Section 14 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 14 is the cancellation provision. It lists five grounds on which the Central Government may cancel a certificate, requires a reasonable opportunity of being heard first, and bars the holder from registration or prior permission for three years afterwards.
This article reads section 14 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change section 14 but inserted section 14A on surrender, taken up in a later article. Later amendments should be checked.
The Central Government may, after such inquiry as it deems fit, cancel a certificate by order if (a) a statement in the application or renewal is incorrect or false, (b) terms and conditions of the certificate were violated, (c) it is necessary in the public interest, (d) the Act, rules or an order were violated, or (e) the holder has not been engaged in reasonable activity in its chosen field for two consecutive years or has become defunct. No order without a reasonable hearing. The holder is then ineligible for three years.
Section 14(1): the five grounds
| Clause | Ground |
|---|---|
| (a) | The holder of the certificate has made a statement in, or in relation to, the application for the grant of registration or renewal, which is incorrect or false |
| (b) | The holder has violated any of the terms and conditions of the certificate or renewal |
| (c) | In the opinion of the Central Government, it is necessary in the public interest to cancel the certificate |
| (d) | The holder has violated any of the provisions of the Act or rules or order made under it |
| (e) | The holder has not been engaged in any reasonable activity in its chosen field for the benefit of the society for two consecutive years, or has become defunct |
The power is exercised "if it is satisfied after making such inquiry as it may deem fit, by an order". Our legal dispute resolution team can help prepare the reply to a notice and, if needed, an appeal. Some points on each ground follow.
Clause (a): false or incorrect statements. The ground covers a statement made "in, or in relation to" the application, which is wider than the application form alone. Both the application for grant and the application for renewal are covered. False statements can also be an offence under section 33(b); see the article on sections 33 and 34.
Clause (b): terms and conditions. The certificate is granted subject to terms and conditions; see the article on section 12. A breach of any of them is a ground, whatever its size, on the face of the words. The Act does not grade breaches in this clause.
Clause (c): public interest. Cancellation is allowed where "in the opinion of the Central Government" it is necessary in the public interest. The ground rests on the Government's opinion. The hearing requirement in sub-section (2) still applies.
Clause (d): violation of the Act. Any provision of the Act, or of the rules or an order made under it, can ground cancellation. Obligations such as the use of foreign contribution for its purpose (section 8), receipt in the designated account (section 17) and the intimation and records (sections 18 and 19) are all within it. See the article on section 8.
Clause (e): no reasonable activity, or defunct. Two limbs: no reasonable activity in its chosen field for the benefit of the society for two consecutive years, or the holder has become defunct. The measure of "reasonable activity" in this context is explained by rule 14A; see the article on rules 14 and 14A. This article does not state what the rule says.
Section 14(2): the hearing
"No order of cancellation of certificate under this section shall be made unless the person concerned has been given a reasonable opportunity of being heard." The hearing comes before the order; the word "reasonable" means the notice and time given must allow a genuine reply. The text says nothing about the form of the notice, the period allowed or the manner of the hearing.
A holder who receives a show-cause notice should read the ground alleged, collect the documents that answer it, and file a written reply within the time given. Pending cancellation the Government may also suspend the certificate, as explained in the article on section 13.
Section 14(3): three years of ineligibility
"Any person whose certificate has been cancelled under this section shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of such certificate." The bar covers both registration and prior permission and runs from the date of cancellation.
What follows a cancellation
- Vesting. Under section 15(1), the foreign contribution and assets created out of it in the custody of a person whose certificate has been cancelled vest in such authority as may be prescribed; see the article on sections 14A and 15.
- Appeal. Section 31(2) allows an appeal to the High Court against an order made by the Central Government under section 14(1), within sixty days from the date of the order, to the High Court within whose jurisdiction the appellant ordinarily resides or carries on business or personally works for gain or, for an organisation or association, where its principal office is located; see the article on section 31.
- Revision. Section 32 gives a revision power to the Central Government with its own time limits, but not where an appeal lies and the time for it has not expired; see the article on section 32.
- Surrender is different. Since 2020, section 14A allows a holder to ask to surrender a certificate if the Government is satisfied after inquiry that the holder has not contravened the Act; that is not cancellation and does not carry the three-year bar in section 14(3).
Example (invented). Sunrise Education Society receives a notice stating that its certificate may be cancelled because it has not been engaged in any reasonable activity in its chosen field for two consecutive years. Its reply should be backed by records of its programmes, minutes and accounts. If the order of cancellation follows, the society cannot apply for registration or prior permission for three years from the date of cancellation, and may appeal to the High Court within sixty days.
Need help with a cancellation notice?
A cancellation order has serious consequences for an organisation's funding and for its governing body. Bring the notice and your records to our legal dispute resolution practice so that the reply and any appeal are prepared in time.
Key takeaways
- Section 14(1) has five grounds: false statements, breach of terms and conditions, public interest, violation of the Act, rules or orders, and no reasonable activity for two consecutive years or becoming defunct.
- A reasonable opportunity of being heard must be given before an order of cancellation.
- A person whose certificate is cancelled is ineligible for registration or prior permission for three years from the date of cancellation.
- An appeal lies to the High Court within sixty days under section 31(2).
- Section 14A (surrender) is a separate route with its own conditions.
Read next
- Section 13: suspension of certificate
- Sections 14A and 15: surrender and management of foreign contribution
- Section 16: renewal of certificate
- Section 31: appeal
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.