the task of implementing this legislation. It would only add to one more source of income for the bureaucrats many of whom have already established secret links with foreign missions. A recent disclosure of the PIB official giving secret to foreign intelligence should not be considered as an isolated instance. Many more hidden agents are prevalent but the Government fails to take action against them.

We hope, the Parliament will give serious consideration to our views and take drastic steps so that the dangerous consequences of the flow of secret foreign funds for purposes detrimental to the national interests is stopped forthwith.

NEW DEJLHI;

SAMAR MUKHERJEE

November 4, 1975 V. VISHWANATHA MENON

rv

The western imperialist countries have never been reconciled to the liberation of their colonies and the attempts of the Third World countries to come closer and develop independent economy free from foreign con- trol and domination. Since independence, some of thel Western countries, mainly U.S.A., have been persistently and continuously trying to subvert economy of these countries as well as political sovereignty and disrupt territorial integrity. As 18th and 19th century methods did not work and

the socialist world gave firm support to the Third World countries and helped them tp stand on their own feet, the imperialist powers changed their tactics and methods—but the aim remained the same—to destroy democratic forms of government, to set up puppet regimes, to disrupt growing friendly relations with the socialist countries, to strengthen the grip of multi-national companies and keep these countries for ever as under developed, hopelessly tied to the U.S.A. and western capitalist economic system.

When open supply- of arms, etc. have been found difficult to topple democratic regimes, mainly in Asia, Africa and Latin American countries, the other method wh,ich is being mainly used is remittance of huge money to those forces and groups and elements who are for the (preservation of old socio-economic structure and against any fundamental changes in the society. This foreign money has been extensively utilised to corrupt the body-politic of these countries. Armed with this huge amount of foreign money, these reactionary groups have been able to topple demo- cratic governments, halt nationalisation of country's resources from monopoly control and exploitation and set up fascist! regimes in various parts of the Third World and outside. This foreign money is being con- sistently useti to corrupt the press, bribe the legislators and officers and carry on most vicious propaganda against economic reforms in socialist countries.

Many were slow to Understand the depth and dimension of the most dangerous, activities of the CIA, and some other western Intelligence organisations and their clandestine activities in various countries, and the massive financial support they gave- to rightwing and extreme left and dogmatic parties, groups and individuals and sections of .the press. All kinds of associations were formed and supported by) finance from abroad with the avowed aim to create troubles of various kinds in the Third World countries and States which had been trying to de velop their economy in non-capitalist way. The recent revelations in the course of investigation of the CIA activities and publication of various reports in press and books have brought into light their shady and sordid activities in Third World countries. In the Course of seriSs of meetings of the Foreign Contribution (Regulation) Bill, several members quoted extensively from various books and documents regarding CIA and the activities of the multi-national corporations.

The closest ally of the CIA is multi-national companies which use various means to corrupt and subvert the independence and territorial inteprity and economy of the countries where they operate. With tremendous financial power at their command and their firm grip over raw materials and minerals and other resources of the Third World countries, they are continuously trying to maintain their hold through massive financial support to antidemocratic elements and have become State's within States. Under cover of trade and business, they attempt to infiltrate into every layer of societv and resort to every possible means including financial assistance to influence the politics of the countries where they operate. They are the bigpest sinple menace to indeoendenw and democratic forms of government which are trying to delink themselves! from the stranglehold 6f colonial economy,

Stic, i] tM 6A£grrM of* INDIA fixtkAokoiKAkV t49

The Foreign Contribution (Regulation) Bill, 1973, as it has emerged out of the Joint Committee, will not be able to tackle or cbhtrol of prevent the inflow of foreign money for dubious and shady and outright anti- national activities. While the multi-national corporations \have been mentioned, no stress has been given on their activities and they will be free to evade and sabotage the various provisions of the Bill. There should be most stringent provisions for them. And this Bill is totally inadequate to deal with them.

Secondly, Trade Unions have been most unnecessarily brought within the purview of the Bill. Already Trade Unionists who go abroad to atte/nd trade union meetings or for medical treatment, etc. are subjected to all kinds of harassment. Similar is the fate of peasant organisations and other anti-imperialist organisations and associations. As these orga- nisations have very little resources or finance or influence over the bureaucrats, their travel abroad have become extremely difficult and time-consuming. This Bill will put further restrictions and obstacles and give more scope to bureaucrats to deny them even opportunities to go abroad for medical treatment.

