Non-profit granted relief on FCRA account details filing due to retrospective amendments

The court allowed the petitioners, a non-profit company under FCRA, to file annual returns without FCRA account details for specific years due to challenges arising from retrospective amendments. The court permitted the petitioners to fill the FCRA account details in the form despite delays in opening the account. No coercive steps or penalties were imposed for the delayed account opening, given no foreign contributions were received in the relevant years. The petitioners were granted one month to submit the returns without facing penalties, and the case was resolved along with pending applications.

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Issues:
1. Amendment of Form FC-4 for filing annual returns without FCRA account details.
2. Requirement of FCRA account as per amended FCRA provisions.
3. Inability to submit Form FC-4 online due to retrospective amendment.
4. Delay in opening FCRA account and filling Form FC-4 details.
5. Coercive steps and penalties for delayed filing of annual returns.

Analysis:
1. The petitioners sought directions to amend Form FC-4 to file annual returns without FCRA account details for FY 2019-2020 and FY 2020-2021. The petitioners, a non-profit company registered under FCRA, faced challenges due to amendments requiring a designated FCRA account at SBI, New Delhi Main Branch.

2. The FCRA was amended in 2020, mandating foreign contributions to be received in a designated FCRA account at SBI, New Delhi. The petitioners, having complied with FCRA rules previously, faced difficulties in retrospectively providing FCRA account details as per the amended provisions.

3. The petitioners highlighted the issue of inability to submit Form FC-4 online for years prior to the amendment's effective date. They argued that the online portal design made it impossible to file returns for FY 2019-2020 and FY 2020-2021 without the designated FCRA account details.

4. Despite opening the FCRA account in August 2021, the petitioners hesitated to fill Form FC-4 details due to the requirement stating "as on 31st March." The court acknowledged the timing of the FCRA amendment and permitted the petitioners to fill the FCRA account details in the form.

5. The court directed that no coercive steps or penalties be imposed on the petitioners for the delayed opening of the FCRA account, considering no foreign contributions were received in the relevant years. The petitioners were given one month to file the returns without facing penalties, and the case was disposed of along with pending applications.

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