INSPECTION, SEARCH AND SEIZURECentral

Section 24 of The Foreign Contribution (Regulation) Act, 2010

If, after inspection of an account or record referred to in section 23, the inspecting 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 is being, contravened, he may seize such account or record and produce the same before the court, authority or tribunal 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.

Summary

An inspecting officer can seize accounts or records if they find reasonable cause during an inspection to believe a law is being broken.
This power covers violations of the foreign contribution rules as well as any other law relating to foreign exchange.
The officer who seizes the records must present them to the court, authority, or tribunal where the legal proceedings are taking place.
The seized records must be returned to the owner if no legal proceedings are started within six months from the date they were seized.

Practical examples

1On March 1, 2025, an inspector checks the books of a local group, suspects a major foreign exchange violation, and seizes the ledgers. No case is filed, so the inspector returns the ledgers to the group on September 1, 2025.

2During a routine check, an officer spots evidence of illegal foreign funding, takes the physical account books, and immediately submits them to the tribunal where the group is facing charges.

FAQ

1. Can an inspector just take my documents without an inspection under Section 24 of the FCRA?

No, Section 24 of The Foreign Contribution (Regulation) Act, 2010 clearly states that the seizure happens if the officer has reasonable cause to believe there is a violation after an inspection of the records has taken place.

2. How long can the government keep my account books without filing a case under Section 24 of the FCRA?

Under Section 24 of The Foreign Contribution (Regulation) Act, 2010, the authorised officer must return the seized records if no legal proceeding is brought within six months from the date of the seizure.

3. Does Section 24 of the FCRA only apply to violations of the foreign contribution rules?

No, Section 24 of The Foreign Contribution (Regulation) Act, 2010 allows the inspecting officer to seize records if they suspect a violation of this specific law or of any other law relating to foreign exchange.

Test yourself

Q1.How do Section 23 and Section 24 of The Foreign Contribution (Regulation) Act, 2010 work together regarding the seizure of records?

Q2.Under Section 24 of The Foreign Contribution (Regulation) Act, 2010, what is the mandatory time limit for starting legal proceedings before seized records must be returned?

Q3.According to Section 24 of The Foreign Contribution (Regulation) Act, 2010, a seizure can happen if there is a suspected violation of the Act itself, or a violation of what other type of law?

Q4.Where must an officer produce the documents seized under Section 24 of The Foreign Contribution (Regulation) Act, 2010?

23PreviousSection 23 Inspection of accounts or records.25NextSection 25 Seizure of article or currency or security received in contravention of the Act.

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