Thirdly, the) Bill will put insurmountable restrictions on the Trade Unions and mass organisations of our country to receive solidarity help from the working class of other countries. Trade Unions are not yet absolutely free in our country. There are all kinds of restrictions on them. They are subjected to continuous attacks from the employers and state machinery and bureaucrats and low wages of the workers of our country make it immensely difficult for the Trade Unions to build up huge finan- cial reserve ins-a-vis powerful employers who are absolutely free to receive all kinds of financial assistance from the public financial institu- tions as well as from abroad. The transfer of capital from one country 'to other is a fundamental and permanent feature of the world capitalistic system. Monopoly houses and multi-national corporations always trans- fer their capital to help their organisations and concerns in various forma and manners which in many cases are utilised to subvert sovereignty and independence of developing countries as well as to crush and suppress working class organisations and their struggle against exploitation. This Bill does not touch this aspect at all. While capitalists will be free to import capital and receive massive financial assistance from abroad, work- ing class and peasant organisations will be virtually debarred to receive any financial help from their brother working class organisations. Victims of mine disasters and victims of vicious offensive" of the employers will now be denied financial assistance and support from working class and other organisations from abroad. Even there are provisions in the Bill which may be utilised to prevent trade unionists and other mass organisation workers to go abroad for necessary medical treatment which either they are unable to afford in our country or just not available.

Further, it will give sweeping power to the party in power and bureaucrats to harass political parties, various organisations and even citizens with an ulterior motive; The suggestion to set up a review com- mittee was not acceptable to the government, which is ominous. Various witnesses who appeared before the Committee expressed deep and grave

concern regarding concentration of so much power (inspection etc.) on the government officers which as our past experience shows is bound to be misused.

Finally, this kind of Bill will not be able to either stop or curb the inflow of foreign money and contributions for political and subversive purposes. It will only drive it further underground and multi-national corporations, monopoly houses and western Intelligence Agencies and CIA will have no difficulty to finance and assist organisations and asso- ciations and individuals to undermine and subvert our parliamentary Institutions and sabotage our independent economic growth. So this Bill, as it is, should be scrapped and rejected.

KALYAN ROY

C. K. CHANDRAPPAN

NEW DELHI;

JHARKHANDE RAI

November 5, 1975.

BILL NO. XLIV-B OF 1&73

THE FOREIGN CONTRIBUTION (REGULATION) BILL, 1973

( As REPORTED BY THE JOINT COMMITTEE)

[Words underlined or side-lined indicate the amendments suggested by the Committee; asterisks indicate omissions.}

A

BILL

to regulate the acceptance and utilisation oj foreign contribution or foreign

hospitality by certain persons or associations, with a view to ensuring

that parliamentary institutions, political associations and academic

and other voluntary organisations as well as individuals working in

the important areas of national life may function in a manner consis-

tent with the values of a sovereign democratic republic, and for

matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows : —

CHAPTER I

PRELIMINARY

1. (1) Thin Act may be! called the Foreign Contribution (Regulation) Short title, extent, Act, 1975. **jn ** (2)i It extends to the whole of India, and it shall also apply to— aPPu~ cation a na (o) citizens of India outside India; and (b) associates, branches or subsidiaries, outside India, of com- com*

^ ^ _ ^ ^H mence- panies or bodies corporate, registered or incorporated in India. ment,

(3) It shall come into iorce on such date as the Central Government m a v> by notification in the ofhciai Gazette, appoint.

2. (1) In this Act, unless the context otherwise requires,—

Defini- tions.

21 of I860.

