LI Network
Published on: October 17, 2023 at 14:22 IST
The Delhi High Court has ruled in favor of the Centre for Policy Research (CPR), a prominent Indian think-tank, permitting them to allocate 25% of their “unutilized funds” from fixed deposits to compensate their employees.
This decision follows CPR’s petition challenging the suspension of its license under the Foreign Contribution Regulation Act (FCRA) by the Union Government, which occurred on February 27.
Justice Subramonium Prasad presided over the case and granted approval for CPR’s application. He also scheduled a hearing on the writ petition for January 11. According to Rule 14 of FCRA Rules, if an FCRA certificate is suspended, up to 25% of the unutilized amount can be spent with the prior consent of the Central Government for the declared aims and objectives for which foreign contributions were received.
While the Central Government argued that funds held in fixed deposits should not be considered part of the unutilized amounts, Senior Advocate Arvind Datar, representing CPR, emphasized the necessity of releasing the funds as an interim measure. This would enable the think-tank to cover the unpaid salaries of its employees, who have not received compensation for the past six months.
Datar stressed the importance of CPR within India, describing it as the country’s premier think tank. CPR, founded in 1973, is subject to audits by the Comptroller and Auditor General (CAG) and the Home Ministry.
The Home Ministry concluded its audit in February 2022, and the CAG audit was finalized on April 22, 2022. The allegations against CPR in the show-cause notice date back to 2018 and 2019, and both audits found no wrongdoing.
The Union Ministry of Home Affairs initially suspended CPR’s FCRA license in February following surveys conducted by the Income Tax Department at the organization’s premises. Officials stated that there was prima facie evidence of non-compliance with FCRA provisions, which triggered the suspension. During this 180-day suspension period, organizations are prohibited from receiving foreign funding, and the utilization of foreign funds necessitates prior approval from the Union Government.
Case, titled “Centre for Policy Research v. Union of India & Ors.,
