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Synopsis

The Delhi High Court on Monday allowed the plea filed by think tank Centre for Policy Research (CPR) to utilise 25% of its funds in its fixed deposits (FD) for salaries months after its licence under the Foreign Contribution Regulation Act (FCRA) was suspended in February.

The bench of Justice Subramonium Prasad said, “Application allowed. List the writ for hearing on January 11”.

Notably, the court, on October 11, had ‘reserved the order’ in the plea.

Court was dealing with a plea by CPR challenging the suspension of FCRA licence by the Ministry of Home Affairs (MHA) on February 27, 2023. Its application was filed in March and it was pending for the last six months. The Central government had initiated an inquiry.

Following the suspension, the CPR’s accounts were frozen.

Senior Advocate Arvind Datar, on behalf of CPR, had argued that due to FCRA licence suspension, the operation of CPR had been stopped as it received 70 per cent of its funds from overseas. He had also submitted that due to non-payment of salaries for the last six months, 80 per cent of scientists and employees had left the organization.

“I am begging to release the salaries…You may not like any dissent in the country but what have these poor employees done? The Home Ministry cleared in its audit, CAG cleared me and then suddenly this happened. It is extremely sad if you are going to close down Indian think-tanks like this…one small dissent and this is done. This is a pattern”, he had submitted.

Counsel appearing for MHA, opposed CPR’s plea to allow the think tank to use a portion of its funds, saying it would have “grave ramifications” and would become a precedent.

On the contrary, the counsel for the Central Government submitted that proceedings had been initiated on the basis of material government had against the NGO. It alleged that CPR transferred foreign contributions to other entities and deposited the contributions in non-designated accounts in violation of FCRA.

The court had asked the Home Ministry, last week, “If they want to survive, they have 20 crore and 1/4th will be 5 crore. If you permit them 1/4th, what is the prejudice that will cause? You need to decide by tomorrow otherwise I am closing the matter tomorrow. Why cannot [CPR] be permitted to break the FDs and pay the salaries?"

About CPR

CPR conducts advanced and in-depth research on a wide range of policy-relevant issues, with a focus on India’s 21st-century challenges. Through its research and policymaking engagements, CPR works closely with policymakers with an aim to place India firmly on the path of building a twenty-first-century policy ecosystem.

Case Title: Centre for Policy Research v. Union of India