REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITYCentral

Section 3 of The Foreign Contribution (Regulation) Act, 2010

(1)No foreign contribution shall be accepted by any--
1. (a)candidate for election;
2. (b)correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; 1[(c) public servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;]
3. (d)member of any Legislature;
4. (e)political party or office-bearer thereof;
5. (f)organisation of a political nature as may be specified under sub-section (1) of section 5 by the Central Government;
6. (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 as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) or any other mode of mass communication;
7. (h)correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g). 2[Explanation.1--For the purpose of clause (c), public servant means a public servant as defined in section 21 of the Indian Penal Code (45 of 1860). Explanation 2.--In clause (c) and section 6, the expression "corporation" means a corporation owned or controlled by the Government and includes a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).]
(2)(a) No person, resident in India, and no citizen of India resident outside India, shall accept any foreign contribution, or acquire or agree to acquire any currency from a foreign source, on behalf of any political party, or any person referred to in sub-section (1), or both.
1. (b)No person, resident in India, shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to any political party or any person referred to in sub-section (1), or both.
2. (c)No citizen of India resident outside India shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to--
  1. (i)any political party or any person referred to in sub-section (1), or both; or
  2. (ii)any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a political party or to any person referred to in sub-section (1), or both.
(3)No person receiving any currency, whether Indian or foreign, from a foreign source on behalf of any person or class of persons, referred to in section 9, shall deliver such currency--
1. (a)to any person other than a person for which it was received, or
2. (b)to any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a person other than the person for which such currency was received.

Summary

This section outright bans specific groups of people with public influence from accepting any foreign contributions.
The ban applies to election candidates, journalists, newspaper editors, judges, government servants, and members of any Legislature.
Political parties and their office-bearers are also strictly forbidden from receiving foreign funds.
Organizations that produce audio or visual news and current affairs programs are banned from taking foreign money.
It is illegal for anyone living in India, or any Indian citizen abroad, to collect foreign currency on behalf of these banned individuals or political parties.
It is also illegal for anyone to deliver foreign currency to another person if they have reason to believe the money will eventually be handed over to these banned individuals.

Practical examples

1A sitting Member of the Legislative Assembly is offered a large campaign donation from a foreign corporation, which they must refuse under this rule.

2A popular television news anchor is offered direct foreign funding to start a new current affairs show, which is completely prohibited.

3A local citizen accepts cash from a foreign tourist and secretly plans to give it to a political party, making both the citizen and the party break the law.

FAQ

1. Can a judge in India accept a foreign contribution under Section 3 of the FCRA 2010?

No, under Section 3 of the FCRA 2010, a judge is explicitly listed as a person who cannot accept any foreign contribution.

2. Under Section 3 of the FCRA 2010, can a political party receive money from a foreign source if an ordinary citizen collects it for them first?

No, Section 3 of the FCRA 2010 prohibits any person from accepting foreign currency on behalf of any political party.

3. Are news broadcasters allowed to get foreign contributions under Section 3 of the foreign funding law?

No, Section 3 of the foreign funding law prohibits associations or companies engaged in producing audio or visual news from accepting foreign contributions.

4. If an organization is notified as having a political nature under Section 5, how does Section 3 of the FCRA 2010 treat them?

Under Section 3 of the FCRA 2010, an organisation of a political nature specified under Section 5 is completely prohibited from accepting foreign contributions.

Test yourself

Q1.According to Section 3 of the Foreign Contribution (Regulation) Act, 2010, which of the following individuals is legally allowed to accept a foreign contribution?

Q2.How do Section 3 and Section 5 of the FCRA 2010 work together regarding political organisations?

Q3.Under Section 3 of the FCRA 2010, what happens if an ordinary resident in India tries to act as a middleman for a banned person?

Q4.Which media professional is explicitly banned from accepting foreign contributions under Section 3 of the FCRA 2010?

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REGULATION OF FOREIGN CONTRIBUTION AND FOREIGN HOSPITALITYCentral

Section 3 of The Foreign Contribution (Regulation) Act, 2010

(1)No foreign contribution shall be accepted by any--
1. (a)candidate for election;
2. (b)correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; 1[(c) public servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;]
3. (d)member of any Legislature;
4. (e)political party or office-bearer thereof;
5. (f)organisation of a political nature as may be specified under sub-section (1) of section 5 by the Central Government;
6. (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 as defined in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) or any other mode of mass communication;
7. (h)correspondent or columnist, cartoonist, editor, owner of the association or company referred to in clause (g). 2[Explanation.1--For the purpose of clause (c), public servant means a public servant as defined in section 21 of the Indian Penal Code (45 of 1860). Explanation 2.--In clause (c) and section 6, the expression "corporation" means a corporation owned or controlled by the Government and includes a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).]
(2)(a) No person, resident in India, and no citizen of India resident outside India, shall accept any foreign contribution, or acquire or agree to acquire any currency from a foreign source, on behalf of any political party, or any person referred to in sub-section (1), or both.
1. (b)No person, resident in India, shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to any person if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to any political party or any person referred to in sub-section (1), or both.
2. (c)No citizen of India resident outside India shall deliver any currency, whether Indian or foreign, which has been accepted from any foreign source, to--
  1. (i)any political party or any person referred to in sub-section (1), or both; or
  2. (ii)any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a political party or to any person referred to in sub-section (1), or both.
(3)No person receiving any currency, whether Indian or foreign, from a foreign source on behalf of any person or class of persons, referred to in section 9, shall deliver such currency--
1. (a)to any person other than a person for which it was received, or
2. (b)to any other person, if he knows or has reasonable cause to believe that such other person intends, or is likely, to deliver such currency to a person other than the person for which such currency was received.

Summary

This section outright bans specific groups of people with public influence from accepting any foreign contributions.
The ban applies to election candidates, journalists, newspaper editors, judges, government servants, and members of any Legislature.
Political parties and their office-bearers are also strictly forbidden from receiving foreign funds.
Organizations that produce audio or visual news and current affairs programs are banned from taking foreign money.
It is illegal for anyone living in India, or any Indian citizen abroad, to collect foreign currency on behalf of these banned individuals or political parties.
It is also illegal for anyone to deliver foreign currency to another person if they have reason to believe the money will eventually be handed over to these banned individuals.