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

The Central Government is considering a notification prohibiting a named association, which is not among the persons specified in section 3, from accepting foreign contribution. Which condition must be met before it can do so under section 9?

The Government must be satisfied that acceptance of foreign contribution by the association is likely to affect prejudicially one of the listed interests, such as sovereignty and integrity, public interest, election fairness, friendly foreign relations, or harmony between groups. Conviction or return default is not required.

  1. AThe association must have been convicted of an offence
  2. BThe Government must be satisfied that acceptance is likely to prejudicially affect a ground such as public interest or harmony between religious or social groupsCorrect
  3. CThe association must have failed to file an annual return
  4. DThe association must have an income above the prescribed threshold

Explanation

The proviso to section 9 allows a prohibition only if the Central Government is satisfied that acceptance is likely to affect prejudicially sovereignty and integrity, public interest, fairness of elections, friendly relations with a foreign State, or communal harmony. Conviction, return default or income level is not the stated test.

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