Question

With reference to the Foreign Contribution Regulation Act, consider the following statements:
1. It bars political cartoonists from accepting foreign donations.
2. Political parties need to receive FCRA licence to recieve funds from foreign sources.
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 1

The correct option is B 2 only

The FCRA was passed in 1976. It defined a company, Indian or foreign.This act prohibits acceptance of any foreign donations. It was later repealed and replaced with the FCRA, 2010,2016,2017 & in 2018 and after all amenments now foreign donations can be accepted and it is beyond the scruitiny as well. - Political parties are prohibited from receiving any foreign contribution. However, in 2017 the MHA, through the Finance Bill route, amended the 1976-repealed FCRA making way for political parties to receive funds from the Indian subsidiary of a foreign company or a foreign company in which an Indian holds 50% or more shares.