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

Lokhit Samiti applied for an FCRA certificate. The Central Government did not grant the certificate within ninety days of receiving the application. What does the Act require?

If the certificate or prior permission is not granted within the ordinary ninety-day period, the Central Government must communicate its reasons to the applicant. The Act does not provide for deemed grant, so the applicant cannot treat silence as approval.

  1. AThe certificate is deemed granted on the ninety-first day
  2. BThe application is deemed rejected without any communication
  3. CThe Central Government must communicate the reasons for not granting it to the applicantCorrect
  4. DThe applicant may begin accepting foreign contribution provisionally

Explanation

Section 12(3) says the Government may ordinarily act within ninety days. The first proviso says that if it does not grant the certificate or permission within that period, it shall communicate the reasons to the applicant. There is no deemed grant, so option A is wrong.

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