Skip to content

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

Gramin Vikas Trust's FCRA certificate was suspended, and the suspension is still continuing. The trust now files a fresh application for a certificate. Which statement is correct under section 12 of the FCRA, 2010?

The trust is not eligible. The Act says a person whose certificate has been suspended cannot be granted a certificate or prior permission if the suspension continues on the date of making the application, regardless of its activities or accounts.

  1. AThe application must be allowed if the trust shows reasonable activity
  2. BThe trust is not eligible for grant of certificate or prior permission while the suspension continues on the date of making the applicationCorrect
  3. CThe trust is eligible but must pay a higher fee
  4. DThe trust is eligible if it opens a new FCRA Account

Explanation

The second proviso to section 12(3) provides that a person is not eligible for a certificate or prior permission if his certificate has been suspended and the suspension continues on the date of making the application. Reasonable activity under section 12(4)(b) is only one condition and cannot cure this bar. Opening a new account is irrelevant to eligibility.

Did you get it right without looking?

One question tells you little. A timed set on Law relating to Foreign Contribution Regulation shows your real accuracy, how long you take and where you lose marks.

Practise Law relating to Foreign Contribution RegulationFree diagnostic mock

More Law relating to Foreign Contribution Regulation questions