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

Ramesh Kulkarni was convicted under section 35 for misusing foreign contribution. Years later he is convicted again of the same kind of offence relating to acceptance or utilisation of foreign contribution. What is the consequence under section 38?

He is barred from accepting any foreign contribution for five years, counted from the date of the subsequent (second) conviction. Section 38 applies once a person already convicted under section 35 or 37 is convicted again for an offence relating to acceptance or utilisation of foreign contribution.

  1. AHe cannot accept any foreign contribution for five years from the date of the subsequent convictionCorrect
  2. BHe cannot accept any foreign contribution for five years from the date of the first conviction
  3. CHe cannot accept foreign contribution for three years from the date of the subsequent conviction
  4. DHe may accept it only through an FCRA Account at a scheduled bank

Explanation

Section 38 applies to a person convicted under section 35 or 37 for an offence relating to acceptance or utilisation, who is again convicted of such offence. The five-year bar runs from the date of the subsequent conviction, not the first, which makes the first-conviction option wrong.

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