Section 13 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.
Section 13 lets the Central Government suspend a certificate while it considers whether to cancel it. During suspension the holder cannot receive foreign contribution unless the Government allows it, and can use the foreign contribution already in its custody only in the prescribed manner and with the Government's prior approval. The Amendment Act, 2020 made the suspension period extendable.
This article reads section 13 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), paragraph 8. Later amendments should be checked.
The Central Government may, for reasons recorded in writing, suspend a certificate by order in writing pending consideration of cancellation on any ground in section 14(1). The period is one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified. During suspension the holder may not receive foreign contribution unless allowed on application, and must utilise the foreign contribution in its custody in the prescribed manner with prior approval.
Section 13(1): the power to suspend
Where the Central Government, "for reasons to be recorded in writing, is satisfied that pending consideration of the question of cancelling the certificate on any of the grounds mentioned in sub-section (1) of section 14, it is necessary so to do", it may, by order in writing, suspend the certificate.
Our legal dispute resolution practice can read a suspension order and its reasons with you. Three features of the section stand out.
- Reasons in writing. The Government must record its reasons. The text does not say that a copy of the reasons goes to the holder.
- Pending cancellation. Suspension is an interim step linked to a possible cancellation on a ground in section 14(1); it is not itself a penalty. The grounds are in the article on section 14.
- Necessity. The Government must be satisfied that it is "necessary so to do".
The period, before and after the Amendment Act, 2020
| As enacted | After the 2020 Amendment Act |
|---|---|
| "for such period not exceeding one hundred and eighty days as may be specified in the order" | "for a period of one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified in the order" |
Paragraph 8 of the Amendment Act says that in section 13(1), for the words "for such period not exceeding one hundred and eighty days as may be specified", the words "for a period of one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified" are substituted. The words "in the order" that follow in the enacted text remain.
Read after the amendment, the suspension period is one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified in the order. The words are drafted as one phrase; the plain reading is that the order can specify one hundred and eighty days and a further period of up to one hundred and eighty days more. The text does not say whether the further period must be specified in the same order or by a later one; it leaves that to "as may be specified". Take advice on the order you actually hold.
Section 13(2): what the holder must do
Every person whose certificate has been suspended shall:
(a) not receive any foreign contribution during the period of suspension. The proviso says the Central Government, "on an application made by such person, if it considers appropriate, allow receipt of any foreign contribution by such person on such terms and conditions as it may specify".
(b) utilise, in the prescribed manner, the foreign contribution in his custody with the prior approval of the Central Government.
The rule that deals with how much of the foreign contribution may be used during suspension is explained in the article on rules 14 and 14A. This article does not state its content.
Two things in sub-section (2) deserve attention. First, the bar in clause (a) covers "any foreign contribution", and the definition in section 2(1)(h) includes interest and other income derived from foreign contribution (Explanation 2); see the article on foreign contribution. Second, the proviso is a route to relief, not a right: the Government allows receipt only "if it considers appropriate".
Example (invented). The certificate of Jeevan Jyoti Trust is suspended pending consideration of cancellation. A foreign donor has already promised a further instalment. The trust may not receive it during the suspension, unless it applies and the Central Government allows receipt on terms. The trust must also seek prior approval before spending the foreign contribution it already holds, and use it in the prescribed manner.
Effects around the suspension
- New applications. The second proviso to section 12(3) makes a person ineligible for a fresh certificate or prior permission if his certificate has been suspended and the suspension continues on the date of the application; see the article on section 12.
- Cancellation. If the Government goes on to cancel the certificate, the person must first be given a reasonable opportunity of being heard under section 14(2), and is ineligible for three years from the date of cancellation under section 14(3).
- Appeal and revision. Section 31(2) lists orders against which an appeal lies to the High Court within sixty days, and it names section 12(2), section 12(4) and section 14(1); it does not name section 13. The Central Government's revision power in section 32 applies to orders of the Central Government under the Act; see the article on section 32. Take advice on the remedy for a suspension order.
- Evidence. A holder of a suspended certificate should keep the foreign contribution account accurate, because section 13(2)(b) requires utilisation in the prescribed manner.
Need help with a suspension order?
A suspension stops fresh receipts and puts spending under prior approval. Talk to our legal dispute resolution team as soon as an order or notice arrives, and bring the order, the account statements and the correspondence.
Key takeaways
- Suspension is pending consideration of cancellation on a ground in section 14(1), by order in writing for reasons recorded in writing.
- Since 2020 the period is one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified.
- During suspension no foreign contribution may be received without the Government's permission on application.
- Foreign contribution in custody may be used only in the prescribed manner with prior approval.
- While suspension continues, a fresh application for a certificate is barred by section 12(3).
Read next
- Section 12: application, grant, refusal and validity
- Section 14: cancellation of certificate
- Section 16: renewal of certificate
- Rules 14 and 14A: use of funds during suspension and reasonable activity
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.