can CSOs spend on FPO’S Processing infrastructure from FC grants? If yes, are there any precautions to be taken?
FPOs can be setup as a company (FPCs) or as a society under Cooperative Societies Act. A society is included within the definition of Person under FCRA and therefore transfer of FC funds would tantamount to inter charity donation which is prohibited. So use of FC funds with FPCs as commercial contracts would be safe. Further, if any income is generated through FC funds for infrastructure or enterprise funded will be deemed to be FC also.
Hope it clairifes.
CS Sharad Bhargava
1 Like