SC relief to NGOs in foreign funding case

Support to public causes can’t deprive organisation of right to receive funds

The Supreme Court on Friday said that any organisation supporting public causes without political goals or objectives cannot be deprived of funds from foreign contributors.

A bench of Justices L. Nageswara Rao and Deepak Gupta said the organisations not associated with any political party, but demanding citizens’ rights through legitimate methods of expressing dissent, cannot be penalised.

Making a distinction between a political outfit and an organisation that supports public causes by resorting to “legitimate means of dissent”, the court said, “Support to public causes by resorting to legitimate means of dissent like bandh, hartal etc. cannot deprive an organisation of its legitimate right of receiving foreign contribution.”

“Any organisation which supports the cause of a group of citizens agitating for their rights without a political goal or objective cannot be penalised,” said the bench.

However, Justice Nageswara Rao said, “We make it clear that organisations used for channelling foreign funds by political parties cannot escape the rigour of the

Act provided there is concrete material.”

The court said this while disposing off an appeal by Indian Social Action Forum (INSAF) challenging the Sections 5(1) and 5(4) of the Foreign Contribution (Regulation) Act, 2010 and Rules 3 (i), 3 (v) and 3 (vi) of the Foreign Contribution (Regulation) Rules, 2011 being violative of Articles 14, 19 (1) (a), 19 (1) (c) and 21 of the Constitution.

The INSAF had approached the top court challenging certain provisions of the FCRA, claiming it violated certain fundamental rights as guaranteed by the Constitution. “To save this provision from being declared unconstitutional, we hold it is only those organisations that have connection with active politics, or take part in politics, that are covered,” Justice Rao said.

In its plea before the high court, INSAF had said that it firmly believes in a secular and peaceful social order and opposes communalism and the targeted attacks on the lives and rights of people including religious minorities.

SC said that the support to public causes by resorting to legitimate means of dissent cannot deprive an organisation of its legitimate right of receiving foreign contribution