One Indian Nodal Agency (first recipient) gave foreign funds to another NGO with FCRA (second recipient) for some specified project. The second recipient attended two training courses – one conducted by the first recipient and the second training course by another NGO without FCRA. The second recipient paid course fees from out of the foreign funds to both the first recipient and another NGO without FCRA. The questions are:
1. Should the first recipient credit the course fee into his FC Bank Account and show the course fee in his FC Account Books? OR Can he take it into his local account?
2. Is it wrong on the part of the second recipient to pay course fee from out of foreign funds to a Non-FCRA-NGO? Will the non-FCRA-NGO be taken to task by MHA for accepting foreign funds in the form of course fee?