2021 (10) TMI 1130 - HC - FEMA

Government discretion key in Foreign Contribution Act; Competent Authority instructed to address issues promptly

KARMODAYA CHARITABLE TRUST Versus UNION OF INDIA

KARMODAYA CHARITABLE TRUST Versus UNION OF INDIA - 2021 (377) E.L.T. 503 (Del.) Issues:- Petition seeking directions to exempt registered associations from prior permission under the Foreign Contribution (Regulation) Act, 2010 to receive foreign contributions for COVID-19 relief.- Petition seeking directions to relax pre-conditions for receiving foreign contributions in the form of donations under the Act.Analysis:1. The petition requested directions to exempt registered associations from prior permission under Section 11 of the Foreign Contribution (Regulation) Act, 2010, to receive foreign contributions for COVID-19 relief. The court noted that exemptions and relaxations under statutes are discretionary powers of the Government, not a matter of right. The court emphasized that it is not within the court's jurisdiction to direct the Government on how to exercise such powers. The petitioner had not approached the Competent Authority seeking exemption before filing the petition, which was acknowledged during the hearing.2. The court directed the Competent Authority under the concerned Ministry to consider the petition as a representation and address the issues raised by the petitioner in accordance with relevant laws, rules, regulations, and government policies. The Competent Authority was instructed to resolve the grievances raised by the petitioner promptly, considering the relief sought. The court emphasized the importance of adhering to applicable legal frameworks while addressing the petitioner's concerns.3. The petition also sought directions to relax stringent pre-conditions for receiving foreign contributions in the form of donations under the Act. The court acknowledged the petitioner's concerns but reiterated that decisions regarding exemptions and relaxations fall within the Government's discretion. The court's directive to the Competent Authority aimed to ensure a lawful and timely resolution of the issues raised in the petition, emphasizing the need to consider the nature of relief sought while addressing the petitioner's grievances.4. In conclusion, the court disposed of the writ petition and pending applications, instructing the Competent Authority to treat the petition as a representation and address the issues raised by the petitioner in line with legal provisions and government policies. The judgment highlighted the importance of following due process and relevant legal frameworks while considering requests for exemptions or relaxations under the Foreign Contribution (Regulation) Act, 2010.