Sections 35 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 35 is the main penal provision of the Act: whoever accepts foreign contribution in contravention of the Act, or assists another in doing so, can be imprisoned for up to five years, fined, or both. Section 36 adds a power to impose a further fine, of up to five times the value of the thing involved or one thousand rupees, whichever is more, where the thing cannot be confiscated.
This article reads sections 35 and 36 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.
Section 35 punishes whoever accepts, or assists any person, political party or organisation in accepting, any foreign contribution or any currency or security from a foreign source in contravention of the Act, or of any rule or order made under it, with imprisonment up to five years, or fine, or both. Section 36 lets the court, on conviction, impose a fine not exceeding five times the value of the item or one thousand rupees, whichever is more, if the item is not available for confiscation.
Section 35: the main offence
"Whoever accepts, or assists any person, political party or organisation in accepting, any foreign contribution or any currency or security from a foreign source, in contravention of any provision of this Act or any rule or order made thereunder, shall be punished with imprisonment for a term which may extend to five years, or with fine, or with both."
If a notice or complaint under section 35 reaches you, take advice before replying. Our legal dispute resolution team can assess the position and the options, including compounding.
The two ways to commit it
| Way | Text |
|---|---|
| Accepting | Accepts any foreign contribution or any currency or security from a foreign source in contravention of the Act, rule or order |
| Assisting | Assists any person, political party or organisation in accepting any foreign contribution or any currency or security from a foreign source in contravention |
The offence is wide in two directions. On the object side, it covers "any foreign contribution or any currency or security from a foreign source". On the contravention side, it covers contravention of "any provision of this Act or any rule or order made thereunder". So an acceptance that breaches section 3, or is made without registration or prior permission under section 11, or that breaches a prohibition or requirement made under section 9, can fall within section 35. See the article on section 3 and the article on section 11.
Assisting
The words "assists any person, political party or organisation in accepting" reach those who help. A person who arranges, routes or helps to receive foreign contribution for a person barred by section 3 is within them, on the words, if the acceptance contravenes the Act. This links to section 3(2), which separately forbids accepting or delivering currency on behalf of a political party or a person in section 3(1).
The punishment
The penalty is imprisonment up to five years, or fine, or both. The Act does not fix the amount of the fine in section 35; it is left to the court. The offences under the Act require previous sanction before a court takes cognizance (section 40, explained in the article on sections 39 and 40); where a company is the offender, section 39 reaches those in charge of its business. An offence punishable under the Act other than one punishable with imprisonment only can be compounded before prosecution under section 41; see the article on section 41.
Section 38 adds a further consequence for repeat offenders: a person convicted of an offence under section 35 or 37, relating to the acceptance or utilisation of foreign contribution, who is convicted again of such an offence, shall not accept any foreign contribution for five years from the date of the subsequent conviction. See the article on sections 37 and 38.
Section 36: additional fine where the item is not available
Section 36 reads: "Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the court trying a person, who, in relation to any article or currency or security, whether Indian or foreign, does or omits to do any act which act or omission would render such article or currency or security liable to confiscation under this Act, may, in the event of the conviction of such person for the act or omission aforesaid, impose on such person a fine not exceeding five times the value of the article or currency or security or one thousand rupees, whichever is more, if such article or currency or security is not available for confiscation, and the fine so imposed shall be in addition to any other fine which may be imposed on such person under this Act."
The elements:
- A court is trying a person for an act or omission that would render an article, currency or security liable to confiscation.
- The person is convicted.
- The article, currency or security is not available for confiscation.
- The court may impose a fine of up to the greater of five times the value or one thousand rupees.
- The fine is in addition to any other fine under the Act.
The measure is "five times the value of the article or currency or security or one thousand rupees, whichever is more". The one thousand rupees is a floor for the maximum: where five times the value is less than one thousand rupees, the ceiling is one thousand rupees. Confiscation itself is explained in the article on sections 28 to 30. The Act as enacted cites the Code of Criminal Procedure, 1973; the reader should check the current law for the corresponding provision.
Example (invented). Mr. Gopal Menon is convicted under section 35 for accepting foreign currency in contravention of the Act. The currency has been spent and is no longer available for confiscation. The court may impose a fine under section 36 of up to five times the value of the currency, or one thousand rupees if that is more, in addition to the punishment under section 35, which may itself include a fine.
Need help with a notice under the penal provisions?
Penal exposure under the Act depends on the exact acceptance, the source and the contravention alleged. Speak to our legal dispute resolution practice with the notice or complaint and the underlying records.
Key takeaways
- Section 35 punishes accepting, or assisting in accepting, foreign contribution or any currency or security from a foreign source in contravention of the Act, rule or order, with up to five years, or fine, or both.
- Section 36 allows a fine of up to five times the value, or one thousand rupees, whichever is more, on conviction where the item is not available for confiscation, in addition to any other fine.
- Previous sanction is needed for cognizance under section 40; section 41 allows compounding of eligible offences before prosecution.
- Section 38 bars acceptance for five years after a second conviction under section 35 or 37.
Read next
- Sections 33 and 34: false statement and breach of a prohibitory order
- Sections 37 and 38: residual penalty and bar after second conviction
- Section 41: compounding of offences
- Section 3: who cannot accept foreign contribution
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.