(a) 'association' means an association oi. individuals, whether incorpoiated or not, having an otlice in India and includes a society, whether registered under the Societies liegistration Act, 18bU or not, and any other organisation, by whatever name caiieci,

(b) "candidate toi election" means a person who has been du^y

nominated as, a candidate tor election 10 any ijeyiaiiiLuit:,

(c) "ioieign contribution" means the donation, delivery or transiei made by any ioieign somce,—

(i) of any article, not being an articie given to a person as a gilt ior his personal use, u¹ ihe maiket value, in India, ot s>uch article, on the date o± such gut, does not exceta one thousand rupees;

(ii) of any currency, whether Indian or foreign;

(Hi) of any foreign security as delined in clause (i) of sec-

tion Z 01 tne' i'oieign ^xciiaiigt; neguiauon x\ci, iai3;

49 of 1973.

(d) "foreign hospitality" rfieanb any ofrer, not being a purely casual one, made by a toreign source ior providing a person wiui the costs of travel to any foreign country or territory or with tree board, lodging, transport oi medical treatment.

(c) "foreign sotiiceJJ includes—

{"> the Government of any foreign country or territory and any a&ency of such Government,

(it) any international agency, not being the United Nations or a ny oi' ite specialised agencies, the World Ban& IiiticJrilditional Monetary Fund or such other agency as the Central Government may, by notification in t he Official Gazette, specify in. tins fehalf.

(i'u) a foreign company within the meaning oi srtrtion 591 of t he Companies Act, 195fi, and also includes,

1 of lOBfl.

(a) a company which is- a subsidiary of a foreign com- pany, and

(b) a multi-national corporation within the meaning of this Act.

(iu) a corporation, not being a foreign company, incorporat- ed in a foreign country or territory,

(v) a multi-national corporation within the meaning of this Act, * " ^ — — - ^ — — — • — — ™ — — ..

(vi) a company within the meaning of the Companies Act, I 195C, if more/ than one-half of the nominal value of its share I1 of 1056,

capital is held, either singly or in the aggregate, by one or more of the following namely: —

(i) Government of a foreign country or territory,

(ii) citizens of a foreign country or territory,

(in) corporations incorporated in a foreign country or territory,

(iv) trusts, societies or other associations of individuals (whether incorporated or not), formed or registered in a foreign country or territory;

(vii) a trade union in any foreign country or territory, whether or not registered in such foreign country or territory,

(viii) a foreign trust by whatever name called, or a foreign foundation which is either in the nature of trust or is mainly financed by a foreign country or territory,

(ix) a society, club or other association of individuals formeti or registered outside India.

(x) a citizen of a foreign country,

but does not include any foreign institution which has been permit- ted by the Central Government, by notification in the Official Gazette, to carry on its activities in India; Of) "Legislature" means—

(i) either House of Parliament,

(U) the Legislative Assembly of a State, or in the case pf a State, having a Legislative Council, either House of the Legis- lature of that State,

(Hi) Legislative Assemblv of a Union territory constituted under the Government of Union Territories Act, 1963,

20 of 1963

(iv) the Metropolitan Council of Delhi constituted under section 3 cf the Delhi Administration, Act, 1966,

19 of 1966.

(v) Municipal Corporations in metropolitan areas as defined 2 of 1974.

in the Code of Criminal Procedure, 1973.

(vi) District Councils and Regional Councils in the States of Assam and Mefihalaya and in the Union territory of Mijoiaqa aa provided in the Sixth Schedule to the Constitution, or

(vii) any other elective¹ body as may be notified by the Central Government.

as the case may be;

(q) "political party" means 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 (Reselt-vation and Allotment) Order, 1968 as in force for the time being;

(h) "prescribed" means prescribed by rules made under this Act;

(z) "registered newspaper" means a newspaper; registered under the Press and Registration of Books Act, 1867;

25 of 1867.

(j) "subsidiary" and "associate" have the meanings, respectively,

assigned to them in the¹ Companies Act, 1956;

1 of 1956.

(k) "trade union" means a trade union registered under the

Trade Unions Act, 1926.

16 of 1026.

Explanation.—For the purposes of this Act, a corporation incorporated in a foreign country or territory shall be deemed! to be a multi-national corporation if such corporation—

(o) has a subsidiary or a branch or a place of business in twoi or more countries or territories; or

(b) carries on business, or otherwise operates, in two or more countries or territories.

46 of 1973.

(2) Words and expressions used herein and not denned but denned in the Foreign Exchange Regulation Act, 1973, have the meanings respec- tively assigned to them in that Act.

