Rule 8 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 8 says how a prohibitory order about an article, currency or security received in contravention of the Act reaches the person concerned. There are three modes in order of preference: delivery or tender, post, and, if neither is possible, affixing on the premises with a written report witnessed by at least two persons.
This article reads rule 8 as per the Rules as amended by the notifications named in this article; the latest consulted is S.O. 3272(E) dated 22 June 2026. None of the notifications held amends rule 8, so the text is that of the third-party consolidation of 17 September 2019, checked against the Rules as notified on 29 April 2011 (an OCR of the official scan), and the two agree in substance. Later amendments should be checked. If you have been served with such an order, our legal dispute resolution team can read the order and the service with you.
Under section 10, the Central Government may by order in writing prohibit a person from dealing with an article, currency or security accepted in contravention of the Act, and a copy must be served in the prescribed manner. Rule 8 prescribes it: (a) deliver or tender it to the person or his duly authorised agent; or (b) send it by registered post with acknowledgement due or speed post to the last known address; or (c) if it cannot be served in either way, affix it on the outer door or another conspicuous part of the premises, with a written report witnessed by at least two persons.
The link with section 10
Section 10 applies where the Central Government is satisfied, after making such inquiry as it deems fit, that a person has in his custody or control any article or currency or security, whether Indian or foreign, accepted in contravention of the Act. It may then, by order in writing, prohibit that person from paying, delivering, transferring or otherwise dealing with it, save in accordance with the written orders of the Central Government. "A copy of such order shall be served upon the person so prohibited in the prescribed manner." Rule 8 is that manner. Section 48(2)(i) lists it as a rule-making head. The full section, including the application of sub-sections (2) to (5) of section 7 of the Unlawful Activities (Prevention) Act, 1967, is in the article on section 10.
Rule 8(1)
"The Central Government may issue a prohibitory order for contravention of the Act in respect of any article, currency or securities." The rule repeats the power in section 10. The rule heading reads "Action in respect of article, currency or security received in contravention of the Act".
Rule 8(2): the three modes of service
| Mode | Text | Notes |
|---|---|---|
| (a) | By delivering or tendering it to that person or to his duly authorised agent | The person or an authorised agent |
| (b) | By sending it to him by "registered post with acknowledgement due" or "speed post" to the address of his last known place of residence, or the place where he carries on, or is known to have last carried on, business, or the place where he personally works for gain or is known to have last worked for gain; and, in the case of an organisation or an association, to the last known address of the office of the organisation or association | Post, to the last known address of the kind described |
| (c) | If it cannot be served in any of the manner aforesaid, by affixing it on the outer door or some other conspicuous part of the premises in which that person resides or carries on, or is known to have last carried on, business or personally works for gain or is known to have last worked personally for gain and, in the case of an organisation or an association, on the outer door or some other conspicuous part of the premises in which the office of the organisation or association is located or is known to have been last located; and the written report whereof should be witnessed by at least two persons | Last resort |
Reading the modes
- Order of use. Clause (c) applies only "if it cannot be served in any of the manner aforesaid", that is, by (a) or (b). The text does not say how many attempts at (a) or (b) must be made.
- Addresses. Clause (b) lists a residence, a place of business, or a place where the person "personally works for gain", and for an organisation or association, the last known address of its office. It speaks of the last known address, so a past address can count.
- Witnesses. The written report of affixing "should be witnessed by at least two persons". The word is "should", and the rule does not say who the witnesses are.
- Electronic service. Rule 8 mentions no electronic service. G.S.R. 695(E) inserted "in electronic form" in several rules but not in rule 8.
Example (invented). A prohibitory order is issued to the Vikas Bharti Society, naming a sum of foreign currency held in an account. The Society's office has moved, and the order sent by registered post to the last known office address returns undelivered. The Society's old premises are still known. The officer affixes the order on the outer door of the old office, and a written report is witnessed by two persons. Under rule 8(2)(c) that is a permitted mode, because delivery and post could not serve it. Whether the service was properly done in the facts is a question to put to a legal adviser with the report in hand.
What the service starts
Section 10 says "thereupon" the provisions of sub-sections (2) to (5) of section 7 of the Unlawful Activities (Prevention) Act, 1967 apply, so far as may be, to the article, currency or security. Breach of a prohibitory order is punishable under section 34; see the article on sections 33 and 34. The texts consulted do not say what happens if service is defective; this article does not speculate.
Related Rules
Rule 9 onward deals with registration and prior permission; see rule 9. Rule 7, the preceding rule, is explained in the article on rule 7.
Need help with a prohibitory order?
An order that stops dealings in an article, currency or security needs a prompt and careful reading, including how it was served. Our legal dispute resolution team can examine the order, the covering papers and your account position.
Key takeaways
- Rule 8 prescribes how a copy of a prohibitory order under section 10 is served.
- The modes are delivery or tender, registered post with acknowledgement due or speed post, and affixing on the premises.
- Affixing is available only if the earlier modes cannot be used, and the written report should be witnessed by at least two persons.
- For organisations and associations, the last known address of the office is used.
- Rule 8 has not been amended in the notifications held.
Read next
- Section 10: prohibitory order on article, currency or security
- Sections 33 and 34: false statement and breach of a prohibitory order
- Rule 7: application to accept foreign hospitality
- Rule 9: application for registration, conditions and scope
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.