CSR and Social Governance · Foreign Funding to Non-Corporate Entities

Persons Prohibited from Accepting Foreign Contribution under FCRA 2010

Updated 11 October 2026 · Fact-checked

Section 3 of FCRA 2010 bars named persons from accepting foreign contribution, such as election candidates, newspaper editors, judges, government servants, legislators and political parties. Section 9 lets the Central Government prohibit other persons or organisations, but only if acceptance is likely to prejudice one of five listed interests.

Understand Persons Prohibited from Accepting Foreign Contribution

The Foreign Contribution (Regulation) Act, 2010 controls how money and other value from foreign sources enter India. The aim is to stop foreign funds from influencing politics, media, the public service or public order. The Act does this in two layers: a fixed list of persons who cannot accept, and a power to add more.

The fixed list is in Section 3(1). No foreign contribution may be accepted by: a candidate for election; a correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; a public servant, Judge, Government servant or employee of a corporation or body controlled or owned by the Government; a member of any Legislature; a political party or its office-bearer; an organisation of a political nature specified by the Central Government under section 5(1); an association or company producing or broadcasting audio news, audio-visual news or current affairs programmes through any electronic or other mass communication mode; and the correspondent, columnist, cartoonist, editor or owner of such an association or company.

For the public servant clause, the Act says public servant has the meaning given in section 21 of the Indian Penal Code. A corporation means one owned or controlled by the Government and includes a Government company under section 2(45) of the Companies Act, 2013.

Section 3(2) and 3(3) close the back door. Each clause of section 3(2) covers a different group of people:

Section 3(2)(a) covers a person resident in India and an Indian citizen resident outside India. They cannot accept foreign contribution, or acquire or agree to acquire currency from a foreign source, on behalf of a political party or a Section 3(1) person.
Section 3(2)(b) covers a person resident in India. They cannot deliver currency accepted from a foreign source to anyone they know, or have reasonable cause to believe, intends or is likely to deliver it to a political party or a Section 3(1) person.
Section 3(2)(c) covers an Indian citizen resident outside India. They cannot deliver such currency directly to a political party or a Section 3(1) person. They also cannot deliver it to anyone they know, or have reasonable cause to believe, is likely to pass it on to them.

Section 3(3) says a person who receives foreign currency on behalf of a person or class covered by section 9 must not deliver it to anyone other than the person for whom it was received, or to anyone likely to pass it to a person other than that intended person.

Section 9 is the flexible layer. The Central Government may prohibit any person or organisation not already in section 3 from accepting foreign contribution. It may also require prior permission or an intimation (a report of receipt and use) from persons not covered by section 11 or section 6. The Government can do this only if it is satisfied that acceptance is likely to affect prejudicially one of five interests.

Key rules to remember

Section 3(1) absolute bar: Listed person (candidate, newspaper staff, public servant/Judge/Government servant, legislator, political party, political-nature organisation, news broadcaster) → no foreign contribution may be accepted; The bar applies by status. The Central Government may, by order under section 50, exempt a person from the Act's provisions in the general public interest. This power does not extend to a political party or a candidate for election.
Section 9 proviso: five grounds: Prohibition or requirement only if acceptance is likely to affect prejudicially: (i) sovereignty and integrity of India; (ii) public interest; (iii) freedom or fairness of election to any Legislature; (iv) friendly relations with any foreign State; (v) harmony between religious, racial, social, linguistic or regional groups, castes or communities; The Central Government must be satisfied on at least one ground. For foreign hospitality, the test is acceptance of hospitality by the person.
Section 9 powers (a) to (e): (a) prohibit acceptance; (b) prior permission for foreign hospitality; (c) intimation of contribution received and its use; (d) prior permission for section 11(1) persons; (e) intimation of foreign hospitality; Clause (a) covers persons not specified in section 3. Clause (c) covers persons not specified in section 11. Clause (d) covers persons specified in section 11(1). Clauses (b) and (e) cover persons not specified in section 6.
Section 3(2) conduit rule: 3(2)(a): no person resident in India, and no Indian citizen resident outside India, shall accept foreign contribution, or acquire or agree to acquire currency from a foreign source, on behalf of a political party or a section 3(1) person. 3(2)(b): no person resident in India shall deliver currency accepted from a foreign source to any person if he knows or has reasonable cause to believe that the person intends, or is likely, to deliver it to a political party or a section 3(1) person. 3(2)(c): no Indian citizen resident outside India shall deliver such currency directly to a political party or a section 3(1) person, or to any other person if he knows or has reasonable cause to believe that the person intends, or is likely, to deliver it to them.; 3(2)(a) covers residents in India and Indian citizens abroad. 3(2)(b) covers only residents in India. 3(2)(c) covers only Indian citizens resident outside India.
Section 38 repeat offender bar: Second conviction under section 35 or 37 (acceptance or utilisation offences) → no foreign contribution for 5 years from the date of the subsequent conviction; Applies to a person convicted again of the same kind of offence.
Section 50 exemption: Central Government may exempt any person, association or organisation (not a political party) or individual (not a candidate for election) by order, in the general public interest, with conditions; The order can be revoked or modified as often as needed.

