FCRA Query: Transfer of Immovable Assets
Shriram
(Querist) 08 September 2008
This query is : Resolved
I have a quick query regarding FCRA. Your response is highly appreciated.
Situation:
I represent a volunteer group called Asha for education [“Asha”] (http://www.ashanet.org) that does genuine work in the field of education. We have an FCRA account and used these funds for some building construction in Kanpur for a "school on human values" that ran for a period of time. This school was a 'unit' of Asha itself. (not a different NGO) These funds have been fully utilized more than 10 yrs ago and the 'use certificate' has been audited, submitted and closed.
The people behind the "school on human values" have now formed a separate trust (i.e. separate from Asha) and Asha wishes to let them keep ("donate") the said infrastructure to them to continue their activities independently.
Query:
Is it required for this new trust (different from Asha) to also have an FCRA account to be able to take/keep ownership of these immovable assets that were originally funded using foreign funds? The trust will not be receiving any further foreign funds from Asha.
Thanks very much,
Shriram, Pune.
Manish Singh
(Expert) 15 September 2008
No the new trust need not have FCRA account since they are not taking any foreign donation but instead staring a new trust with donated treasure.
