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

Jan Seva Trust, registered under the FCRA, 2010, received foreign contribution and then handed part of it to Gram Vikas Samiti, an unrelated body, to run a project. Which statement is correct under the Act as it now stands?

The Trust is prohibited from transferring the foreign contribution to any other person. Section 7, as substituted in 2020, bars every registered or prior-permission holder who receives foreign contribution from transferring it, with no exception for other NGOs, board approval or partial amounts.

  1. ATransfer is allowed if the Samiti is also an NGO
  2. BTransfer is allowed with the Trust's board resolution
  3. CTransfer is allowed if the amount is under half of the contribution
  4. DThe Trust is prohibited from transferring the foreign contribution to any other personCorrect

Explanation

Section 7, as substituted in 2020, says a person who is registered or has prior permission and receives foreign contribution shall not transfer it to any other person. No exception is given for NGOs, board resolutions or part amounts, so those options fail.

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