Bombay High Court Allows Lawyers Collective to File Compounding Application Under FCRA Rules, 2011

The Bombay High Court has paved the way for the Lawyers Collective to seek compounding of the offence under the Foreign Contribution Regulation Act (FCRA) by directing the Ministry of Home Affairs to provide the necessary email ID and online portal details. Justice Milind N. Jadhav, hearing an interim application, observed that the pendency of a quashing petition cannot deny the applicant the valuable right to compound the offence under Rule 21 of the FCRA Rules, 2011.

A Narrowed Case and a Quest to Compound

The dispute began with an FIR registered by the Economic Offences Wing (EOW), Mumbai, against the Lawyers Collective under the Indian Penal Code, the Prevention of Corruption Act, and the FCRA. However, after investigation, the charges under the IPC and PC Act were dropped, and the charge sheet filed before the A.C.M.M. 3rd Court, Esplanade Court, Mumbai, was limited to offences under the FCRA, specifically Section 41 read with other provisions. The Lawyers Collective then filed a writ petition seeking quashing of these proceedings. In the interim, they sought to avail the remedy of compounding—a process that allows the offence to be settled without a full trial—by filing an application under Rule 21 of the FCRA Rules, 2011.

The Procedural Hurdle

The applicants argued that they were ready to pay the prescribed compounding fee of Rs. 3,000, but were unable to do so because the Ministry of Home Affairs had not provided them with the email ID and online portal required to submit the application electronically. Despite multiple requests, the Ministry’s response, as reflected in a letter dated September 17, 2025, stated that the matter was “subjudiced” and therefore the request for compounding was not accepted. The Lawyers Collective approached the High Court, seeking directions to the Ministry to provide the necessary electronic access.

A Valuable Right Cannot Be Denied

Justice Jadhav firmly rejected the Ministry’s stand. He noted that Rule 21 of the FCRA Rules clearly provides for compounding of offences, and that the pendency of the quashing petition could not be a ground to deny the applicants the opportunity to file such an application. The court observed:

“Pendency of the matter or the matter being subjudiced cannot preclude the Applicants from filing the said Application or for that matter they be denied permission for compounding.”

Further, the court highlighted the significance of the right to compound when only FCRA charges remain:

“Once the said Rule has been complied with and most importantly in view of the only charge against the Applicants being that under Section 41 of the FCRA, then a valuable right accrues to the Applicants for seeking compounding of the said offence, which cannot be denied.”

Directions and Next Steps

The court allowed the interim application in terms of prayer clauses (a) and (b), directing the Secretary, Ministry of Home Affairs (Foreigners II Division, FCRA Wing, Monitoring Unit) to provide the email ID or website where the application can be made, as well as details of the portal for payment of the compounding fee. Compliance must be completed within one week.

Additionally, the court directed the trial court seized of C.C. No. 740/PW/2025 to hear the compounding application as expeditiously as possible and preferably within four weeks from the date of filing. The main writ petition seeking quashing of the criminal proceedings has been listed for hearing on October 29, 2026.

All contentions of both sides were expressly kept open, and the court clarified that its observations were not to be construed as comments on the merits of the case. With this order, the Lawyers Collective has been handed a clear procedural pathway to settle the FCRA charges, while the larger quashing challenge remains pending.