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Received foreign fund in section 25 company current account

Nani india (Dir) (41 Points)

22 July 2014

Hi Sir,

I have registered an NGO under section 25 company it has been a just a year old, the issue is, I received a foreign fund into my current bank account of 3 lash rupees and before I received I asked the bank people whether can My friend company can send fund to my account and they said yes, so I asked them to send and now CA says that I have violated the law and that I was not supposed to receive any fund from foreign country into my current account without FCRA. Guys help me how to come out of this. This is just my thought, Can I just goahead and close the current bank account of my company and open it in another bank ?

Appreciate your help.

tks

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2 Replies

CA R SEETHARAMAN (CA Practice ) (146893 Points)
Replied 22 July 2014

Don't close the present account. Don't spend the amount. The Govt, may take the money as penalty until then keep it there. Register for FCRA and open a separate account for FCRA after Govt approval only receive foreign funds of Foreign nationals through FCRA account. Receiving foreign money from NRI's and Indian passport holders is not covered under FCRA.

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Nani india (Dir) (41 Points)
Replied 22 July 2014

thank you seetharaman for your prompt reply. Actually it was very late that I got to know about this FCRA and the the fund I received was already used. And for info this fund is from a foreign company.

Tks