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

Sri Ganga Seva Samiti, a registered society in Varanasi, has been receiving foreign donations. The Central Government concludes that its receipt of foreign contribution is likely to affect harmony between religious groups and prohibits it from accepting foreign contribution under the FCRA, 2010. Which provision empowers this prohibition, in respect of a person not already specified in section 3?

Section 9(a) of the FCRA, 2010 empowers the Central Government to prohibit a person or organisation not specified in section 3 from accepting foreign contribution, where acceptance is likely to prejudice, among other things, harmony between religious or social groups.

  1. ASection 9, which lets the Central Government prohibit any person or organisation not specified in section 3 from accepting foreign contributionCorrect
  2. BSection 7, which bars every person from transferring foreign contribution
  3. CSection 17, which requires an FCRA Account in a scheduled bank
  4. DSection 54, which repeals the 1976 Act

Explanation

Section 9(a) allows the Central Government to prohibit any person or organisation not specified in section 3 from accepting foreign contribution. One ground is likely prejudicial effect on harmony between religious, racial, social, linguistic or regional groups, castes or communities. Section 7 concerns transfer, and section 17 concerns bank accounts, so neither is a prohibition power.

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