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

Under the 1976 Act, an association was prohibited from accepting foreign contribution under clause (a) of section 10 of that Act. After the 2010 Act replaced it, what is the effect of section 54?

The association is deemed to be prohibited from accepting foreign contribution under section 9 of the 2010 Act, so far as this is not inconsistent with that Act. Section 54(2)(d) saves the earlier prohibition and the repeal of the 1976 Act does not end it.

  1. AThe prohibition lapses automatically on repeal
  2. BThe prohibition lapses after one year unless renewed
  3. CThe association is deemed prohibited under section 9 of the 2010 Act, in so far as not inconsistent with itCorrect
  4. DThe association becomes a person specified in section 3

Explanation

Section 54(2)(d) saves such a prohibition: the association is deemed prohibited under section 9 of the 2010 Act, to the extent not inconsistent with it. It does not lapse on repeal, and nothing makes it a section 3 person, which is the opposite concept.

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