UPSC Prelims Practice Questions — HC refuses to interfere with order on fund use by CHRI

Q1. Registration, renewal and cancellation of certificates under the Foreign Contribution (Regulation) Act, 2010 are administered by which one of the following?

  • A. The Department of Economic Affairs in the Ministry of Finance
  • B. The Ministry of Home Affairs through its Foreigners Division
  • C. The Financial Intelligence Unit–India under the Department of Revenue
  • D. The Ministry of External Affairs through its overseas partnerships wing

Q2. Under the Foreign Contribution (Regulation) Act, 2010, what is the first statutory step that must precede an order cancelling an association's certificate of registration?

  • A. Prior suspension of the certificate of registration for a period of three years
  • B. A written reference to the State Government in which the association is registered
  • C. A show cause notice affording the association a reasonable opportunity of being heard
  • D. Freezing of the association's designated FCRA Account with the State Bank of India

Q3. Consider the following possible consequences for an association whose certificate of registration under the Foreign Contribution (Regulation) Act, 2010 has been cancelled: 1. It becomes ineligible for fresh registration or for grant of prior permission for three years from the date of cancellation. 2. It ceases to be entitled to receive any further foreign contribution. 3. Its legal existence as a registered society, trust or company stands extinguished. 4. It is barred from spending funds raised from domestic sources. Which of the above is/are correctly identified?

  1. It becomes ineligible for fresh registration or for grant of prior permission for three years from the date of cancellation.
  2. It ceases to be entitled to receive any further foreign contribution.
  3. Its legal existence as a registered society, trust or company stands extinguished.
  4. It is barred from spending funds raised from domestic sources.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 2 and 4
  • D. 3 and 4

Q4. The Foreign Contribution (Regulation) Amendment Bill, 2026 provides that foreign contribution and assets created out of it, belonging to an organisation whose certificate has ceased, shall vest in which one of the following?

  • A. The Official Liquidator attached to the High Court having territorial jurisdiction
  • B. A Designated Authority, with proceeds of any sale credited to the Consolidated Fund of India
  • C. The District Magistrate of the district in which the organisation's registered office is located
  • D. The State Bank of India's New Delhi Main Branch, which maintains the FCRA Account

Q5. With reference to the Delhi High Court proceedings of September 2026 concerning the use of funds by the Commonwealth Human Rights Initiative (CHRI), consider the following statements: 1. The Division Bench that declined to interfere comprised Chief Justice D.K. Upadhyaya and Justice Tejas Karia. 2. The single judge had permitted withdrawal of the amount subject to authentication by a Chartered Accountant. 3. The Division Bench partly allowed the Centre's appeal and reduced the permitted withdrawal to half the amount originally allowed. 4. The reserve fund from which withdrawal was permitted was held in CHRI's designated FCRA Account with the State Bank of India, New Delhi. Which of the above is/are NOT correct?

  1. The Division Bench that declined to interfere comprised Chief Justice D.K. Upadhyaya and Justice Tejas Karia.
  2. The single judge had permitted withdrawal of the amount subject to authentication by a Chartered Accountant.
  3. The Division Bench partly allowed the Centre's appeal and reduced the permitted withdrawal to half the amount originally allowed.
  4. The reserve fund from which withdrawal was permitted was held in CHRI's designated FCRA Account with the State Bank of India, New Delhi.
  • A. 1 and 2
  • B. 2 and 4
  • C. 3 and 4
  • D. 1, 3 and 4

Q6. Consider the following statements regarding the CHRI matter decided by the Delhi High Court in September 2026: 1. CHRI's FCRA certificate of registration had been cancelled by the Ministry of Home Affairs on 12 September 2024. 2. The interim order permitting withdrawal from the reserve fund was passed by a single judge on 19 May 2026. 3. CHRI had assailed the cancellation on the ground that it was effected without affording it a hearing. 4. The Division Bench's order of 11 September 2026 finally decided CHRI's challenge to the cancellation of its registration. Which of the statements given above is/are correct?

  1. CHRI's FCRA certificate of registration had been cancelled by the Ministry of Home Affairs on 12 September 2024.
  2. The interim order permitting withdrawal from the reserve fund was passed by a single judge on 19 May 2026.
  3. CHRI had assailed the cancellation on the ground that it was effected without affording it a hearing.
  4. The Division Bench's order of 11 September 2026 finally decided CHRI's challenge to the cancellation of its registration.
  • A. 1 and 4 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 2, 3 and 4