Section 3 FCRA 2010: Prohibition to Accept Foreign Contribution
Section 3 of the Foreign Contribution (Regulation) Act, 2010 identifies persons and entities that are prohibited from accepting foreign contribution. The provision also restricts acceptance or delivery of foreign-source currency on behalf of those prohibited categories.
Who cannot accept foreign contribution under Section 3(1)?
Under section 3(1), foreign contribution cannot be accepted by the following categories:
(a) candidate for election;
(b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper;
(c) public servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;
(d) member of any Legislature;
(e) political party or office-bearer thereof;
(f) organisation of a political nature as may be specified under section 5(1) by the Central Government;
(g) association or company engaged in the production or broadcast of audio news, audio visual news or current affairs programmes through electronic or other modes of mass communication; and
(h) correspondent, columnist, cartoonist, editor or owner of an association or company referred to in clause (g).
Meaning of public servant and corporation
Public servant: For clause (c), the FCRA explanation adopts the meaning of "public servant" given in section 21 of the Indian Penal Code, 1860. This explanation was substituted by the 2020 amendment.
Corporation: For clause (c) and section 6, "corporation" means a corporation owned or controlled by the Government and includes a Government company as defined in section 2(45) of the Companies Act, 2013.
Section 3(2): Acceptance or delivery on behalf of prohibited persons
Section 3(2)(a): A person resident in India, and an Indian citizen resident outside India, cannot accept foreign contribution or acquire or agree to acquire currency from a foreign source on behalf of a political party or a person covered by section 3(1).
Section 3(2)(b): A person resident in India cannot deliver Indian or foreign currency accepted from a foreign source where that person knows, or has reasonable cause to believe, that the recipient intends or is likely to deliver it to a political party or a person covered by section 3(1).
Section 3(2)(c): An Indian citizen resident outside India cannot deliver such foreign-source currency directly to a political party or a person covered by section 3(1), or to another person where there is knowledge or reasonable cause to believe that it will ultimately be delivered to such prohibited recipient.
Section 3(3): Currency received for persons covered by Section 9
Where a person receives Indian or foreign currency from a foreign source on behalf of a person or class of persons referred to in section 9, section 3(3) restricts delivery of that currency to anyone other than the intended recipient. It also prohibits onward delivery where the receiver knows, or has reasonable cause to believe, that the currency is likely to be passed to a person other than the intended recipient.
Section 4 exceptions should also be checked
Section 3 is not read in isolation. Section 4 of the FCRA specifies circumstances in which section 3 does not apply, subject to the Act. Anyone assessing whether a particular receipt is prohibited should therefore read sections 3 and 4 together and consider the facts of the transaction.
Official FCRA sources
For the authoritative statutory text and current regulatory services, refer to the Foreign Contribution (Regulation) Act, 2010 on India Code, the Ministry of Home Affairs FCRA page and the official FCRA Online Services portal.
This article is a general statutory reference. For a specific transaction, the applicable facts, amendments, rules, notifications and official directions should also be examined.