Challenge to MHA Notification extending date for opening bank accounts under FCRA (Amendment) Act: Justice Sanjiv Khanna recuses from hearing

Supreme Court judge Justice Sanjiv Khanna today recused from hearing a plea which challenges the Ministry of Home Affairs, Government of India Notification dated May 18, 2021 that extends the date for compliance of the specific provisions of the Foreign Contribution Regulation (Amendment) Act, 2020.

The matter today was listed before the bench of Justice AM Khanwilkar and Justice Sanjiv Khanna.

Under the notification, MHA has given the NGOs and the individuals holding FCRA license to open the Bank Account in the designated Branch of the State Bank Of India at New Delhi latest by 30.6.2021, instead of the last deadline of 31.3.2021. Similarly, the MHA has also validated the license of these NGOs and individuals till Sep 2021, though both these decisions have been taken only on the ground of Covid exigency, as many NGOs are involved in covid relief work.

The plea seeks 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.

“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,” plea states.

The petitioner has averred that several NGOs and individuals taking the shield of CoVID pandemic and their work for CoVID relief are misusing the FCRA regime to siphon off funds obtained from abroad for purposes other than those permitted under FCRA.

While placing reliance on the case of Teesta Atul Seetalvad vs. State Of Gujarat [Criminal Appeal No. 1099/2017, decided on 15.12.2017], the plea states that in the past too apart from the fact of misusing foreign funds there have been many instances where cases of alleged misappropriation of funds by NGOs have been highlighted and acted upon.

The plea also seeks for directing the Union of India to not extend the validity of certificates issued to the NGO's under the FCRA beyond September 30, 2021 on pandemic period.

It further seeks for issuing directions to Union of India & Niti Ayog to strictly maintain and monitor the directory of the NGO's receiving foreign contributions in their concerned FCRA account & ensure full compliance of FCRA (Amendment) Act, 2020.

The matter will now be heard by an appropriate bench of which Justice Sanjiv Khanna is not a part.

Case Title: Vinay Joshi v. Union of India