Sections 53 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 53 allowed the Central Government to remove difficulties in giving effect to the Act by order, but only within two years from the commencement of the Act. Section 54 repeals the Foreign Contribution (Regulation) Act, 1976 and saves seven things done or granted under it, so they continue under the 2010 Act.
This article reads sections 53 and 54 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020); no paragraph of that Amendment Act changes these sections. No date of commencement of the 2010 Act is stated here, because section 1(3) leaves it to a notification not held among the texts consulted; see the article on section 1. Later amendments should be checked. If an old permission or order is part of your record, a legal consultation can help trace it.
Section 53(1): if any difficulty arises in giving effect to the Act, the Central Government may by order published in the Official Gazette make provisions not inconsistent with the Act to remove it, but no such order after two years from the commencement of the Act. Every such order is laid before Parliament (s.53(2)). Section 54 repeals the 1976 Act and saves actions, permissions, prohibitions, orders and exemptions under it as deemed to be under the 2010 Act, with the General Clauses Act, 1897 continuing to apply.
Section 53: power to remove difficulties
| Sub-section | Text |
|---|---|
| (1) | If any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the Act as may appear necessary for removing the difficulty |
| Proviso | No order shall be made under the section after the expiry of two years from the commencement of the Act |
| (2) | Every order made under the section shall be laid, as soon as may be after it is made, before each House of Parliament |
Four points:
- Not inconsistent with the Act. An order under section 53 cannot override the Act. It only fills a gap.
- Time-limited. The proviso counts two years from the commencement of the Act. The commencement date is not stated in this article, and the texts consulted hold no order made under section 53, so none is described.
- Parliament. Section 53(2) requires laying "as soon as may be after it is made". It does not provide the thirty-day period, the modification procedure or the session rule that section 49 sets for rules and for orders under section 5.
- A spent power. Because the proviso fixes a period from commencement, this power is a matter of history. Do not rely on it for a present difficulty; take advice.
Section 54(1): the repeal
"The Foreign Contribution (Regulation) Act, 1976 (hereafter referred to as the repealed Act) is hereby repealed." Section 54(2) then says "Notwithstanding such repeal", the items below continue. Section 54(3) adds a General Clauses Act saving.
Section 54(2): what continues from the repealed Act
| Clause | Under the repealed Act | Under the 2010 Act |
|---|---|---|
| (a) | Anything done or action taken or purported to have been done or taken | Deemed done or taken under the corresponding provisions of this Act, so far as not inconsistent with it |
| (b) | An organisation of a political nature, not being a political party, to whom prior permission was granted under section 5 of the repealed Act | Continues to be an organisation of a political nature, not being a political party, under clause (f) of section 3(1) of this Act, till the permission is withdrawn by the Central Government |
| (c) | Permission to accept foreign hospitality granted under section 9 of the repealed Act | Deemed to be permission under section 6 of this Act until withdrawn by the Central Government |
| (d) | An association prohibited from accepting any foreign contribution under clause (a) of section 10 of the repealed Act | Deemed, so far as not inconsistent with this Act, to be an association prohibited under section 9 of this Act |
| (e) | Permission obtained under clause (b) of section 10 of the repealed Act | Deemed, so far as not inconsistent with this Act, to be the permission until withdrawn by the Central Government |
| (f) | An order issued under section 12 of the repealed Act | Deemed to be an order issued under section 10 of this Act |
| (g) | An order issued under section 31 of the repealed Act exempting any association or any individual | Deemed to be an order under section 50 of this Act till varied or revoked |
Reading the clauses
- Clause (a) is the general saving. Its test is "in so far as it is not inconsistent with the provisions of this Act": action under the old law survives only to the extent the new law is consistent with it.
- Clause (b) matters to organisations that the earlier law had permitted as organisations of a political nature. They stay in that class under section 3(1)(f) until the permission is withdrawn. Section 3 is explained in the article on section 3.
- Clause (c) keeps a foreign hospitality permission alive as a section 6 permission. See the article on section 6.
- Clauses (d) and (e) carry over a prohibition and a permission in the same way, both "in so far as" they are not inconsistent with the 2010 Act.
- Clause (f) treats an order under section 12 of the old Act as an order under section 10 of the new one, the prohibitory order explained in the article on section 10.
- Clause (g) treats an old exemption order as a section 50 order; see the article on sections 50 to 52.
Rule 9(5): applications pending under the 1976 Act
The Rules add a matching provision. Rule 9(5) says that, notwithstanding sub-rules (1) to (4), every application for registration or prior permission under the 1976 Act but not disposed of before the commencement of the Rules "shall be deemed to be an application for registration or prior permission, as the case may be, under these rules", subject to the applicant furnishing the prescribed fees. This is as printed in the third-party consolidation consulted; see the article on rule 9 and confirm against the official text.
Section 54(3): the General Clauses Act, 1897
"Save as provided in sub-section (2), mention of particular matters in that sub-section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897, with regard to the effect of repeal." In plain terms, the seven items are examples. Section 6 of the General Clauses Act, 1897 continues to apply to the effect of the repeal on other matters. This article does not describe that section; read it in the General Clauses Act itself.
Example (invented). The Navjyoti Mahila Mandal holds a letter granting permission to accept foreign hospitality that was issued under section 9 of the repealed Act. Under section 54(2)(c) that permission is deemed to be permission under section 6 of the 2010 Act, until the Central Government withdraws it. The Mandal should keep the letter with its records and not assume it covers matters beyond its words.
Need help tracing an older permission or order?
If your records include a permission, prohibition or order from the period of the earlier Act, it helps to establish what survives under section 54(2) and what has since been replaced. Speak to our legal consultation team and bring the old documents.
Key takeaways
- Section 53 allowed removal-of-difficulties orders only within two years from the commencement of the Act and only if not inconsistent with it.
- Section 54(1) repeals the Foreign Contribution (Regulation) Act, 1976.
- Section 54(2) deems seven classes of things done or granted under the old Act to continue under the 2010 Act, in most cases only so far as not inconsistent with it.
- Old exemption orders are deemed section 50 orders until varied or revoked.
- Section 54(3) preserves the general application of section 6 of the General Clauses Act, 1897.
Read next
- Sections 50 to 52: power to exempt, Government transactions and other laws
- Sections 48 and 49: power to make rules and laying before Parliament
- Section 1: short title, extent, application and commencement
- Section 6: foreign hospitality needs prior permission
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.