46 of 1973.

43 of 1950.

43 of 1951.

Applica- tion of other laws not barred.

CHAPTER II

REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITY

Candi- date for election, etc., not to accept foreign contri- bution.

Explanation.— In clause (c), and in section 9, "corporation" -f- x means a corporation owned or controlled by Government and in- [ eludes a Government company as defined in section 617 of the Com- 1 paniels Act, 1956.

1 of 1956.

(2) (a)¹ No person, resident in India, and no citizen of India resident outside India, shall accept any foreign contribution, or acquire or agree to acquire any currency from a foreign source, on behalf of any political party, or any person referred to in sub-section (1), or both.

(b) No person, resident in India, shall deliver any curreny, whether

Indian or foreign, which has. been accepted from anv foreign source, to

any person if he knows or has reasonable cause to believe that such other

person intends, or is likely, to deliver such currency to any political party

or any person referred to in sub-section (1), or both.

(c) No citizen of India resident outside India shall deliver any currency, whether Indian or foreign, which has been accented from any foreign source, to—

(i) any political party or any person referred to in sub-section

(2), or both, or

Organisa- tion of a poli- tical nature not to accept foreign contri- bution except with the prior permis- sion of the Central Govern- ment.

256 - ~ - = - ^ - ^1 -IHH_GAZELT£_QE 1 M 1 L ^ J I X 1 E A Q R D 1 N A R Y_ ___ [PARI- H-

(b) Except with the prior permission of the Central Government^

no person, resident in, India, shall dejjver any foreign, currency to any person * h- * it he knows or has icastnable carso to believe that such other person intends, or is likely, to deVy.r such currency to an organi- sation referred to in sub-section (I).

(c) Except with the prior approval of the Central Government, no citizen of India, resident outside Ir,d:a, cbail deliver any currency, whether

Indian or'foreign, which has b^en accented from any foreign source, to—

(2) any organisation refe'rred to in sxib-section (I), or

(ii) any person, if he knew? or has reasonable cause to believe that such person in lends, or iz likely, to deliver such currency to an organisation rpfprrrd tn, irj tinn .'71

6. (I) Every association [not being an organisation referred to in sub-section (1) of section 5] having a definite cultural, economic, educa- tional, religious or social programme shall give, within such time and in such manner as may be prescribed, an intimation to the Central Government as to the amount of foreign contribution received by it, the 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 it.

Certain associa- tions and persons receiving foreign contri- bution to give intima- tion to the Central Govern- ment.

(2) Every candidate for election, who had received any foreign contribution, at any time within one hundred and eighty day? imme- diately preceding the date on which he is duly nominated as such, candidate, shall give, within such time and in such manner as may be' prescribed, an intimation to the Central Government as to the amount. of foreign contribution rdeeived hv him. the source from which and the I manner in which such foreign contribution wpr- received and the pur- poses for which, and the manner in which, such foreign contribution was . I utilised by him.

7. (i) Every citizen of India receiving anv scholarship, stipend or any payment of a ^ke nature from any foreign source shall give, within such time and in such manner as may b^ prescribed, an intimation to the Central Government as to the amount of the scholarship, stipend or other payment received bv him and the foreign source from which, and the purpose for which, such scholarshiD, stipend or other payment has been, or is being, received, by him.

Recipients of shcolar- ships, etc., to give intima- tion to the Central •Govern- ment.

(2) Where any recurring payments are being received by anv citizen of India from any foreign source¹ by way of scholarship, stipend or other payment, it shall be sufficient if the intimation referred to in sub-section (1) includes a precise information as to the intervals at which, and the purpose for which, such recurring payments will be received by such citizen of India.

(3) It shall not be necessary to give such intimation as is referred! to in sub-section fl)-or sub-section (?) in relation to scholarships, I stipends or payments of a like nature, if the' annual value of such |

as the Central Government may, by rule made under this Act, specify in this bejhalf.

I scholarships, stipends or other payments does not exceed such limits

8. Woihing contained in section 4 shall apply to the acceptance, by any person specihed in that section, of any toreign contribution, where such contribution is accepted by him, subject to the provisions of section 1 0-

Persons to whom section 4 shall not apply.

