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2025 Supreme(Ori) 386

IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K. SAHOO, S.S. MISHRA, JJ.
Utkal Jyoti Educational Society, Jharsuguda – Appellant
Versus
Joint Director (FCRA), Ministry of Home Affairs – Respondent
W.P. (C) No. 34294 of 2025
Decided On : 08-12-2025

Advocates Appeared:
For the Appellants : Sidhartha Ray, K.K. Sahoo
For the Respondent: P.K. Parhi

The authority can refuse renewal of FCRA registration based on safety concerns without violating natural justice, as supported by inquiry findings.

Headnote:(A) Foreign Contribution (Regulation) Act, 2010 - Sections 11, 12, 16, and 32 - Renewal application - Refusal to renew on grounds of likely violations by petitioner of FCRA provisions - Principle of natural justice violated due to lack of confrontation regarding allegations - Petitioner allowed to apply for fresh registration if eligibility criteria met. (Paras 6-17)

(B) Inquiry Report - The rejection of renewal application based on an inquiry report indicating likely law and order disruptions due to the organization's activities is justified under Section 12(4) of FCRA. (Paras 12-13)

Facts of the case:
The petitioner was registered under the Society Registration Act and FCRA, receiving periodic renewals until refusal for the last application citing possible violations related to inclusion of Sarna as a separate religion. The refusal order dated 20.01.2023 was contested, claiming breaches in procedures of natural justice. (Paras 4-5)

Findings of Court:
The court upheld the refusal to renew the registration based on the inquiry report, indicating potential public disorder concerns, affirming the authority's discretion under the FCRA. No illegality found in the decision. (Paras 17-18)

Issues: The main issues included whether the inquiry against the petitioner was valid, the sufficiency of the evidence supporting the refusal to renew, and the application of natural justice principles. (Paras 8-11)

Ratio Decidendi: The court reasoned the authority acted within its powers under the FCRA to deny renewal based on safety concerns, asserting that previous administrative decisions do not set a binding precedent in future cases despite the context of different allegations. (Paras 15-16)

Result: Writ petition dismissed.

ORDER :

1. This matter is taken up through Hybrid arrangement (video conferencing/physical mode).

2. Heard Mr. Sidhartha Ray, learned Senior Advocate appearing for the petitioner and Mr. P.K. Parhi, learned Deputy Solicitor General of India appearing for the opposite party.

3. This writ petition has been filed by the petitioner Utkal Jyoti Educational Society, Jharsuguda challenging the orders dated 20.01.2023 and 21.05.2025 passed by the Joint Director (FCRA), Government of India, Ministry of Home Affairs, Foreigners Division, the opposite party under Annexures-1 and 2 respectively.

4. The factual scenario as it appears that the petitioner society/association was granted registration certificate on 10.11.1990 under Society Registration Act and accordingly, it was registered under the Foreign Contribution (Regulation) Act, 2010 (hereinafter, ‘FCRA Act’) and it is stated that the association was engaged in administrating the Educational and Training Institutions and related establishment and to conduct training courses, seminars, lecturers, discussions for students, teachers, social workers, technicians and other personnel for the staff of colleges, high schools, middle schools in the matters theoretical and scientific pertaining to diffusion of such knowledge, mass communications and related subjects for all classes of people, without distinction of caste or creed and to give award, scholarships , diplomas and certificates in respect thereof. It is stated that the petitioner was receiving the renewal of registration under FCRA Act time to time granted by the Ministry of Home Affairs, Foreigners and by order dated 05.08.2016 of the Director, FCRA, Foreign Division, the renewal of registration was made for a period of five years. When the petitioner association submitted an application for renewal of the certificate in the prescribed format on 22.04.2021, the opposite party refused to renew the certificate holding that the petitioner society is likely to violate the provisions of the FCRA Act, which according to the petitioner was made purely on conjecture and surmises. It is the case of the petitioner that the allegation of the central security agency was never confronted to the petitioner society to raise its objection, which is in violation of principle of natural justice.

5. Against the refusal order dated 20.01.2023 for renewal of the application, the petitioner association filed a revision application under section 32 of the FCRA Act on 15.02.2023 and the Revisional Authority also rejected the application which according to the petitioner was illegal and arbitrary.

6. Mr. Ray, learned Senior Advocate appearing for the petitioner placed us provisions under section 11 and section 12 of the FCRA Act so also section 16 of the FCRA Act, which deals with renewal of the certificate. According to Mr. Ray, section 16 of the FCRA Act prescribes that every person who has been granted a certificate under section 12 can have such certificate renewed within six months before the expiry of the period of the certificate.

7. In the case in hand, since the certificate was issued in favour of the petitioner association and the renewal was last granted on 05.08.2016 for a period of five years, the petitioner applied for renewal on 22.04.2021, which was in consonance with section 16(1) of the said FCRA Act.

8. Learned counsel for the petitioner further submits that though the proviso to sub-section (1) of section 16 of the FCRA Act states that the Central Government before renewing the certificate can make such inquiry, as it deems fit, to satisfy itself that such person had fulfilled all the conditions specified in sub-section (4) of section 12 of the FCRA Act, but in the case in hand, when the inquiry was conducted and inquiry report has been prepared and it has gone against the petitioner, a copy of such inquiry report should have been forwarded to the petitioner to have his say on the matter and without giving opportunity to the petitioner and wit

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