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

Under the 1976 Act, the Central Government had prohibited the Jan Kalyan Sangh, an association, from accepting foreign contribution under clause (a) of section 10 of that Act. The FCRA, 2010 has since replaced the 1976 Act. What is the status of that prohibition under section 54 of the 2010 Act?

Under section 54(2)(d), an association prohibited under clause (a) of section 10 of the repealed 1976 Act continues to be treated as prohibited under section 9 of the FCRA, 2010, so far as this is not inconsistent with the new Act.

  1. AIt lapses automatically on repeal of the 1976 Act
  2. BIt is deemed an association prohibited under section 9 of the 2010 Act, so far as not inconsistent with itCorrect
  3. CIt is converted into a five-year bar under section 38
  4. DIt continues only if the association obtains an FCRA Account under section 17

Explanation

Section 54(2)(d) saves such prohibitions: an association prohibited under clause (a) of section 10 of the repealed Act is, so far as not inconsistent with the 2010 Act, deemed prohibited under section 9 of the 2010 Act. It does not lapse on repeal, and it is unrelated to the section 38 conviction bar or to bank account rules.

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