Foreign Contribution (regulation) Act

Why in news?

• Government has suspended FCRA clearance of four Christian groups.

About FCRA:

• The Foreign Contribution (regulation) Act, 2010 is an act of the Parliament of India.
• It is a consolidating act whose scope is to:
  • Regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies
  • 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.
• The main purpose of the act was to correct shortfalls in the predecessor act of 1976.
• Foreign donations may be those from Governments, international agencies, foreign companies, trusts, corporations, foreign citizens etc
• However some agencies like United nations, World Bank, IMF etc are excluded from the definition of foreign donors.
• According to the act, foreign donations cannot be accepted by:
  • Election candidates
  • Editors and publishers of newspapers
  • Judges and government employees.
  • Political parties and members of legislature etc

PRELIMS QUESTION

Consider the following statements regarding “Foreign Contribution (regulation) Act”:
1.World Bank is excluded from the definition of foreign sources under the act.
2.Political parties are prohibited from taking foreign donations under the act.
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

Answer to prelims question