ED seized ₹859.15 crore under PMLA and Rs 189.28 crore under FEMA Act (Press release 07th Feb 2023)

The Reserve Bank of India (RBI) has furnished the list of Digital Lending Apps (DLAs) being used by Regulated Entities (REs) of RBI to the Ministry of Electronics & Information Technology (MeitY), which in turn, has shared the list with respective intermediary (App Stores) and requested them to ensure that only the apps figuring in the list are hosted on their app stores. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

Giving information on addressing the issue of money laundering through illegal loan apps, the Minister stated that the Directorate of Enforcement (ED) has been entrusted to curb money laundering under the provisions of PML Act, 2002. ED has initiated investigation under PMLA in several cases where the proceeds of crime has been generated and acquired by accused persons/entities through illegal loan apps, the Minister stated.

In these cases, the Minister stated that as on date, proceeds of crime of Rs. 2,116 crore (approx) has been identified, out of which proceeds of crime amounting to Rs. 859.15 crore have been attached / seized / freezed under the provisions of PMLA. Further, assets amounting to Rs. 289.28 crores have been seized under section 37A of Foreign Exchange Management Act, 1999.

Giving more information, the Minister stated that the RBI has issued master circular on Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards/Combating Financing of Terrorism (CFT)/Obligation of banks and financial institutions under Prevention of Money Laundering Act (PMLA), 2002. Under this circular, banks and financial institutions have been advised to follow certain customer identification procedure for opening of accounts and monitoring of transactions of suspicious nature to avoid its misuse for money laundering and reporting the same to appropriate authority, the Minister stated.

The Minister further stated that RBI has issued digital lending guidelines dated 2.9.2022 which advises measures including, inter alia, due diligence of Loan Service Providers (LSPs), direct disbursal of loan from bank account of lender to bank account of the borrower without any pass-through/pool or third-party account to avoid layering, publishing of the list of DLAs, LSPs engaged by REs and details of activities to avoid anonymity.

Guidelines for consideration of proposals for acceptance of foreign hospitality under the Foreign Contribution (Regulation) Act, 2010 (MHA dated 21 Nov 2022)

The Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) and the Foreign Contribution (Regulation) Rules, 2011 (FCRR, 2011) came into force with effect from 01.05.2011. The provisions under the Act/Rules relating to ‘foreign hospitality’ and guidelines to be followed for consideration of proposals for acceptance of the same was circulated vide O.M. No. 11/21022/58(97)/2011 -FCRA-1 dated 20.09.2011. However, subsequent amendments in the FCRA, 2010 and FCRR, 2011 have necessitated review of those guidelines. Therefore these guidelines have been reviewed and fresh guidelines are hereby circulated for information and compliance by all concerned. It is requested that wide publicity may be given to these guidelines. In case of any doubt, relevant provisions of the FCRA, 2010, FCRR, 2011 and other statutory notifications may be referred.

Amendment in FCRA Rules (MHA notification dated 01st July 2022)

Rules wise amendment as below:
  1. Rule 6 [Intimation of receiving foreign contribution from relatives] – Any person receiving foreign contribution in excess of Rs. 10 lakhs [in place of Rs. 1 lakhs] or equivalent thereto in a financial year are required to report to the Central Government in Form FC-1 within 3 months [in place of 30 days] from the date of receipt of such contribution from relatives.
  2. Rule 9 [Application for obtaining ‘registration’ or ‘prior permission’ to receive foreign contribution] – In clause (e) of sub-rule(1) & clause (e) of sub-rule(2), the person is required to intimate online in Form FC-6D in relation to bank accounts opened for utilising the foreign contribution received within 45 days [in place of 15 days] of the opening of any account.
  3. Rule 13 [Declaration of receipt of foreign contribution] – Clause (b) relating to reporting of foreign contribution received by the person during the quarter in a financial year within 15 days from the end of the quarter has been omitted. Therefore, there is no requirement to furnish quarterly intimation in respect of foreign contribution received during the quarter.
  4. Rule 17A [Change of designated bank account, name, address, aims, objectives or key members of the association] – Any person who has been granted certificate of registration or prior permission u/s 11 of the FCRA Act shall intimate the changes in designated bank account [Form FC-6C], bank for the purpose of utilisation [Form FC-6D], name [Form FC-6A], address, aims & objectives [Form FC-6B] or key members [Form FC-6E] within 45 days [in place of 15days] from such change.
  5. Revision [Rule 20] – Any application for revision of an order passed by the competent authority u/s 32 of the Act shall be made in such form and manner, including in electronic form as may be specified by the Central Government [in place of plain paper].

FCRA: Complian of malpractices related to FCRA

Any complaint regarding malpractices in FCRA & MU wings of Foreigners Division, MHA may be sent to email
fcra-complaints[at]mha[dot]gov[dot]in. This email will be accessed exclusively by Joint Secretary.

A complaint box has been placed near MHA reception in Major Dhyan Chand National Stadium (MDCNS), Near India Gate, New Delhi. Any person desirous of raising complaint of malpractice related to FCRA may drop a complaint in the box.