How to solve Persons Prohibited from Accepting Foreign Contribution questions

Most questions give a person or a fact pattern and ask whether foreign contribution can be accepted. Use a fixed order: status, section 3, section 9, conclusion.

1Identify the person and the capacity in which they act: candidate, journalist, Government servant, legislator, political party, broadcaster, NGO or other.
2Check the section 3(1) list clause by clause. If the person fits, state that acceptance is prohibited by section 3(1).
3If the person is an intermediary, apply section 3(2): were they receiving for a political party or a section 3(1) person, or passing money on to one?
4If the person is not in section 3, ask whether the Central Government has used section 9. Check whether an order, a permission requirement or an intimation requirement exists.
5Test the section 9 order against the proviso: is there a likely prejudicial effect on sovereignty and integrity, public interest, election freedom or fairness, friendly relations with a foreign State, or communal harmony?
6Add related consequences if the facts show a breach: section 10 order on custody of the contravening funds, section 38 five-year bar on repeat conviction.
7Check whether section 50 exemption or section 11 registration changes the answer.
8Write a clear conclusion in one or two lines, tied to the facts.

Quickest way: Two-gate check

When to use it: Use for short case questions where you must decide quickly whether a person can accept foreign contribution.

Gate 1: Is the person on the section 3(1) list? If yes, write 'prohibited' and cite section 3(1).
Gate 2: If not, is there a section 9 order against them? Name the five grounds in the proviso.
Add a one-line note on conduits under section 3(2) if the person is receiving for someone else.
Close with the conclusion and, if relevant, the section 10, 38 or 50 consequence.

Common mistakes in Persons Prohibited from Accepting Foreign Contribution

Treating the section 3 list as covering only political parties and candidates.
Students remember the political angle and forget the media and public service clauses.
Fix: Learn the list in groups: election and politics, media, public service and Judges, legislators, news broadcasters.
Saying section 9 covers persons already listed in section 3.
Both sections deal with prohibition and are read together loosely.
Fix: Section 9(a) applies to persons not specified in section 3. Section 3 is the Act's own bar. Section 9 is a Government power to add.
Stating fewer than five grounds, or inventing others, for a section 9 prohibition.
Students recall only 'sovereignty' and 'public interest'.
Fix: Memorise all five: sovereignty and integrity, public interest, election freedom or fairness, friendly relations with a foreign State, communal and regional harmony.
Ignoring section 3(2) when the person is only an agent or courier.
Students think the bar applies only to the final recipient.
Fix: Check whether the person accepts or delivers money on behalf of a political party or section 3(1) person, or with knowledge or reasonable cause to believe it will reach them.
Confusing foreign contribution and foreign hospitality.
Section 9 deals with both, in different clauses.
Fix: Clauses (a), (c), (d) concern contribution. Clauses (b) and (e) concern hospitality. Section 6 separately restricts hospitality for legislators, party office-bearers, Judges and Government servants abroad.
Giving the section 38 bar as a first-offence penalty.
The five-year figure is remembered without its condition.
Fix: Section 38 applies only on a subsequent conviction for the same type of offence relating to acceptance or utilisation, and runs from that conviction.

