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

Kiran, an FCRA-registered NGO's treasurer, has accepted foreign currency and is asked to deliver it to Sunil, who Kiran has reasonable cause to believe will hand it to a political party. Which provision of the Act is most directly offended if Kiran delivers it?

Section 3(2)(b) is offended. It bars a person resident in India from delivering currency accepted from a foreign source to anyone he knows, or has reasonable cause to believe, is likely to pass it to a political party. The other provisions deal with convictions, cancellation or accounts.

  1. ASection 38, because it fixes a five-year ban on accepting contributions
  2. BSection 15, because it deals with vesting of assets on cancellation
  3. CSection 3(2)(b), which bars delivering foreign-source currency to a person likely to deliver it to a political partyCorrect
  4. DSection 17, because it requires receipt only in an FCRA Account

Explanation

Section 3(2)(b) prohibits a person resident in India from delivering currency accepted from a foreign source to any person if he knows or has reasonable cause to believe that person is likely to deliver it to a political party. Section 38 applies after repeat convictions, section 15 applies after cancellation, and section 17 concerns the receiving account.

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