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With reference to the Foreign Contribution (Regulation) Act (FCRA), consider the following statements:
1. The Supreme Court recently upheld amendments introducing restrictions in the Foreign Contribution (Regulation) Act (FCRA) while holding that no one has a fundamental or absolute right to receive foreign contributions.
2. The Supreme Court upheld the mandatory provision of the production of Aadhaar card for registration.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
With reference to the Foreign Contribution (Regulation) Act (FCRA), co...
The Supreme Court upheld amendments introducing restrictions in the Foreign Contribution (Regulation) Act (FCRA) while holding that no one has a fundamental or absolute right to receive foreign contributions.
- In a judgment that may hit non-governmental organisations (NGOs) working at the grass-root level with no direct link to foreign donors, the court reasoned that unbridled inflow of foreign funds may destabilise the sovereignty of the nation.
- The restrictions involve a bar on using operational FCRA accounts to get foreign contributions and mandatory production of the Aadhaar card for registration under the FCRA.
- They require NGOs and recipients to open a new FCRA account at a specified branch of the State Bank of India in New Delhi as a “one-point entry” for foreign donations.
- Free and uncontrolled inflow of foreign funds has the potential to impact the socio-economic structure and polity of the country.
- The court said charity could be found at home. NGOs could look within the country for donors.
- Unregulated inflow of foreign donations would only indicate that the government was incapable of looking after its own affairs and needs of its citizens.
- The amendments do not prohibit inflow of foreign contributions, but are a regulatory measure to permit acceptance by registered persons or persons having prior permission to do so with condition that they must themselves utilise the entire contribution.
- However, the court read down one of the provisions — Section 12 (A) — of the 2020 Amendment Act, which mandated the production of Aadhaar card for registration.
Hence only statement 1 is correct.
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With reference to the Foreign Contribution (Regulation) Act (FCRA), co...
Overview of the FCRA and Supreme Court Rulings
The Foreign Contribution (Regulation) Act (FCRA) regulates the acceptance and utilization of foreign contributions by individuals and organizations in India. Recently, the Supreme Court delivered significant rulings on amendments to this act.
Statement 1: Supreme Court's Ruling on Right to Foreign Contributions
- The Supreme Court upheld amendments to the FCRA, emphasizing that there is no fundamental or absolute right for entities to receive foreign contributions.
- This statement is correct as the court acknowledged the government's right to impose regulations on foreign funding, particularly in the context of national interest and security.
Statement 2: Aadhaar Requirement for Registration
- The court also addressed the mandatory provision for the production of Aadhaar cards for registration under the FCRA.
- However, the Supreme Court did not specifically uphold this provision in its rulings, leading to ambiguity about its acceptance.
- Thus, this statement is incorrect since the court's focus was primarily on the broader regulatory framework rather than on the Aadhaar requirement.
Conclusion
Based on the analysis:
- Statement 1 is correct.
- Statement 2 is incorrect.
Therefore, the correct answer is option a) 1 only. This reflects the court's stance on the regulation of foreign contributions while clarifying the limitations on the right to receive such contributions.
The Foreign Contribution (Regulation) Act (FCRA) regulates the acceptance and utilization of foreign contributions by individuals and organizations in India. Recently, the Supreme Court delivered significant rulings on amendments to this act.
Statement 1: Supreme Court's Ruling on Right to Foreign Contributions
- The Supreme Court upheld amendments to the FCRA, emphasizing that there is no fundamental or absolute right for entities to receive foreign contributions.
- This statement is correct as the court acknowledged the government's right to impose regulations on foreign funding, particularly in the context of national interest and security.
Statement 2: Aadhaar Requirement for Registration
- The court also addressed the mandatory provision for the production of Aadhaar cards for registration under the FCRA.
- However, the Supreme Court did not specifically uphold this provision in its rulings, leading to ambiguity about its acceptance.
- Thus, this statement is incorrect since the court's focus was primarily on the broader regulatory framework rather than on the Aadhaar requirement.
Conclusion
Based on the analysis:
- Statement 1 is correct.
- Statement 2 is incorrect.
Therefore, the correct answer is option a) 1 only. This reflects the court's stance on the regulation of foreign contributions while clarifying the limitations on the right to receive such contributions.
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With reference to the Foreign Contribution (Regulation) Act (FCRA), consider the following statements:1. The Supreme Court recently upheld amendments introducing restrictions in the Foreign Contribution (Regulation) Act (FCRA) while holding that no one has a fundamental or absolute right to receive foreign contributions.2. The Supreme Court upheld the mandatory provision of the production of Aadhaar card for registration.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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