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

After its certificate was cancelled, Asha Vikas Society's assets vested in the prescribed authority. Two years later the Society is granted fresh registration under the Act. What must the authority do?

The authority must return the foreign contribution and the assets vested in it to the person if that person is subsequently registered under the Act. The return is mandatory on registration and is not conditional on a penalty or limited to cash.

  1. ARetain the assets permanently as they vested by cancellation
  2. BReturn the foreign contribution and assets vested in it to the SocietyCorrect
  3. CReturn only the cash and sell the assets
  4. DReturn the assets only after the Society pays a penalty

Explanation

The authority must return the foreign contribution and assets vested in it if the person is subsequently registered under the Act. No penalty condition or cash-only rule appears in the provision. Note the three-year ineligibility after cancellation means such registration would ordinarily arise only after that period, but the return rule applies once registration occurs.

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