The Central government has revised the compounding penalties for several offences under the Foreign Contribution (Regulation) Act (FCRA), 2010, through a notification issued by the Ministry of Home Affairs (MHA).The orders come under Section 41 of the FCRA, and amend the compounding schedule notified by the MHA in July 2022 and subsequently modified in February 2023. The changes relate to offences involving the receipt and utilisation of foreign contributions and prescribe revised penalties for settling specified violations through compounding proceedings.Under the revised provisions, organisations that spend foreign contributions on administrative expenses beyond the permissible limit of 20 per cent will be required to pay a penalty of Rs 1 lakh or five per cent of the amount spent beyond the limit, whichever is higher.Violations involving the utilisation of foreign contributions in speculative activities will attract a penalty of Rs 1 lakh or 30 per cent of the amount invested in such activities, whichever is higher. In addition, all returns earned from such investments will be recoverable.The notification also prescribes a penalty of Rs 1 lakh or 30 per cent of the amount involved, whichever is higher, for the utilisation of foreign contributions for purposes other than those for which the funds were received.The Centre has also revised the compounding amount for offences involving the acceptance or utilisation of foreign contributions in contravention of Section 11 of the Act. In such cases, the penalty will be Rs 1 lakh or 30 per cent of the foreign contribution received or utilised, whichever is higher.Where foreign contributions are utilised for a purpose, state or Union Territory for which registration or approval has not been granted under the FCRA framework, the penalty will be 1 lakh or 30 per cent of the amount so utilised, whichever is higher.The notification clarifies that the revised provisions will not apply to cases that were disposed of before its publication and that such cases will not be reopened.According to the MHA, the amendments will take effect from the date of publication of the notification in the Gazette of India.