Worked examples

Example 1

Rohan Mehta is the editor of a registered daily newspaper in Pune. A foreign foundation offers him ₹12,00,000 to support the paper's investigative reporting. Can he accept it? Would your answer change if he is the owner of a registered newspaper and not the editor?

Show the solution

Provision: section 3(1)(b) bars any correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper from accepting foreign contribution.
Analysis: Rohan is an editor of a registered newspaper, so he falls directly in clause (b). The purpose of the funding does not matter, because the bar depends on status.
If he were the owner, the result is the same, since 'owner' is also listed in clause (b).
Section 3(2): Rohan also must not receive the money on behalf of another section 3(1) person or pass it to one.
Consequence: if he accepts, the Central Government can act under section 10 against the funds in his custody, and the Act's penal provisions may apply.

Answer: Rohan cannot accept the ₹12,00,000. Section 3(1)(b) prohibits editors and owners of a registered newspaper from accepting foreign contribution. The answer is the same if he is the owner.

Example 2

Janhit Seva Samiti, a Nagpur society, is not listed in section 3. The Central Government is satisfied that its foreign funding is likely to disturb harmony between two religious communities in a district. What can the Government do, and on what basis?

Show the solution

Provision: section 9(a) lets the Central Government prohibit any person or organisation not specified in section 3 from accepting foreign contribution.
Check the condition: the proviso says it can act only if satisfied that acceptance is likely to affect prejudicially one of five listed interests.
Analysis: harmony between religious, racial, social, linguistic or regional groups, castes or communities is ground (v). The facts match it.
Alternatives: instead of a full ban, the Government may use a milder power. Which one depends on the samiti's section 11 status, which the facts do not state. Section 9(c) applies to persons not specified in section 11 and lets the Government require intimation of the amount received, its source and its use. Section 9(d) applies to persons specified in section 11(1), that is, those with a definite cultural, economic, educational, religious or social programme, and lets the Government require prior permission before accepting foreign contribution.
If the samiti already holds funds accepted in contravention, section 10 allows an order prohibiting dealing with them.

Answer: The Government can prohibit the samiti from accepting foreign contribution under section 9(a), because ground (v) of the proviso, harmony between groups, is satisfied. Instead of a ban, it may use section 9(c) if the samiti is not a section 11 person, or section 9(d) if it is a section 11(1) person.

Exam tips

Write the section number with every point. Cases are provision, analysis, conclusion, so cite section 3(1) or 9 first.
Learn the section 3(1) list as grouped clauses. Examiners often change the facts to test one clause, such as a Government company employee or a news broadcaster.
List all five grounds of the section 9 proviso in full. Partial lists lose marks.
Separate the Act's own bar (section 3) from the Government's power (section 9) in one clear sentence.
Mention section 3(2) conduit liability in agent or courier fact patterns, and section 50 if the question hints at exemption.

Practice questions from Foreign Funding to Non-Corporate Entities

Persons Prohibited from Accepting Foreign Contribution in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ExecutiveProhibition on Acceptance of Foreign Contribution

Persons Prohibited from Accepting Foreign Contribution: frequently asked questions

Who cannot accept foreign contribution under FCRA 2010?

Section 3(1) bars election candidates, newspaper correspondents, columnists, cartoonists, editors, owners, printers and publishers, public servants, Judges and Government servants, employees of Government-owned or controlled bodies, members of any Legislature, political parties and their office-bearers, organisations of a political nature, and news broadcasters with their editors and owners.

What does Section 9 of FCRA 2010 allow the Central Government to do?

It can prohibit persons not covered by section 3 from accepting foreign contribution, and require prior permission or intimation for foreign contribution or foreign hospitality in specified cases. It can act only when satisfied that acceptance is likely to prejudicially affect one of the five listed interests.

What are the grounds for prohibiting foreign contribution under Section 9?

The five grounds are sovereignty and integrity of India, public interest, freedom or fairness of election to any Legislature, friendly relations with a foreign State, and harmony between religious, racial, social, linguistic or regional groups, castes or communities.

Can the Government exempt someone from the FCRA prohibitions?

Section 50 lets the Central Government exempt any person, association or organisation, other than a political party, or any individual other than a candidate for election, from all or some provisions of the Act. It must think this necessary or expedient in the general public interest, and it can attach conditions and revoke or modify the order.