Kriti Agrawal
Delhi High Court directed Ministry of Home Affairs to consider extending the deadline for Non-Governmental Organizations (NGOs) seeking to receive foreign contributions to open a Foreign Contribution (Regulation) Act (FCRA) account.
Two Petitioners (NGOs based in Telangana and Andhra Pradesh) raised an issue about the creation of an FCRA account with the SBI in New Delhi before the Bench Justice Prathiba M. Singh.
The NGO claimed that an amendment to Section 17 of the Foreign Contribution Regulation Act, 2010 and a public notice issued by the Ministry of Home Affairs in October 2020 made it mandatory for NGOs that receive foreign contributions to open an FCRA account with the State Bank of India, New Delhi Main Branch.
NGOs claimed that they are having tremendous difficulty both in obtaining foreign contributions and in obtaining an FCRA account with the State Bank of India, New Delhi Main Branch.
As a result, a request was made to extend the deadline for receiving foreign donations until April 1, 2021 by six months, and to direct the MHA to issue FC6C certifications to the Petitioners as soon as possible.
The Court observed that various organizations, including NGOs, have approached the Court regarding the opening of their FCRA accounts and the clearances by the MHA.
Court stated that, “The amendment to Section 17 is not challenged in these petitions; nevertheless, due to the second wave of the Covid-19 pandemic and numerous difficulties that the organizations are alleged to be suffering, the MHA shall evaluate whether the deadline of 1st April, 2021 can be extended and, if so, for how long.”
The Respondents’ Counsel was further directed to seek instructions on whether, while the MHA’s approval is pending, the Petitioners could be allowed to receive the foreign contributions as long as they keep records of the same, in accordance with the provisions of the Foreign Contribution Regulation Act, 2010, in as much as non-receipt of this contribution would result in non-rendering of services.
