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

Lokhit Kalyan Samiti, an FCRA-registered NGO, was convicted under Section 35 for improper utilisation of foreign contribution, and some years later was convicted again of the same kind of offence. Which statement reflects Section 38 of the FCRA, 2010?

The Samiti may not accept any foreign contribution for five years from the date of its subsequent conviction. Section 38 applies on a repeat conviction for offences relating to acceptance or utilisation, and the period runs from the second conviction.

  1. AIt may not accept any foreign contribution for five years from the date of the subsequent convictionCorrect
  2. BIt may not accept foreign contribution for five years from the date of the first conviction
  3. CIt may not accept foreign contribution for life
  4. DIt may accept it only through the New Delhi SBI account during the next five years

Explanation

Section 38 bars a person convicted under section 35 or 37, relating to acceptance or utilisation of foreign contribution, and again convicted of such offence, from accepting foreign contribution for five years from the date of the subsequent (second) conviction. The period runs from the second conviction, not the first, and is not lifelong.

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