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PRATHIBA M. SINGH
Helping Hands Jaipur Society – Appellant
Versus
Union of India – Respondent
JUDGMENT
Prathiba M. Singh, J. (Oral)
W.P.(C) 948/2022 and CM APPL. 2724/2022 (interim stay), 24305/2023 (condonation of delay)
1. This hearing has been done through hybrid mode.
2. The Petitioner-M/s. Helping Hands Jaipur Society is an NGO operating in Jaipur, Rajasthan. It obtained its Foreign Contribution Regulation Act, 2010 (hereinafter, `FCRA') registration in terms of Section 11 and 12 of the FCRA on 15th May 2011.
3. The Petitioner had applied for renewal of the FCRA registration on 2nd February 2016 under Section 16 of the FCRA, and the same was renewed by Respondent No. 2- Ministry of Home Affairs (hereinafter, MHA) on 15th October 2016.
4. The Foreign Contribution (Regulation) Amendment Act, 2020 (`the Amendment Act'), which amended the FCRA, was introduced in September, 2020. The said Amendment Act vide Section 17(1) of the FCRA mandated the opening of an "FCRA bank account" with the State Bank of India (`SBI') branch at SBI Sansad Marg, Parliament Street, New Delhi. The amended Section 17(1) of the FCRA, is as follows:
"17. Foreign contribution through scheduled bank.
(1) Every person who has been granted certificate or prior permission under section 12 shall receive
The delayed opening of the FCRA bank account and subsequent actions of the petitioner influenced the court's decision in validating the uploaded annual return without further penalties.
Organizations that opened their FCRA accounts after the amendment came into effect could still fill up the account details in Form FC-4 and submit the same without facing coercive action or penalty.
The court's decision was influenced by the interpretation of FCRA 2010, Section 12(4) and previous case law regarding the timing of bank account openings and filing of returns.
Mandamus cannot be issued for withdrawal of funds from FCRA account post-registration cancellation when statutory provisions vest authority with the government.
Point of law : By the time suspension order was passed, the Central Government had neither issued any notice of hearing / Show Cause notice in terms of sub-section (2) of Section 14 nor had it initia....
Delay in filing annual returns under the Foreign Contribution (Regulation) Act constitutes non-compliance and is subject to penalties; however, penalties cannot be imposed retrospectively for actions....
The court upheld the suspension of the FCRA registration under Section 13, ruling that no prior inquiry or hearing is required, affirming the necessity of statutory compliance over natural justice.
Compounding a violation under the FCRA Act rectifies the applicant's status, and vague basis for rejection violates principles of natural justice.
An appeal under Section 31(2) of the FCRA, 2010 is maintainable against the rejection of a renewal application, emphasizing the necessity for clear reasoning in rejection orders.
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