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

The Central Government wants to prohibit a trust from accepting foreign contribution under section 9(a) of the FCRA, 2010. Before doing so, which condition must it satisfy?

The Central Government must be satisfied that acceptance of foreign contribution by the trust is likely to affect prejudicially a listed interest, such as sovereignty and integrity of India, public interest, election fairness, friendly foreign relations, or communal harmony, as the proviso to section 9 requires.

  1. AThat the trust has been convicted twice under section 35
  2. BThat the trust's acceptance is likely to affect prejudicially a specified interest such as sovereignty and integrity of India, public interest, or freedom or fairness of electionsCorrect
  3. CThat the trust has first surrendered its certificate
  4. DThat the trust holds an FCRA Account at the State Bank of India, New Delhi

Explanation

The proviso to section 9 says no prohibition can be made unless the Government is satisfied that acceptance is likely to affect prejudicially the listed interests: sovereignty and integrity, public interest, fairness of elections, friendly relations with a foreign State, or communal harmony. Prior conviction is the separate basis in section 38, not a precondition of section 9.

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