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

A trust, Seva Bharati, has no FCRA registration and has so far received no foreign contribution. The Central Government is satisfied that its accepting foreign contribution would prejudicially affect public interest. Which action does section 9 permit the Government to take?

The Government may prohibit the trust from accepting any foreign contribution. Section 9 allows this against persons not specified in section 3 where it is satisfied that acceptance is likely to prejudicially affect public interest or other listed grounds. It does not authorise seizing domestic accounts or cancelling a certificate.

  1. AProhibit it from accepting any foreign contributionCorrect
  2. BConfiscate its domestic bank accounts
  3. CDirect it to transfer its funds to a registered person
  4. DCancel its registration certificate under section 9

Explanation

Section 9(a) lets the Central Government prohibit any person or organisation not specified in section 3 from accepting foreign contribution, provided it is satisfied that acceptance is likely to prejudicially affect grounds such as public interest. Section 9 does not provide for confiscating domestic accounts or cancelling a certificate, and the trust has none to cancel.

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