Prohibition on acceptance of a foreign contribution

Certain persons and organizations prohibited from accepting foreign contribution

No foreign contributions shall be accepted by any of the following:

  1. Candidate for election.
  2. Correspondent, columnist, cartoonist, editor, owner, printer, or publisher of a registered newspaper.
  3. Judge, government servant, or employees of any corporation or any other body controlled or owned by the government.

Where a corporation means a corporation under control by the government and includes a government company as defined in the Companies Act.

  1. Member of any legislature.
  2. A political party or office-bearer of a political party.
  3. Any organization which has been specified as an organization of political nature.
  4. Association or company engaged in the production or the broadcast of audio news or audiovisual news or current affairs program through any electronic mode, all any other electronic form or any other mode of mass communication.
  5. Correspondent or columnist, cartoonist, editor, owner of the association, or company.

Further provision on acceptance of foreign contribution.

  1. 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 a political party or any person who is prohibited from accepting foreign contribution.
  2. 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 person intends or is likely to deliver such currency to any political party or for any person who is prohibited from accepting foreign contribution.
  3. No citizen of India resident outside India share deliver any currency, whether Indian or foreign which has been accepted from any foreign source to any political party or any person who is prohibited from accepting foreign contribution or any other person if he knows or reasonable cause to believe that such other person intends, or is likely to deliver such currency to a political party or any person who is prohibited from accepting the contribution.

Prohibition on the person receiving any currency from of foreign source on behalf of some other person

No person receiving any currency whether Indian or foreign from a foreign source on behalf of any person or class of person shall deliver such currency to any person other than a person for whom it was received or to any other person if he knows he has reasonable cost to believe that such other person intends or is likely to deliver such currency to a person other than a person from whom such currency was received.

But there is no prohibition on acceptance of foreign contribution by any person or organization those we mentioned above. There are certain cases which are as follows: 

  • Receipt of foreign contribution from any foreign source by way of salary, other remuneration due to him or due to any group of persons working under him. 
  • Receive of foreign contribution from any foreign source in the ordinary course of business transacted in India by such foreign source. 
  • Receipt of foreign contribution by way of payment, in the course of International Trade or commerce, or the ordinary course of business transacted by him outside India. 
  • Foreign contribution received as an agent of foreign source about any transaction made by such foreign source with the central government or state government. 
  • Foreign contribution received by way of a gift for a presentation made to him by a member of any Indian delegation. 
  • Foreign contributions received from relatives. 
  • Foreign contribution received in the ordinary course of business through any official channel, post office, or any authorized person in foreign exchange under the Foreign Exchange Management Act. 
  • Receipt of foreign contribution by way of any scholarship, stipend, or any payment of like nature.

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