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2019 Supreme(Mad) 2350
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
KRISHNAN RAMASAMY, J.
Poondimadha Religious Trust, Rep. by the Chief Functionary, Fr.A. Packiasamy, Poondi – Petitioner
Versus
The Secretary to Government of India, Ministry of Home Affairs, Foreigners Division (FCRA Wing), New Delhi – Respondent
C.M.A.(MD) No. 53 of 2019
Decided On : 29-11-2019
For the Appellant :T. Senthil Kumar, Advocate.
For the Respondent: G. Rajaraman, CGSC.
The court emphasized the importance of aligning an organization's activities with its stated objectives, particularly in the context of seeking foreign contributions.
Headnote:
Foreign Contribution Regulation Act - Trust - Section 11(1), 11(2), 12(4)(a)(vi), 16
Fact of the Case:
The appellant, a Trust registered under the Trust Act, filed an application for foreign contribution under the Foreign Contribution (Regulation) Act, 2010. The application was rejected by the respondent, leading to the appeal.
Finding of the Court:
The court found that the Trust's activities did not align with its stated welfare objectives, as evidenced by the meagre amount spent on welfare activities compared to the substantial revenue generated. The rejection of the application was deemed genuine and based on proper reasons.
Issues: The issues revolved around the rejection of the Trust's application for foreign contribution, with the appellant challenging the rejection on various grounds.
Ratio Decidendi: The court's decision was based on the discrepancy between the Trust's stated welfare objectives and its actual activities, as reflected in its financial reports.
Final Decision: The appeal was dismissed, and no costs were awarded.
JUDGMENT :
(Prayer: Appeal filed under Section 31 (2) of The Foreign Contribution (Regulation) Act, 2010, against the order passed in No. 0100003722018, dated 22.10.2018 on the file of the Government of India, Ministry of Home Affairs, Foreigners Division (FCRA Wing).)
1. This Civil Miscellaneous Appeal has been filed by the appellant challenging the order passed in No.0100003722018, dated 22.10.2018 on the file of the Government of India, Ministry of Home Affairs, Foreigners Division (FCRA Wing).
2. The learned counsel for the appellant submitted that the appellant was a Trust registered under the name and style of Poondimadha Religious Trust, on 04.03.2014 under the Trust Act. The Trust was created for the purpose of carrying out the public religious objects and purposes wide enough for the extension of the benefit thereof to all, irrespective of class, community, relief of poor, education, medical relief and advancement of any object of general and/or public utility and so that such benefit may be given directly by the said Trust. According to the appellant, the Trust is working under the Poondimadha Religious Trust, Poondi, Thanjavur District. The appellant further submitted that the Trust is in need of contribution in and around the globe to carryout various welfare activities. Hence, Poondimadha Religious Trust made an application under Section 11(1) and (2) and Section 16 of the Foreign Contribution (Regulation) Act, 2010 to the respondent, dated 21.06.2018 for the acceptance of foreign contribution by an association having definite cultural, economic, educational religion or social programme.
3. Further, the learned counsel for the appellant trust contended that the Trust was registered as a public Trust under Section 12AA of the Income Tax Act, 1961 with effect from 08.04.2015 by an order passed by the Commissioner of Income Tax (Exemption), Chennai vide UR No.AACTP6341F/05/15-16/T-0277, dated 20.08.2015. The learned counsel for the appellant would also submit that the entire account of the Trust is being regularly audited and the same is being approved by the Income Tax Authorities for Tax exemption considering the status of the Trust as a public religious Trust.
4. The learned counsel for the appellant would further contend that the registration of the Trust under the Foreign Contribution (Regulation) Act, 2010, could be carried out only through online. Therefore, he has contended that he has filed an application as stated above on 21.06.2018 and it was mechanically without application of mind, rejected the application by non-speaking order in No.0100003722018, dated 22.10.2018 on the file of the Government of India, Ministry of Home Affairs, Foreigners Division (FCRA Wing) and the same was communicated through E-mail. The appellant has challenged the above order on the following grounds:-
(a). The order passed by the respondent is a non-speaking order;
(b). The respondent rejected the application, without considering the aims and service rendered by the Basilica from time immemorial;
(c). The application was rejected without considering the fact that the Board of Trustees are interested only in the welfare activities;
(d). The respondent without considering the fact that the appellant trust has been duly recognised by the Income Tax Authorities under Section 12AA of the Income Tax Act, 1961, for exemption from Income Tax for accepting the donations; and
(e). Further, the application was rejected without providing any opportunities for the appellant to purforth their case before the respondent.
5. On the other hand, the learned counsel for the respondent would contend that the Foreign Contribution (Regulation) Act, 2010 (FCRA or Act) is a self-contained legal code/consolidated law to regulate receipt and utilisation of foreign contribution or foreign hospitality received by eligible individuals/associations/companies/NGOs. The learned counsel would further contend that Section 11 of the Act mandates obtaining prior permission
