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

Sahyog Trust, a registered public charitable trust in Pune, has an Indian citizen, Mr. Rao, working for it in Dubai. Mr. Rao receives a foreign contribution on behalf of the trust there. A colleague argues the FCRA, 2010 cannot reach him because he is outside India. Under the extent and application provision of the Act, which statement is correct?

The FCRA, 2010 extends to the whole of India and also applies to citizens of India outside India. An Indian citizen working abroad is therefore covered by the Act, and the argument that it cannot reach him because he is outside India is wrong.

  1. AThe Act extends to the whole of India and also applies to citizens of India outside India, so Mr. Rao is coveredCorrect
  2. BThe Act applies only within the territory of India, so Mr. Rao is outside its scope
  3. CThe Act applies to citizens abroad only if they are office bearers of a company
  4. DThe Act applies to citizens abroad only after a separate notification for each country

Explanation

Section 1(2) states that the Act extends to the whole of India and also applies to citizens of India outside India. Mr. Rao is an Indian citizen in Dubai, so the Act applies to him. The option limiting the Act to Indian territory ignores clause (a) of section 1(2).

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