Section IV

Other Key Definitions

Section IV

Who or what is a ‘person’ for the purpose of FCRA, 2010?

Answer: As defined in Section 2(1(m) of FCRA, 2010, ‘person’ includes —

(i)        an individual

(ii)       a Hindu undivided family

(iii)      an association

(iv)      a company registered under section 25 of the Companies Act, 1956[1].

[1] Now, Section 8 of the Companies Act, 2013.

What is an ‘association’ for the purpose of FCRA, 2010?

Answer: According to Section 2(1(a) of FCRA, 2010 —

• An ‘association’ means an association of individuals, whether incorporated or not, having an office in India.
• It includes a society, whether registered under the Societies Registration Act, 1860, or not, and
• Any other organisation, by whatever name called.

Please note that the term ‘association’ covers all types of associations in the widest possible sense. All types of conceivable Associations of two or more individuals, whether incorporated under any Act or not, and having an office in India, are covered under this definition.  All sorts of organisations, societies, trusts, companies etc, by whatever name called are covered within this definition.  It is also immaterial whether the Associations are registered or not.

Who is a candidate for election?

Answer: A ‘candidate for election’ means a person who has been duly nominated as a candidate for election to any Legislature vide Section 2(1)(d) of FCRA, 2010.

​

What is a Legislature?

Answer:​ In terms of Section 2(1)(k) of FCRA, 2010, ‘Legislature’ means —

(A) either House of Parliament;

(B) the Legislative Assembly of a State, or in the case of a State having a Legislative Council, either House of the Legislature of that State;

(C) Legislative Assembly of a Union territory constituted under the Government of Union Territories Act, 1963;

(D) Legislative Assembly for the National Capital Territory of Delhi referred to in the Government of National Capital Territory of Delhi Act, 1991;

(E) Municipality as defined in clause (e) of article 243P of the Constitution;

(F) District Councils and Regional Councils in the States of Assam, Meghalaya, Tripura and Mizoram as provided in the Sixth Schedule to the Constitution.

(G) Panchayat as defined in clause (d) of article 243 of the Constitution; or

(H) any other elective body as may be notified by the Central Government.

What is a political party?

Answer: In terms of Section 2(1)(n) of FCRA, 2010, ‘political party’ means —

(i)  an association or body of individual citizens of India —

(A) to be registered with the Election Commission of India as a political party under section 29A of the Representation of the People Act, 1951; or

(B) which has set up candidates for election to any Legislature, but is not so registered or deemed to be registered under the Election Symbols (Reservation and Allotment) Order, 1968;                       

(ii)  a political party mentioned in column 2 of Table 1 and Table 2 to the notification of the Election Commission of India No.56/J&K/02, dated the 8^th August, 2002, as in force for the time being.

What is a foreign security?

Answer: According to section 2(o) of the Foreign Exchange Management Act, 1999, ‘foreign security’ means any security, in the form of shares, stocks, bonds, debentures or any other instrument denominated or expressed in foreign currency and includes securities expressed in foreign currency, but where redemption or any form of return such as interest or dividends is payable in Indian currency.  On the issue of dealing with foreign contribution received in the form of ‘foreign security’, please refer to the replies to Q. 165 & Q. 166.​

What is the meaning of ‘Authorised Person in foreign exchange’?

Answer: Section 2(1)(b) of FCRA, 2010 defines “authorised person in foreign exchange” to mean an authorised person referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (FEMA).  In terms of section 2(c) of FEMA, ‘authorised person means an authorised dealer, money changer, offshore banking unit or any other person for the time being authorised under sub-section (1) of section 10 to deal in foreign exchange or foreign securities’.

What is a trade union?

Answer: According to Section 2(1)(u) of FCRA, 2010, ‘trade union’ means a trade union registered under the Trade Unions Act, 1926.​

What is a registered newspaper?

Answer: According to Section 2(1)(q) of FCRA, 2010, ‘registered newspaper’ means a newspaper registered under the Press and Registration of Books Act, 1867 (PRB Act). In terms of Section 1(1) of the PRB Act, ‘newspaper’ means any printed periodical work containing public news or comments on public news.​

What is a corporation for the purposes of FCRA, 2010?

Answer:  For the purposes of Section 3(c) and Section 6 of FCRA, 2010, “corporation” means a corporation owned or controlled by the Government and includes a Government Company as defined in clause (45) of section 2 of the Companies Act, 2013. [2]

[2]  The earlier definition was substituted by the Explanation 2 under section 3(1(c) by the Foreign Contribution (Regulation) Amendment Act, 2020 vide Notification dated the 28th September, 2020.

Who is a relative under FCRA, 2010?

Answer: As per Section 2(1)(r) of FCRA, 2010 “relative” has the same meaning assigned to it in clause (41) of section 2 of the Companies Act, 1956.  However, the definition of ‘relative’ and the list of ‘relatives’ given in Section 6 and Schedule 1A of the Companies Act, 1956 have changed under the Companies Act, 2013.  It may be noted that the Companies Act, 2013 has pruned list of relatives to a great extent. 

 Section 2(77) of the Companies Act, 2013 states that “relative”, with reference to any person, means anyone who is related to another, if –

(i) they are members of a Hindu Undivided Family; 

(ii) they are husband and wife; or

(iii) one person is related to the other in such manner as may be prescribed**;

**Prescribed under Rule 4 of the Companies (Specification of definition details) Rules, 2014 vide Ministry of Corporate Affairs Gazette Notification G.S.R 238 (E) dated 31^st March, 2014 with reference to Section 2(77) (iii) of the Companies Act, 2013 –

List of relatives in terms of clause 77 of section 2.- A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely: – 

(1) Father:  Provided that the term “Father” includes step-father;

(2) Mother:  Provided that the term “Mother” includes the step-mother; 

(3) Son:  Provided that the term “Son” includes the step-son;

(4) Son’s wife;

(5) Daughter;

(6) Daughter’s husband;

(7) Brother:   Provided that the term “Brother” includes the step-brother;

(8) Sister:  Provided that the term “Sister” includes the step-sister.