(u) by way ol salary, wages or other remuneration due to him or to any group of persons working under him, from any foreign suice or by way, of payment in the ordinary course of business transacted in India by such foreign source; or

(b) by way of payment, in the course of international trade or commerce, or in the¹ ordinary course of business transacted by him

outside India; or

(cX as an agent of a foreign source in relation to any; transaction

made by such foreign source with Government; or

(d) by way ol a gift or presentation made to him as a member of any Indian delegation, provided that such gift or present was accepted in accordance with the regulations made by the Central Government with regard to the acceptance or retention of such gift or presentation; or

(e) from his relative when such foreign contribution has been

received with the previous permission of the Central Government;

Provided that no such permission shall be required if the amount of foreign contribution received by him from his relative does not exceed, in value, eight thousand rupees per annum and an intimation is given by him to the Central Government as to the amount re- ceived, the source from which and the manner in which it was received and the purpose for which and the manner in which it was utilised by him;

4fl of 1073.

(f) by way of remittance received, in the ordinary course of business, through any, official channel, post office, or any authorised dealer in foreign exchange under the Foreign Exchange Regulation Act, 1973.

Explanation.—In this Act, the expression ^relative" has the

meaning assigned to it in the Companies Act, 1956.

1 of 1956

Restric- tions on accep- tance, of foreign, hospi- tality.

10. The Central Government may—

(a) prohibit any association, not specified in section 4, * * * or

any person, from accepting any foreign contribution;

(b) require any association, spe'ciiied in section 6, to obtain prior permission of the Central Government before accepting any foreign contribution;

Power of Central Govern- ment to prohibit receipt of foreign contri- bution, etc., in certain cases.

(c) require any person or dass of persons or any association, not being an association specified in section 6, to furnish intimation within such time and in such manndx as may be prescribed as to the amount of any foreign contribution received by such person or class of persons or association, as the case may be, and the source from which and the manner in which such contribution was received and the purpose for which and the mannetr in which such foreign, contri- bution was utilised;

(d) require any person or class of persons, not specified in section 9, to obtain prior permission of the Central Government before accenting any foreign hospitality.

(e)( require any person or class of persons, not specified in section 9, to furnish intimation, within such time and in such manner as may be prescribed, as to the receipt of any foreign hospitality, the source from which and the manner in which such hospitality was received:

Provided that no such prohibition or requirement shall be made unless the Central Government is satisfied that the acceptance of foreign contribution by such association or person or class of persons, as the case may be, the acceptance¹ of foreign hospitality by such person, is likely to affect prujudicially—

(i) the sovereignty and integrity of India; or

(it) the public interest; or

(iii) freedom or fairness of election to any Legislature; or

(iu) friendly relations with any foreign State; or

(v) harmony between religious, racial, linguistic or regional

groups, castes or communities.-

11. (1) Every individual, association, organisation or other person,

who isTequired by or unde'r this Act to obtain the prior permission of the

Central Government to accept any foreign contribution or foreign hospi-

tality, shall, before the acceptance of any such contribution or hospitality,

make an application for such permission to the Central Government in

such form and in such manner as may b3 prescribed.

(2) If an application referred to in sub-section (1) is not disposed of within ninety days from the date of receipt of such application, the permission prayed for in such application shall, on the expiry of the said period of ninety days, be ddemed to have been granted by the Central Government:

Applica- tion to be made in pres- cribed form for obtaining prior permission to accept foreign contri- bution or hospi- tality.

Provided that, where in relation, to an application, the Central Gov- ernment has informed the applicant the special difficulties by reason of which his application cannot be| disposed of within the said period of ninety days, such application shall not, until the expiry of a further period of thirty days, be deemed to have been granted by the Central Government.

CHAPTER III

MISCELLANEOUS

Power to prohibit payment of currency received in contra- vention of the Act.

37 o* 1967.

