Prohibition to accept foreign contribution
Section 3 of the Foreign Contribution (Regulation) Act, 2010 deals with prohibition to accept foreign contribution. No foreign contribution shall be accepted by any-- (a) candidate for election; The Act came into force on 01 May 2011.
(1) No foreign contribution shall be accepted by any--
(a) candidate for election;
(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;]
(d) member of any Legislature;
(e) political party or office-bearer thereof;
(f) organisation of a political nature as may be specified under sub-section (1) of section 5 by the Central Government;
(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;
(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.
(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.
(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--
(i) any political party or any person referred to in sub-section (1), or both; or
(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--
(a) to any person other than a person for which it was received, or
(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.
Section 3, The Foreign Contribution (Regulation) Act, 2010 (Act 42 of 2010).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Indian Social Action Forum (INSAF) v. Union of India
Court's Decision & Legal Precedent
Judgement of Main Case order-30.pdf 2020-03-06 (same-day ROP is order-31.pdf — use order-30). Auto VERIFY-this-is-the-order (filename reuse); body is the named L. Nageswara Rao + Deepak Gupta CA 1510/2020 dated 6 Mar 2020 — DATE-CHECK VERIFY. Isolate: FCRA s.3(1)(f) bars foreign contribution to an organisation of a political nature specified under s.5; s.5(1)/(4) are not unconstitutionally vague; Rule 3(v) ‘political interests’ and Rule 3(vi) bandh/hartal are read down to active/party politics so that ordinary social-welfare NGOs are not barred. Leading SC. Distinctive (INSAF). Fills empty FCRA 3 and 5. Map 3 and 5 — do not pad 7/12A/17 (already filled).
On this section: FCRA s.3(1)(f) prohibits foreign contribution to an organisation of a political nature specified under s.5; candidates, parties, media and specified political-nature orgs are the barred class (INSAF).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… He points out that this is not a power of attorney deed and therefore, it does not satisfy the requirement of Order III Rule 2(a) of the CPC. In addition, he argues that under Section 3(3) of the Foreign Contribution (Regulation) Act, 2010 (in short "FCR Act"), no person can receive any currency whether, in rupees or any foreign currency, unless and until it satisfies the requirements of the Act. Hence, he pleads that the suit is barred and therefore, the order of the Trial Judge requires to be …
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… A2 was the President of the said Society. The Society was also registered with the office of the Director, Foreign Exchange Regulation Authority under section 3 of the Foreign Contribution (Regulation) Act, enabling the Society to receive funds from foreign sources. A3 was working as Paris Priest at Tallapalem RCM Church of Nellore Distict. During the year 1994 he joined the Society as Secretary-cum-Treasurer and worked from 14.02.1994 to 25.05.2006 in that capacity. It is …
Made under this section, and citing it
2 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 2 instruments name this provision in its title or its text without being made under it.
Questions about Section 3
What have the courts held on Section 3 of the Foreign Contribution (Regulation) Act?
Indian Social Action Forum (INSAF) v. Union of India (06 Mar 2020) is the leading judgment on this section among those set out below: FCRA s.3(1)(f) prohibits foreign contribution to an organisation of a political nature specified under s.5; candidates, parties, media and specified political-nature orgs are the barred class (INSAF).
How do I find court cases under Section 3 of the Foreign Contribution (Regulation) Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Foreign Contribution (Regulation) Act 3, section 3 Foreign Contribution (Regulation) Act, section 3 of the Foreign Contribution (Regulation) Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Indian Social Action Forum (INSAF) v. Union of India (06 Mar 2020).
What should I read with Section 3 of the Foreign Contribution (Regulation) Act, and has it changed?
Its own text turns on Companies Act 2 (Definitions), section 5 (Procedure to notify an organisation of a political nature), section 6 (Restriction on acceptance of foreign hospitality), section 9 (Power of Central Government to prohibit receipt of foreign contribution, etc., in certain cases), and on 1 further provision, so none of them can safely be read on its own. 5 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 2: most recently Comounding of Offence under FCRA, 2010 (2018), then Amount of Penalty and Competent Authority for late submission of Annual Returns under FCRA, 2010 (2016).
When did Section 3 of the Foreign Contribution (Regulation) Act come into force?
Section 3 of the Foreign Contribution (Regulation) Act, cited as Foreign Contribution (Regulation) Act 3, came into force on 01 May 2011, having been enacted on 26 Sep 2010. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1455 words
- 12. Grant of certificate of registration801 words
- 48. Power to make rules652 words
- 11. Registration of certain persons with Central Government430 words
- 5. Procedure to notify an organisation of a political nature393 words
- 54. Repeal and saving373 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.