Foreign firms can fund NGOs and political parties.

Q.  Which of the following is/are true?

1) Now foreign firms cannot fund political parties and NGOs in India.
2) The Representation of People Act bars political parties from receiving foreign funds.
- Published on 17 May 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 2
 
  • The amended Foreign Contribution Regulation Act (FCRA), 2010 which was brought in through the Finance Bill route, will help foreign origin companies to fund NGOs here as well has enable them to give donations to political parties.
  • Such funding will now bypass government scrutiny.

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