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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Contribution Regulation

A person granted prior permission under Section 11(2) of the FCRA, 2010 is found, after a summary inquiry on information received, to have possibly contravened the Act. What may the Central Government do pending further inquiry?

Pending further inquiry, the Central Government may direct that the person shall not utilise the unutilised foreign contribution or receive the remaining or any additional contribution without its prior approval. This follows a summary inquiry and reason to believe a contravention occurred, under the proviso to Section 11(2).

  1. AProsecute the person immediately and seize all bank accounts
  2. BDirect that the person shall not utilise unutilised foreign contribution or receive remaining or additional contribution without prior approvalCorrect
  3. CTransfer the contribution to another registered person for utilisation
  4. DCancel the Act's applicability to the person for five years

Explanation

The first proviso to Section 11(2) allows the Central Government, after a summary inquiry and having reason to believe there is a contravention, to direct, pending further inquiry, that unutilised contribution not be used and remaining or additional contribution not be received without its prior approval. It does not authorise immediate prosecution or transfer to another person.

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