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

Dharmarth Sangh was convicted of an offence under section 35 relating to the utilisation of foreign contribution. Three years later, on 10 March 2026, it was again convicted of an offence under section 37 relating to the acceptance or utilisation of foreign contribution. Which consequence follows under section 38?

The Sangh cannot accept any foreign contribution for five years from 10 March 2026. Section 38 imposes this bar on a person convicted again of an offence relating to acceptance or utilisation of foreign contribution, and the period runs from the date of the subsequent conviction.

  1. AIt may not accept any foreign contribution for five years from 10 March 2026Correct
  2. BIt may not accept foreign contribution for three years from the first conviction
  3. CIt may not accept foreign contribution for five years from the date of the first conviction
  4. DIt may accept foreign contribution after paying a penalty fixed by the court

Explanation

Section 38 applies to a person previously convicted under section 35 or 37 for such an offence who is again convicted of such an offence. The five-year bar on accepting foreign contribution runs from the date of the subsequent conviction, here 10 March 2026, not from the first conviction. No penalty-for-permission route exists in the section.

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