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Consider the following statements regarding Foreign Contribution (Regulation) Act.
  1. The Act prohibits receipt of foreign funds by candidates for elections, journalists and media broadcast companies and organisations of a political nature.
  2. The law was enacted during the Economic Reforms in 1991.
  3. Once granted, FCRA registration is valid for one year and NGOs have to apply for renewal before the expiry of registration.
How many of the above statements is/are correct?
  • a)
    Only one 
  • b)
    Only two 
  • c)
    All three 
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Foreign Contribution (Regu...
Only Statement 1 is correct.
  • FCRA seeks to “regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit [such] acceptance and utilisation…for any activities detrimental to the national interest…”
  • The law was enacted during the Emergency in 1976.
  • The Act prohibits receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of legislature and political parties or their office-bearers, and organisations of a political nature.
  • FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
  • Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant, and accordingly processes the application. The MHA is required to approve or reject the application within 90 days — failing which it is expected to inform the NGO of the reasons for the same.
  • Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.
  • The government reserves the right to cancel the FCRA registration of any NGO if it finds it to be in violation of the Act. Registration can be cancelled for a range of reasons including, if “in the opinion of the Central Government, it is necessary in the public interest to cancel the certificate”. Once the registration of an NGO is cancelled, it is not eligible for re-registration for three years. All orders of the government can be challenged in the High Court.
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Consider the following statements regarding Foreign Contribution (Regulation) Act. The Act prohibits receipt of foreign funds by candidates for elections, journalists and media broadcast companies and organisations of a political nature. The law was enacted during the Economic Reforms in 1991. Once granted, FCRA registration is valid for one year and NGOs have to apply for renewal before the expiry of registration.How many of the above statements is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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