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

The certificate of Disha Welfare Trust is cancelled. Foreign contribution and assets created from it are in its custody. Which statement is correct?

On cancellation, the foreign contribution and assets created from it vest in the prescribed authority. It may manage the activities in public interest as the Central Government directs, and may use funds or sell assets if funds are inadequate. Return is required only on later registration.

  1. AThey vest in the prescribed authority, which may manage the Trust's activities in public interest as the Central Government directs and may use the funds or dispose of the assets if adequate funds are not available for running the activityCorrect
  2. BThey remain with the Trust's trustees, who may use them for any purpose
  3. CThey vest in the prescribed authority, which must dispose of all assets within six months
  4. DThey vest in the prescribed authority, which must return them to the Trust after three years in all cases

Explanation

Foreign contribution and assets created out of it vest in the prescribed authority. If necessary and in public interest it may manage the activities as the Government directs, and may utilise funds or dispose of assets when adequate funds are lacking. Return is required only if the person is subsequently registered, not automatically after three years, and no six-month disposal rule exists.

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