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

Rohit received foreign currency from a donor abroad on behalf of an organisation that the Central Government has, under Section 9, required to obtain prior permission before accepting foreign contribution. Rohit knows that the person to whom he proposes to deliver the currency intends to pass it on to a different organisation. Which statement is correct under Section 3(3)?

He may not deliver it. Section 3(3) forbids delivering such currency to anyone other than the person for which it was received, and also to anyone whom he knows or reasonably believes intends to deliver it onward to a person other than the intended recipient.

  1. AHe may deliver it, because he is only an intermediary
  2. BHe may deliver it to anyone, if he first informs the Central Government
  3. CHe may not deliver it to a person he knows intends to deliver it to someone other than the organisation for which it was receivedCorrect
  4. DHe may deliver it, but only if the second organisation is also registered

Explanation

Section 3(3) bars a person receiving currency from a foreign source on behalf of a section 9 person or class from delivering it to anyone other than the person for which it was received. It also bars delivery to any other person who he knows, or has reasonable cause to believe, intends or is likely to deliver it to someone other than that intended recipient. Registration of the second organisation is irrelevant.

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