The New Indian Express ·
FCRA cancellation only bars foreign funds: Delhi HC rejects Centre's plea over NGO's withdrawal of funds
NEW DELHI: The Delhi High Court on Thursday dismissed the Centre's plea challenging an order allowing civil society group Commonwealth Human Rights Initiative (CHRI), whose FCRA registration was cancelled in 2025, to withdraw Rs 20 lakh from its "reserve fund" to meet operational expenses.
A bench of Chief Justice D K Upadhyaya and Justice Tejas Karia said cancellation of an organisation's FCRA registration does not mean that it ceases to function.
"Cancellation of FCRA registration merely means that the organisation cannot receive foreign funds," the bench said.
The bench dismissed the Centre's appeal against a May 19 order of a single judge, and directed the government to approach the single judge with an application seeking revocation of the order. It also requested the single judge to expedite the hearing in the matter.
The Centre had challenged the single judge's order, arguing that it was passed on a "misreading" of the Foreign Contribution (Regulation) Act (FCRA).
The Centre also contended that the interim order was passed without giving the authorities an opportunity to respond to CHRI's plea seeking interim relief.
In its May 19 order, the single-judge bench had permitted CHRI to withdraw Rs 20 lakh from its "reserve funds" maintained with the Bank of India.
The court had allowed CHRI to use the amount for various recurring expenses related to its operations and directed it to get the expenditure authenticated by a chartered accountant.
The order was passed while hearing CHRI's plea challenging the cancellation of its FCRA registration.
CHRI had claimed in its petition that the Centre cancelled its registration certificate on September 12, 2024, without providing it an opportunity to be heard, thereby violating principles of natural justice as well as its statutory and fundamental rights.
The organisation had described the cancellation order as "unreasonable, unreasoned, vague, without any application of mind, and based on wholly incorrect facts".
It had also disputed the allegations of FCRA violations, saying the order was based on reports of a central security agency and other inputs available with the ministry that were not within its knowledge.