FCRA DRAFT

FCRA DRAFT
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The bench was hearing a batch of petitions challenging the amendments in the Foreign Contributions (Regulation) Act (FCRA) along with the rule mandating the NGOs to open a primary account in the State Bank of India's main branch at Delhi.

Earlier, the Central Government had told the Supreme Court there exists no fundamental right to unbridled foreign contribution, while replying to a plea challenging the Ministry of Home Affairs (MHA), Government of India’s notification dated May 18, 2021, which extended the date for compliance of specific provisions of the Foreign Contribution Regulation (Amendment) Act, 2020.

The Centre has also highlighted that with respect to plea impugning the amendments on the ground of need of foreign aid during the pandemic, a connected petition has questioned the bonafides of such a plea alleging that, "taking the shield of the Covid-19 pandemic and their relief work, several NGOs and individuals are actually misusing the FCRA regime to siphon off funds obtained from abroad for purposes" outside the purview of the FCRA.

On the last occasion the Supreme Court had issued notice in on of the petition in the batch alleging that taking shield of the Covid pandemic, several NGOs and individuals are misusing the relaxation being provided by the Ministry of Home Affairs under the Foreign Contribution Regulation (Amendment) Act, 2020 (FCRA).

The petitioner, namely Vinay Vinayak Joshi alleged that he had an apprehension that taking the shield of the Covid pandemic and their work for covid relief, several NGOs and individuals are actually misusing the FCRA regime to siphon off funds obtained from abroad for purposes other than those permitted under FCRA.

The petitioner filed a petition before the Apex Court for being aggrieved by the notification issued by the Ministry of Home Affairs (MHA), Government of India extending the last date for NGOs and individuals, who receive foreign funds, to open the mandatory FCRA Bank Account till June 30, 2021, and thereby extending the validity of the Registration Certificate of all FCRA license holders till September 2021.

Case Title: Noel Harper and Ors. Vs. Union of India and Anr and other connected petitions

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