12. Where the Central Government is satisfied, after making such inquiry as it may deem fit, that any person has in his custody or control any article or currency, whether Indian or foreign, which has been accepted by such person in contravention of any of the provisions of this Act, it may, by order in writing, prohibit such person from paying, delivering, transferring or otherwise dealing with, in any manner what- soever, such article or currency save in accordance with the written orders of the Central Government and a copy of such order 3hall be served upon the person so prohibited in the prescribed manner, and there- upon the provisions of sub-sdetions (2), (3), (4)i and (5) of section 7 of the Unlawful Activities (Prevention) Act, 1967 shall, so far as may be, apply to, or in relation to, such article or currency and references in the said sub-sections to moneys, securities or credits shall be construed as refer- ences to such article or currency.

13. Every association, referred to in section 6, shall maintain, in such

form and in such manner as may be prescribed,—

(a) an account of any foreign contribution received by it, and

(b) a record as to the manner in which such contribution has

Reciyiients of foreign contri- bution to maintain accounts, etc, beeta utilised by it.

14. If the Central Government has, for any reason, to be recorded in

Lting, any ground to suspect that, any provision of this Act has been,

or is being, contravened by—

Inspection of accounts or records.

(a) any political party, or

(b) any person, or

(c) any organisation, or

(d) any association,

it may, by general or special order, authorise sach gazetted officer, holding

a class I post, as it may think fit (hereinafter referred to as 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 authorised officer shall have the right to enter in or upon any premises at any reasonable liour, before sunset and after sunrise, for the purpose of inspecting the said account or record:

Provided that no gazetted officer shall be authorised to inspect the account or record 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, for not less than ten years.

Seizure oi¹ account or records.

15- If, after inspection of an account, or record referred to in section 14, the authorised! officer has any reasonable cause to believe that any provision of this Act or of any other law relating to foreign exchange has been, or Ls being contravened, he may seize such account or record and produce the same before the court in which any proceeding is brought for such contravention:

Provided that the authorised officer shall return such account or record to the person from whom it was seized if no proceeding is brought within six months from the date of such seizure for the contravention disclosed by such account or record.

16. If any gazetted officer, authorised in this behalf by the Central Government, by general or spdeial order, has any reason to be]ieve that any person has in his possession or control any article exceeding rupees

one thousand in value, or currency, whether Indian or foreign, in rela- tion to which any provision of this Act has beetn, or is being contravened, he may seize such article or currency.

Seizure of article or currency reoeiv- ed in contra- vention of the Act.

17. Every seizure made under this Act shall be made in accordance

with the provision of section 100 of the Code of Criminal Procedure, 1973. 2 of 1074.

Seizure to bo made in accor- dance with the Code of Criminal Proce- dure, 197H.

18. Any article' or currency which is seized under section 16 shall be liable to confiscation if such article or currency has been adjudged under

section 19 to have been received or obtained in contravention of this Act, Confisca- tion of article or currency- obtained in contra- vention 01 the Act,

M. Any confiscation referred to in section 18 may bd adjudged—

(a) without limit, by the Court of Session within the local limits Adjudica- tion oi confisca- tion.

of whose jurisdiction the seizure was made; and

(b), subject to such limits as may be prescribed, by such officer, not below the rank of an Assistant Sessions Judge, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

20 No order of adjudication of confiscation shall be made unless a reasonable opportunity of making a representation against such con- fiscation has been £iv< n to 'he person from whom anv article or cur- jjEijcy hers' been seized.

Oppor- tunity to be given before adjudica- tion of confisca- tion.

Appeal.

21. (1) Any person aggrieved by any order made under section 19 may

prefer an appeal,—

(a) where the order has beten made by the Court of Sessions, to

the High Court to which such Court is subordinate; or

(6) where the order has been made by any officer specified under

clause (o) of section 1H, to the Court of Session within the local limits of wh( se jurisdiction such order of adjudication of confiscation was made,

within one month from the date of communication to such person of the order:

Provided that the appellate court may, it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of one month, allow such appeal to be preferred within a further period of one month, but not' thereafter.

(2) Any organisation referred to in section 5, or any person or asso- ciation referred tc in section 9 or section 10, aggrieved by an order

made in pursuance of the Explanation to sub-section (I) of section 5 or

by an order of the Central Government refusing to give permission, or by any order made by the Central Government, under section 5 or sec- tion 9 or section 10, as the case¹ may be, may with'n sixty days from the date of such order prefer an appeal against such order to the High Court

UTTT—i' mriiiii" iiiinini iiniinniiU" i ini niinriininr-miir

within the local limits of whose Jurisdiction the appellant ordinarily

resides or carries on business or personally work's for ffain, or, where

the appeUant is an organization or association, the principal offic° of such

organization or association is loeatpd.

