Foreign Contribution Regulation Act (FCRA)

WHY IN NEWS?

The Open Society Foundations (OSF), an international grant-making network promoted by billionaire philanthropist George Soros, has moved the Delhi High Court against the Centre’s decision to place it under a “watch list” for funding NGOs and associations that are not registered under the Foreign Contribution Regulation Act (FCRA).

ABOUT FOREIGN CONTRIBUTION REGULATION ACT (FCRA)

• The Foreign Contribution (regulation) Act, 2010 is an act of the Parliament whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.
• It is designed to correct shortfalls in the predecessor act of 1976.
• Salient Features
• Any organisation of a political nature and any association or company engaged in the production and broadcast of audio or audiovisual news or current affairs programme have been placed in the category prohibited to accept foreign contribution.
• Provisions for suspension as well as cancellation of registration granted for violation of the provisions of the Act.
• No funds other than foreign contribution shall be deposited in the FC account to be separately maintained by the associations etc. Every bank shall report to such authority, as may be prescribed, the amount of foreign remittance received, sources and manner and other particulars.
• Any person contravening the provisions of the Act shall be punishable with imprisonment for a term which may extend to five years or with fine or with both.
• As defined in Section 3(1) of FCRA, 2010, the following are prohibited to receive foreign contribution:

                (a) candidate for election

                (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper

                (c) Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government

                (d) member of any legislature

                (e) political party or office bearer thereof

                (f) organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government

                (g) association or company engaged in the production or broadcast of audio news or audio visual news or current affairs

                      programmes through any electronic mode, or any other electronic form or any other mode of mass communication

               (h) correspondent or columnist, cartoonist, editor, owner of the association or company referred to in point (g)

               (i) Individuals or associations who have been prohibited from receiving foreign contribution

Prelims Question

Q. Which of the following is/are prohibited to receive foreign contribution under FCRA, 2010?
1. sportspersons
2. editor or publisher of a registered newspaper
3. member of any legislature
Select the correct answer using the code given below:
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1,2 and 3

Answer to the Prelims Question