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

Asha Foundation, a Pune trust with a definite educational programme, has no FCRA registration and wants to accept foreign contribution. Under the FCRA, 2010, what must it do before accepting the money?

Such a person must hold a certificate of registration from the Central Government. If it is not registered, it may accept foreign contribution only after obtaining the Central Government's prior permission. Acceptance without either approval is not allowed under the Act.

  1. AObtain a certificate of registration, or if not registered, obtain prior permission of the Central GovernmentCorrect
  2. BAccept the money and inform the Central Government within a year
  3. COpen an FCRA Account and accept the money without any other approval
  4. DObtain permission from the State Government of Maharashtra

Explanation

Section 11(1) bars a person with a definite cultural, economic, educational, religious or social programme from accepting foreign contribution without a certificate of registration. Section 11(2) allows an unregistered person to accept it only after obtaining prior permission of the Central Government. Option C is wrong because an FCRA Account is only required with the application, and it does not replace registration or permission.

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