Prohibitory Orders under FCRA

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Questions and Answers

What must be done after a prohibitory order is issued under the Act?

Report it to the police.

Serve it on the person prohibited. (correct)

Ignore it if the person is a business entity.

Publish it in the local newspaper.

Which method is NOT specified for serving a prohibitory order?

Delivery through a police officer. (correct)

Sending by registered post.

Tendering to the authorized agent.

Affixing on the outer door of premises.

In what context does the provision of section 7 of the Unlawful Activities (Prevention) Act, 1967 apply?

Only to financial transactions.

To articles, currency, or securities received in contravention of the Act. (correct)

To persons under criminal investigation.

To violations occurring outside the specified territory.

When serving a prohibitory order, what must be done if it cannot be served directly?

Affix it to a conspicuous part of the premises. Signup and view all the answers

Which sections of the Act cover registration of persons for acceptance of foreign contributions?

Sections 11 to 16. Signup and view all the answers

What is one of the two modes of accepting foreign contribution according to FCRA, 2010?

Registration and certification. Signup and view all the answers

Who must witness the written report if a prohibitory order is affixed?

At least two persons. Signup and view all the answers

What is the outcome if a person receives an article in contravention of the Act?

Provisions of the Unlawful Activities Act apply. Signup and view all the answers

Which bodies are exempt from the provisions of FCRA, 2010?

Bodies whose accounts are audited by the Comptroller & Auditor General of India Signup and view all the answers

What is a condition for grant of registration under FCRA for a person making an application?

The individual must not have been convicted of any offence Signup and view all the answers

Which of the following is NOT a requirement for receiving prior permission under FCRA?

The applicant's funds must have been used for local development Signup and view all the answers

Which action could disqualify an organization from receiving foreign contributions?

Creating communal tension in society Signup and view all the answers

What is the significance of auditing by the Comptroller & Auditor General of India for certain bodies?

It maintains transparency and accountability in financial activities Signup and view all the answers

What does it imply if a person has been found guilty of mis-utilization of funds?

They are disqualified from receiving foreign contributions Signup and view all the answers

Which of the following statements about application for the grant of registration is incorrect?

It can bypass payment of any fees. Signup and view all the answers

What type of projects must individuals prepare to receive prior permission under FCRA?

Projects with reasonable benefits to society Signup and view all the answers

Study Notes

Prohibitory Orders for Contravention of the Act

Central Government can issue prohibitory orders for contravention of the Act regarding articles, currency, or securities.
The order must be served on the person concerned:
- By delivering or tendering it to the person or their authorized agent.
- By sending it via registered post with acknowledgment due or speed post to their last known residence, business address, or place of work. For organizations, the last known office address is used.
- By affixing it to the premises (outer door or conspicuous part) if personal service is impossible. The affixation must be witnessed by at least two people.
Rule 8 of the FCR, Rule 2011 and section 7 of the Unlawful Activities (Prevention) Act, 1967 are relevant to the action taken.
References to moneys, securities, or credits within the Act now refer to articles, currency or securities.

Foreign Contribution (Regulation) Act (FCRA) Registration

Registration and Prior Permission Conditions

Applications for registration or prior permission under the FCRA must be made to the Central Government, following prespecified formats and paying applicable fees (Rule 9 of the Foreign Contribution (Regulation) Rules, 2011).
Conditions for registration and prior permission (section 12(4) of FCRA, 2010):
- The applicant must not be fictitious or benami.
- No prosecution or conviction for religious conversion through inducement or force or creating communal tension/disharmony.
- No conviction or finding of guilty for misusing funds.
- Not engaged/likely to engage in sedition or advocating violent methods.
- Not likely to use foreign contribution for personal gain or undesirable purposes.
- No contravention of any FCRA provision.
- No prohibition from accepting foreign contributions.
- (For registration) Demonstrated reasonable activities for the intended societal benefit from the foreign contribution.
- (For prior permission) A detailed, justifiable project demonstrating the intended societal benefit from the foreign contribution.
- (If an individual) No pending prosecutions or convictions under any law.

Exemptions

Bodies established under Central or State Acts requiring compulsory CAG audits are exempt from all FCRA provisions.

Registration Process

Chapter III of the FCRA deals with registration of individuals for accepting foreign contributions, including certification, suspension, cancellation, and renewal processes, covering sections 11 to 16 of the Act.
Two modes for accepting foreign contributions under FCRA 2010 are covered.

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Description

This quiz covers the prohibitory orders issued by the Central Government for contravention of the Foreign Contribution Regulation Act. It outlines the methods of service for these orders and relevant provisions related to articles, currency, and securities. Understanding these legal frameworks is crucial for compliance with the Act.