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

Rohan, an Indian citizen working in Dubai, receives a donation from a foreign friend and passes it on to a political body in India. His lawyer asks whether the Foreign Contribution (Regulation) Act, 2010 can apply to Rohan at all. Which statement reflects the Act's extent and application?

The Act extends to the whole of India and also applies to citizens of India outside India. So Rohan, an Indian citizen in Dubai, can be covered. Applicability does not depend on physical presence in India or on holding a registration certificate.

  1. AThe Act applies only to persons physically present within the territory of India
  2. BThe Act extends to the whole of India and also applies to citizens of India outside IndiaCorrect
  3. CThe Act applies to citizens of India outside India only if they hold a certificate of registration
  4. DThe Act applies to foreign nationals in India but never to Indian citizens abroad

Explanation

Section 1(2) states that the Act extends to the whole of India and also applies to citizens of India outside India and to associate branches or subsidiaries outside India of Indian companies or bodies corporate. Rohan, being an Indian citizen abroad, is covered. Registration is not a condition for applicability.

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