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

Sunrise Broadcast Pvt Ltd produces and broadcasts audio-visual news and current affairs programmes through an electronic mode. Its owner proposes to accept funds from a foreign source for the company. Which statement is correct under the FCRA, 2010?

Both the company and its owner are prohibited. Section 3(1)(g) bars companies engaged in producing or broadcasting audio or audio-visual news or current affairs through electronic modes, and section 3(1)(h) extends the bar to their correspondents, columnists, cartoonists, editors and owners.

  1. ABoth the company and its owner are covered by the prohibition on accepting foreign contributionCorrect
  2. BOnly the company is prohibited, but its owner may accept
  3. COnly a registered newspaper's staff are prohibited, so neither is covered
  4. DBoth may accept if the amount is below the notified limit

Explanation

Section 3(1)(g) prohibits an association or company engaged in producing or broadcasting audio or audio-visual news or current affairs programmes through any electronic mode. Section 3(1)(h) extends this to the correspondent, columnist, cartoonist, editor and owner of such a company. So option 2 is wrong, and the Act contains no amount-based exemption.

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