India’s aim is to become world’s largest Startup destination

India’s aim is to become world’s largest Startup destination: Shri Piyush Goyal

“India-UAE ties to be a defining partnership for the 21st century”

Ministry of Commerce & Industry Press Release Posted Dated Mar 28, 2022

Union Minister of Commerce & Industry, Consumer Affairs and Food & Public Distribution and Textiles, Shri Piyush Goyal today said that the country aspires to become the largest Startup ecosystem in the world.

Addressing a session on ‘Gateway to Growth – Roundtable on Indian Startup Ecosystem’ in Abu Dhabi, UAE, Shri Goyal said, “Today we are the third largest Startup ecosystem, but our aspiration is to be the world’s number one startup destination. The Startup bug has caught India’s imagination. The entire innovation ecosystem that the Startup industry represents is giving a new direction, new momentum to India.”

The session was co-chaired by the UAE Minister of State for Entrepreneurship & SMEs, Ahmad Belhoul Al Falasi (virtual), Dr Thani Zeyoudi, Minister for International Trade, Mohamed Al Sharaf, Chairman, Abu Dhabi Economic Development Department. Representatives of ADGM, ADQ, Mubadala, Masdar, ADIO, AD Residents Office, G42, Hub71, Ardent Advisory, Chimera Investment among others also participated in the session.

Shri Goyal said, “India offers one of the best ecosystems for Startups with a special ‘jugalbandi’ or blend between investors and entrepreneurs to get a balanced outcome and achieve a win-win solution for all. I have seen tremendous response from the Dubai Expo where our Startups have got the opportunity to raise finances, sign MoUs and get angel investments. All these aspects will help strengthen India’s strong bond of friendship with the UAE.”

The Minister appreciated the promotion of Indian Startups by the India Innovation Hub platform under the India Pavilion. “I do hope that the 700 Startups that have showcased their innovation at Expo2020 Dubai would have all gone back enriched with newer opportunities and ideas for the future. I am sure that this initiative between India and the UAE on innovation and future technologies will power growth of businesses and take wings as we go forward,” added the Minister.

He said that the Startups need to experiment, fail and learn from their experiences. “I would urge all of you from the Startup world to go extra mile and take the Startup story to all the remote places, villages, small towns, northeastern India and other regions,” added Shri Goyal.

On the Government’s role in promoting Startups, the Minister said that India aims to provide a level playing field and the best business ecosystem to the Startups.

“We have recently finalized the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which is expected to further enhance bilateral trade, B2B engagement and explore attractive investment opportunities. I can assure you that we will take this partnership to newer heights in the areas of sustainability, aerospace, space technology, connectivity, AI, data analytics, 5G, Metaverse, etc. We look forward to leveraging each other’s offerings and expertise,” added the Minister.

Shri Goyal said that the UAE-India partnership is destined to play an important role in the global economy and in ensuring a better future for billions of people around the world. “This will be a defining partnership for the 21st century,” added the Minister.

Delhi HC upheld suspension of FCRA registration of Commonwealth Human Rights Initiative for alleged violations of FCRA

Delhi HC upheld suspension of FCRA registration of Commonwealth Human Rights Initiative for alleged violations of FCRA

Commonwealth Human Rights Initiative Vs Union of India (Delhi High Court) dated 14/02/2022


👉 The activities / projects for which foreign contribution has been received and utilised have not been given in the prescribed Point 3(a) in FC-4 Form in AR for the FYs 2018­-2019.

👉 The bank account No.600510110004721, Bank of India, New Delhi opened on February 18, 2016, has not been intimated online to the Ministry and there is a flow of foreign contribution in this bank account.

👉 One utilisation account through which the Association has been utilizing foreign contribution has not been intimated in ARs for the FYs 2016-2017 and 2017-2018.

👉 The association has refunded some foreign contributions back to the donor in FYs 2013-2014 and to 2014-2015 in violation of Section 8(1)(a) of the FCRA, 2010.

Copy of judgment



MHA did not freeze bank accounts of Missionaries of Charity (MoC) II Renewal application for FCRA registration refused due to adverse inputs (Press release dated 27th Dec 2021)

MHA did not freeze bank accounts of Missionaries of Charity (MoC)

State Bank of India informed that Missionaries of Charity itself sent a request to SBI to freeze its accounts

Renewal application under FCRA for renewal of FCRA registration refused due to adverse inputs

No request / revision application has been received from Missionaries of Charity for review of refusal of renewal

The renewal application under Foreign Contribution Regulation Act (FCRA) for the renewal of FCRA registration of Missionaries of Charity (MoC) was refused on 25 Dec 2021 for not meeting the eligibility conditions under FCRA 2010 and Foreign Contribution Regulation Rules (FCRR) 2011. No request / revision application has been received from Missionaries of Charity (MoC) for review of this refusal of renewal.

Missionaries of Charity (MoC) was registered under FCRA vide Registration No 147120001 and its registration was valid up-to 31 Oct 2021. The validity was subsequently extended up-to 31 Dec 2021 along with other FCRA Associations whose renewal application were pending renewal.

However, while considering the MoC’s renewal application, some adverse inputs were noticed. In consideration of these inputs on record, the renewal application of MoC was not approved. The FCRA registration of MoC was valid up-to 31st December 2021. MHA did not freeze any accounts of MoC. State Bank of India has informed that MoC itself sent a request to SBI to freeze its accounts.