Finin2min practical explanation · 11 October 2026
Section 37 of the Foreign Contribution (Regulation) Act, 2010 is a residual criminal-penalty provision. It applies to failures to comply with the Act where no separate punishment is provided. Its existence does not mean every regulatory discrepancy attracts the same charge.
The statutory enquiry is twofold: identify the exact FCRA duty allegedly breached and check whether a different section supplies punishment. Section 37 is not a substitute for correctly charging a specific offence.
The provision permits imprisonment for a term extending to one year, or a fine, or both. The actual outcome depends on charging, evidence, available statutory protections and judicial determination.
For organisations, Section 39 separately addresses offences by companies and persons responsible for conduct. Individual criminal liability cannot be presumed from a person’s name merely appearing on NGO registration records.
Preserve FCRA account statements, utilisation records, returns, donor documentation, officer authorisations, source of alleged non-compliance and notice history. Evaluate compounding, suspension/cancellation and proceedings only under the specific operative provisions.
An NGO filed an annual return late and receives a notice quoting Section 37. It should not conclude that all late filings necessarily result in imprisonment. Its advisers first identify the precise statutory return duty, current fee/compounding route, notice grounds and whether another provision specifically regulates the default.
The section provides a term which may extend to one year, or fine, or both.
No. It is framed for failures for which the Act has not separately provided a punishment.
Author and reviewer: CA Nikhil Gupta · Last reviewed 11 October 2026
Residuary offence: whoever fails to comply with any provision of the Act for which no separate penalty is provided is punishable with imprisonment for up to one year, or with fine, or with both.
Finin2min summary — explanatory text. The official Act, Rules, Regulations and notifications control if there is any difference. Educational and research resource, not legal, regulatory, tax or investment advice; verify the instrument in force on the relevant date.