Sections 33 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.
Chapter VIII lists the offences and penalties under the Act. The first two sections cover two different wrongs. Section 33 punishes a person who knowingly gives a false intimation or who obtains prior permission or registration by fraud, false representation or concealment of a material fact. Section 34 punishes a person who deals with an article, currency or security in breach of a prohibitory order served under section 10.
This article reads sections 33 and 34 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change these sections. Later amendments should be checked.
Under section 33, a person who knowingly gives a false intimation under section 9(c) or section 18, or seeks prior permission or registration by fraud, false representation or concealment of material fact, is liable on conviction by a court to imprisonment up to six months, or fine, or both. Under section 34, breach of a prohibitory order under section 10 is punishable with imprisonment up to three years, or fine, or both, with a possible additional fine up to the market value.
Section 33: false statements and fraud
Section 33 reads: "Any person, subject to this Act, who knowingly, (a) gives false intimation under sub-section (c) of section 9 or section 18; or (b) seeks prior permission or registration by means of fraud, false representation or concealment of material fact, shall, on conviction by a court, be liable to imprisonment for a term which may extend to six months or with fine or with both."
| Limb | The act | Provision referred to |
|---|---|---|
| (a) | Gives false intimation | Section 9(c) (intimation required of persons not specified in section 11) or section 18 (intimation by a holder of a certificate or prior approval) |
| (b) | Seeks prior permission or registration by fraud, false representation or concealment of material fact | Sections 11 and 12 |
The key word: "knowingly"
The word governs both limbs. The offence is not made out by an honest mistake in a figure; it needs knowledge that the intimation is false, or the use of fraud, false representation or concealment. Whether knowledge is shown in a case is for the court. A holder should still treat accuracy as a matter of record: reconciled books make an honest error easy to explain and a false statement hard to explain.
If you are facing a notice or a prosecution under these sections, speak to our legal consultation team early.
A drafting slip
Clause (a) refers to "sub-section (c) of section 9". Section 9 has clauses (a) to (e), not sub-sections, and section 48(2)(g) of the Act refers to the same provision as "clause (c) of section 9". The slip is in the Act's own text and is quoted as printed. Read it as a reference to clause (c) of section 9, the power to require intimation of foreign contribution received, which is explained in the article on section 9.
Punishment and procedure
The punishment is imprisonment for a term "which may extend to six months or with fine or with both". The punishment is "on conviction by a court"; section 40 bars a court from taking cognizance of any offence under the Act without the previous sanction of the Central Government or an officer authorised by it, as explained in the article on sections 39 and 40. An offence punishable under the Act, other than one punishable with imprisonment only, may be compounded before prosecution under section 41; see the article on section 41.
The intimation in clause (a) is given under section 18 by a holder; see the article on sections 18 to 20. The fraud limb relates to the application for registration or prior permission under sections 11 and 12; false statements in or about an application are also a ground for cancellation under section 14(1)(a), explained in the article on section 14.
Section 34: breach of a prohibitory order
"If any person, on whom any prohibitory order has been served under section 10, pays, delivers, transfers or otherwise deals with, in any manner whatsoever, any article or currency or security, whether Indian or foreign, in contravention of such prohibitory order, he shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both".
There is an additional penalty: "notwithstanding anything contained in the Code of Criminal Procedure, 1973, the court trying such contravention may also impose on the person convicted an additional fine equivalent to the market value of the article or the amount of the currency or security in respect of which the prohibitory order has been contravened by him or such part thereof as the court may deem fit." The Act as enacted cites the 1973 Code; the reader should check the current law for the corresponding provision.
The three conditions are: a prohibitory order under section 10; service of that order on the person; and a dealing in contravention of it. The order and its service are explained in the article on section 10 and in the rule on service in the article on rule 8. The additional fine is up to "the market value of the article or the amount of the currency or security", or "such part thereof as the court may deem fit": the court may fix a smaller part. The words "may" and "also" leave the additional fine to the court's discretion.
Example (invented). Shanti Niketan Trust is served with a prohibitory order under section 10 on a sum held in its account. A trustee, knowing of the order, withdraws and spends the sum. If convicted, the person is liable under section 34 to imprisonment up to three years, or fine, or both, and the court may impose an additional fine up to the amount involved, or a part of it.
Comparing the two
| Section 33 | Section 34 | |
|---|---|---|
| Wrong | Knowingly false intimation; fraud, false representation or concealment in seeking permission or registration | Dealing with a thing in breach of a served prohibitory order |
| Maximum imprisonment | Six months | Three years |
| Fine | Alternative or additional | Alternative or additional, plus an additional fine up to market value or amount, or part |
| Where to go next | Sections 39, 40, 41 | Sections 36, 40, 41 |
For wider offences, see section 35, which punishes accepting foreign contribution in contravention of the Act, and section 37, the residual penalty; both are in the later articles of this series.
Need help with an allegation under these sections?
An allegation of a false statement or a breach of an order needs prompt, document-based handling. Contact our legal consultation practice with the notice, the intimation or application in question and the supporting books.
Key takeaways
- Section 33 covers knowingly false intimation under section 9(c) or section 18, and seeking prior permission or registration by fraud, false representation or concealment of material fact.
- Punishment under section 33 is imprisonment up to six months, or fine, or both, on conviction by a court.
- Section 34 punishes dealing with an article, currency or security in contravention of a served prohibitory order, with up to three years, or fine, or both.
- An additional fine up to the market value or amount, or a part, may be imposed under section 34.
- Section 33(a) says "sub-section (c) of section 9"; section 48(2)(g) says "clause (c) of section 9".
Read next
- Section 10: prohibitory order
- Sections 35 and 36: punishment for contravention and additional fine
- Sections 39 and 40: offences by companies and sanction for prosecution
- Section 41: compounding of offences
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.