Section 20 of The Foreign Contribution (Regulation) Act, 2010
Where any person who has been granted a certificate or given prior permission, fails to furnish any intimation under this Act within the time specified therefor or the intimation so furnished is not in accordance with law or if, after inspection of such intimation, the CentralGovernment has any reasonable cause to believe that any provision of this Act has been, or is being, contravened, the Central Government may, by general or special order, authorise such gazetted officer, holding a Group A post under the Central Government or any other officer or authority or organisation, as it may think fit, to audit any books of account kept or maintained by such person and thereupon every such officer shall have the right to enter in or upon any premises at any reasonable hour, before sunset and after sunrise, for the purpose of auditing the said books of account: Provided that any information obtained from such audit shall be kept confidential and shall not be disclosed except for the purposes of this Act.
Summary
- This provision allows the Central Government to order an audit of a person's accounts if there is reason to believe the law is being broken.
- An audit can be triggered if a person fails to furnish required intimations on time.
- An audit can also be ordered if the provided intimation is legally incorrect or raises suspicion upon inspection.
- The government authorises a Group A gazetted officer or another authority to conduct the audit.
- The authorised officer can enter the premises to audit books of account at any reasonable hour between sunrise and sunset.
- Any information obtained from the audit must be kept confidential and used only for the purposes of the Act.
Practical examples
FAQ
1. When can the government order an audit under Section 20 of The Foreign Contribution (Regulation) Act, 2010?
Under Section 20 of The Foreign Contribution (Regulation) Act, 2010, the government can order an audit if a person fails to furnish an intimation on time, furnishes a flawed intimation, or if there is reasonable cause to believe the law is being contravened.
2. Who is allowed to perform the audit according to Section 20 of the FCRA 2010?
According to Section 20 of the FCRA 2010, the Central Government can authorise a gazetted officer holding a Group A post, or any other officer, authority, or organisation it thinks fit.
3. Can the auditor visit a charity's office at midnight under Section 20 of the foreign funding law?
No, Section 20 of the foreign funding law restricts the auditor to entering premises at any reasonable hour before sunset and after sunrise.
4. Will the details found during the audit be made public under Section 20 of the 2010 Act?
Section 20 of the 2010 Act states that information obtained from such an audit must be kept confidential and disclosed only for the purposes of the Act.
Test yourself
Q1.What triggers an audit under Section 20 of The Foreign Contribution (Regulation) Act, 2010?
Q2.At what times does Section 20 of the foreign funding rules allow an inspecting officer to enter premises?
Q3.Under Section 20 of the FCRA 2010, what must happen to the information obtained during the audit?
Q4.Consider Section 19, which requires maintaining accounts, and Section 20 of The Foreign Contribution (Regulation) Act, 2010 together. If a person fails to properly log how they used their funds as required by Section 19, what action can be taken under Section 20?