NGOS supporting public causes can’t be penalised
NEW DELHI: In a judgment that could provide relief to non-governmental organizations, the Supreme Court, on Friday, ruled that the ban on receiving foreign contributions under the Foreign Contribution Regulation Rules (FCRA Rules) should apply only to those organisations which take active part in politics .
Voluntary organisations which have no connection with party politics and active politics cannot be denied access to foreign contributions only because they habitually engage in or employ common methods of political action, the top court held.
It also read down a provision of the rules to ensure that only an organisation directly connected with politics came under their purview — and not one that was merely of a “political nature” or has “political interests”.
“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 penalized by being declared as an organisation of a political nature”, a bench headed by justice L Nageswara Rao ruled.
The bench, which also comprised justice Deepak Gupta, therefore, read down two crucial provisions in the FCRA Rules -rule 3(v) and rule 3(vi). The court, however, made it clear that organisations used by political parties for channelling foreign funds cannot escape the rigour of the law provided there is concrete evidence to substantiate such claims.
In arriving at its decision, the court took into account the objective of the Foreign Contribution Regulation Act (Act) and FCRA Rules which is to ensure that national interest is not compromised by political organisations receiving foreign funds.
“Fine judgment by SC to prevent misuse of the Foreign Contribution Regulation Act by government which is going after any organisation which opposes the government’s policies and malafide actions. Modi government amended FCRA to allow political parties to get foreign money while going after rights NGOS”, advocate Prashant Bhushan said on Twitter in response to the judgment.
The court was called upon by petitioner Indian Social Action Forum to declare sections 5(1) and 5(4) of the Act and rules 3(i), 3(v) and 3 (vi) of FCRA Rules unconstitutional. The central government defended the provisions arguing that the right to receive funding is not a fundamental right.
SC MADE IT CLEAR THAT ORGANISATIONS USED BY PARTIES FOR CHANNELLING FOREIGN FUNDS CANNOT ESCAPE THE RIGOUR OF THE LAW PROVIDED THERE IS CONCRETE EVIDENCE TO SUBSTANTIATE CLAIMS