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2021 Supreme(AP) 1021

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
A.V. SESHA SAI, J.
Promised Land Educational Trust – Petitioner
Versus
Union of India – Respondent
Writ Petition No. 11342 of 2021
Decided On : 23-12-2021

Advocates:
Advocate Appeared:
For the Petitioner: Y. Koteswara Rao.
For the Respondent: Harinath N.

Headnote:

Constitution of India,1950 - Articles 226, 14, 19 and 21 - Indian Penal Code,1860 - section 21 Companies Act, 1956 - Sections 591 and 25 - Foreign Exchange Management Act, 1999 - clause (o) of section 2 - Securities Contracts (Regulation) Act, 1956 - Clause (h) of section 2 - Foreign Contribution (Regulation) Act, 2010 - Sections 12(4)(a)(vii), 13, 14 , 18(1) , 14(3) and 50 - Grant of certificate of registration - Prohibition to accept foreign contribution - Secular Public Charitable Trust, created vide Trust and is engaged in charitable activities in the fields of education, relief to rural poor, orphans, widows, handicapped, blind and people deserving need and assistance in the Society - Petitioner herein established a school in the name and style of “Kings Ideal School” at which has recognition by the State Government upto X class. Petitioner herein is also running a hostel, providing free boarding and accommodation to students belonging to Scheduled Castes/Scheduled Tribes and Backward Communities. Vide order No. respondent authorities granted registration in favour of petitioner under Section 12 of Act, permitting to receive foreign contributions – Held, Petitioner that it paid penalty of an amount financial uploaded the annual returns for said period paid penalty of Rs. Financial uploaded annual returns for said financial year 2018-19 on 07.05.2020. Submission of application petitioner for registration under Section 12 of the Act is not in dispute - By way of the questioned order dated 07.04.2021, the respondent herein declined to consider the request of the petitioner precisely on ground that petitioner received foreign contribution without valid permission of the Ministry of Home Affairs which is a violation of Section 12(4)(a)(vii) of Act - Condition precedent for grant of certificate of registration is that there should not be contravention of any of provisions of the Act - Exemption granted notification dated 18.03.2020 to Section 14(3) of the Act, petitioner herein made an application paying penalties for financial year 2017-18 and 2018-19 and uploaded annual returns should be necessarily construed that the default on the part of petitioner stood compounded and the petitioner cannot be penalised further on the ground that it violated the penal provisions - Court has absolutely no scintilla of hesitation nor any shadow of doubt to arrive at a conclusion that the impugned order cannot be sustained in eye of law - Writ Petition is allowed.

ORDER :

1. This Writ Petition is filed under Article 226 of the Constitution of India, challenging the order bearing No. 0100015622020, dated 07.04.2021 of the Government of India, Ministry of Home Affairs, Foreign Division (FCRA Wing).

2. Heard Sri Y. Koteswara Rao, learned counsel for the petitioner and Sri N. Harinath, learned Assistant Solicitor General for Union of India for the respondent.

3. By way of the impugned order, the respondent herein refused to entertain the application of the petitioner for registration under the “Foreign Contribution (Regulation) Act, 2010 (for short ‘the Act’) on the ground that the case attracts Section 12(4)(a)(vii) and is a serious violation of the Act.

4. According to the petitioner, it is a Secular Public Charitable Trust, created vide Trust dated 10.04.2001 and is engaged in the charitable activities in the fields of education, relief to the rural poor, orphans, widows, handicapped, blind and the people deserving need and assistance in the Society. The petitioner herein established a school in the name and style of “Kings Ideal School” at Nutalagunta Palem, Kasimkota Mandal, Visakhapatnam District which has recognition by the State Government upto X class. Petitioner herein is also running a hostel, providing free boarding and accommodation to the students belonging to Scheduled Castes/Scheduled Tribes and Backward Communities. Vide order No. 010350115, dated 10.08.2001, the respondent authorities granted registration in favour of the petitioner under Section 12 of the Act, permitting to receive foreign contributions.

5. By way of order No. 0300000312017, dated 06.06.2017, the respondent herein granted renewal for a period of 5 years, commencing from 01.11.2016 to 31.10.2021. The respondent issued a General Notice No. II/21022/58 (069)/2018-FCRA(MU), dated 06.05.2019 on the aspect of non-submission of mandatory annual returns from 2011-12 to 2016-17 under the Act read with Rule 17(1) of the Foreign Contribution (Regulation) Rules, 2011 (for short ‘the Rules’).

6. Vide public Notice No. II/21022/36(207)/2015-FCRA-II, dated 12.05.2017, the Ministry granted opportunity of one month i.e. from 15.05.2017 to 14.06.2021 to file annual returns/accounts for the period 2011-12 to 2016-17 without penalty.

7. Vide public notice of the even number dated 24.04.2018, the respondent herein advised to submit report/accounts of the missing years immediately. Then a show-cause notice dated 16.11.2018 came to be issued to all Associations which failed to comply with the advice of the Ministry for action under Section 13.

8. According to the petitioner, it has submitted the annual returns in time.

9. Respondents passed Order No. II/21022/58 (79)/2019- FCRA (MU), dated 18.10.2019, cancelling the registration of the associations mentioned in the Annexure attached to the said order under Section 14 of the Act on the ground that despite grant of sufficient time they did not submit annual returns for the period 2017-18 contrary to Section 18(1) of the Act read with the Rules.

10. In the said annexure, the respondent showed the petitioner at S. No. 95. According to Section 14(3) of the Act, any person whose certificate has been cancelled under Section 14 shall not be eligible for registration or grant or permission for a period of three years from the date of cancellation of such certificate.

11. On the representations of Non Governmental Organisations/Associations, the Union Government vide Notification No. II/21022/58(79)/2019-FCRA (MU), dated 18.03.2020, in exercise of its power under Section 50 of the Act, granted one time exemption from restrictive condition under Section 14(3) to apply for registration within 60 days with a condition that such associations should submit the missing annual returns electronically on FCRA Portal along with prescribed penalty.

12. Vide notification dated 26.05.2020, Union of India extended the time till 16.07.2020, in view of Covid-19 for uploading annual returns for the financial year 20

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