5 of 1908

(•5) Every anpdal preferred under this section shall be deemed to be an appeal from an original decree and the provisions of Order XLI of the First Schedule to the Code; of Civil Procedure. 1908, shall, as far as may be. apply thereto as they appav to an appeal from an original decrete.

2 of 1974

Penalty for art icle or cur- rency obtained in contra- vention of sec- tion 12.

Punish- ment for the contra- vention

o r J L ir Wh⁰⁶Ver £!CCePtS' °r aSSiStS ³ny PerSOn' P°l i t i c al Partv or orgamsatron m accepting, any foreign contribution or any currency •from a foreign source, in contravention of any provision ^ M T I C T O T I^ rule made thereunder, shall be punished with imprisonment fox ^^rxxr whxch may extend to five years, or with fine, or with both.

(2) Whoever accepts any foreign hospitality in c o n t ^n n on ⁰I a ny

2 of 1974.

Power to impose additional fine where article or currency is not available for con- fiscation.

Penalty for offences where no separate punish- ment has been provided.

Offences by com- panies.

(fa) "director", in relation to a firm, society, trade union or other association of individuals, means a partner in the firm or a member of the governing body of such society, trade union or other associa- tion of individuals.

27. No court shall take cognizance ot any offence under this Act, Bar to the Pro, except with the previous sanction oi the' Central Government or any officer authorised by that Government in this behalf.

F^Ciition of offences under the Act.

28. Notwithstanding anything contained in the Code of Criminal I'~i\estiaa-

Procedure, 1973, any offence punishable under this Act may also be 2 of Ifl74.

lion Liito Cases under the Art investigated into by such authority as the Central Government may specify in this behalf and the authority so specified shall have all the

powers which an officer Hi-charge of a police station has while making

nn investigation into a cognizable offence.

29. No suit or othei legal proceedings shall lie against the Cential Protec- tion of fction taken 111 goncl faitri_ Government in respect of any loss or damage caused or likelv to be caused by anything which is in good faith done or intended to b° done in pursuance of the provisions of this Act or, any rule or order made there- under.

30. (I) The Central Government may, by notification in the Official Power to make Gazette, make rules for carrying out the provisions of this Act

Hiles

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: —

(a) the time within which, and the manner in which, intima- tion is to be given by an association referred to in section 6. with regard to the foreign contributions received by it;

(b) the limits up to which receipt of scholarships, stipends or payments of a like nature need not be intimated to the Central Government;

(c) the time within which, and the manner in which, intima- tion is to be given by persons receiving any scholarship¹, stipend or any payment of a like nature from a foreign source;

(d) the time within which, and 1he manner in which a candidate for election should give intimation as to the amount of foreign con- tribution received by him at any time within one hundred and eightly days from the date when he became such candidate;

(e) the form and manner in which an application shall be made

for obtaining prior permission of the Central Government to receive

foreign contribution or foreign hospitality;

(f) fhe manner of service of the prohibitory order made under

SectionTS;

(g) the form and manner in which account or record seferred

to in section 13 shall be maintained.

(h) the limits up to which an officer, not below the rank of an

Assistant Sessions Judge, may make adjudication of confiscation;

(i) any other matter which is required to be, or may be, pres-

cribed.

(3) Evclry rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the ses- sion or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be*; of no effect, aa the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule).

31. If the Central Government is of opinion that it is necessary or Power to exempt.

expedient in the interests of the general public so to do, it may, by order and subject to such conditions as may bel, specified in the order, exempt any association (not being a political party), organisation or any individual (not being a candidate for election) from the operation of all

or any of the provisions of this Act and may, as often as may be neces- sary, revoke or modify such order.

32. Nothing contained in this ' Act shall apply to any transaction

bettween the Government of India and the Government of any foreign

country or territory.

Act not to apply- to Gov- ernment transac- tions.

B. N. BANERJEE, Secretary-General.

FBINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,

NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 76