Supreme Court Seeks Centre's Response To Plea Challenging FCRA Amendments

The Supreme Court on Tuesday granted three weeks time to the Union of India to file its counter-affidavit in a writ petition challenging the Foreign Contributions Regulation (Amendment) Act 2020.Accepting the Union's request for adjournment, the Court listed the matter Noel Harper and others v.Union of India and others on October 5. The petitioners have challenged the amendments saying that they have imposed harsh and excessive restrictions on the NGOs in utilizing foreign funds.Senior advocate Gopal Sankaranarayanan, appearing for the petitioner, submitted that nearly 23000 NGOs and other organizations were facing 'substantial difficulty' as they had been instructed to open a bank account in one particular branch of the State Bank of India in Delhi pursuant to the MHA notification. He submitted that asking all NGOs to open the account in one particular branch was arbitrary and caused serious operational difficulties.He thus prayed before the Court to issue an interim relief directing further extension of time to the NGOs to report compliance with the MHA's directions as 'penal consequences' would follow otherwise. However, the Bench refused to entertain such a plea and accordingly opined, "You will get final relief only, no interim relief will be granted now". The petitioners also challenge the amended Section 7 of FCRA which prohibits an NGO from transferring the foreign funds received by it to any other person unless such other perso n is also registered or granted permission by the competent authority.Additional Solicitor General of India Sanjay Jain submitted that the Government will respond to all issues raised in the petition.Connected PILs challenging extension of time for FCRA complianceAlong with this PIlL, the Court also considered two other cases VinayVinayak Joshi v. Union of India and Jeevan Jyothi Charitable Trust and others v. Union of India which challenge the extension of time allowed by the MHA to NGOs to comply with the new FCRA conditions.Pursuant to the notification, the MHA has directed NGOs and individuals holding FCRA license to open bank accounts in the designated Branch of the State Of India at New Delhi latest by June 30, 2021 instead of the prior deadline of March 31, 2021. Furthermore, the MHA has also validated the license of these NGOs and individuals till September 2021 on the ground of Covid-19 exigency as many NGOs are currently involved in Covid-19 related relief work. These petitions sought the Court's directions to the Union of India to not further extend the deadline for opening bank accounts under Section 17 of the Foreign Contribution Regulation Act, 2010 in the notified branch of State Bank of India, New Delhi. Furthermore, directions were also sought to ensure that the Centre does not extend the validity of registration certificates issued to the NGOs under the FCRA beyond September 30, 2021. The pleas alleged that various NGOs have been misusing the FCRA regime to siphon off funds obtained from abroad by taking undue advantage of the ongoing Covid-19 pandemic. "Peremptory reliefs being sought are imperative in order to protect the Sovereignty and Integrity of India, as FCRA seeks to regulate the foreign contributions or donations to organizations and individuals in India, and to curb such contribution which are being used against National Interest in violation of the provisions of the FCRA. Taking the advantage of the ongoing pandemic situation, some of the NGOs, by circumventing the provisions of FCRA, are misusing the funds, and therefore, it is imperative to strictly adhere to the timeline of 30.6.2021," one of the pleas contends. Case Title: Noel Harper and Ors v. Union of India, Vinay Vinayak Joshi v. Union of India and Jeevan Jyothi Charitable Trust and others v. Union of IndiaClick here to read/download the order

Supreme Court Seeks Centre's Response To Plea Challenging FCRA Amendments

Aaratrika Bhaumik

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Supreme Court Seeks Centre's Response To Plea Challenging FCRA Amendments

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