2023 (4) TMI 974 - HC - FEMA

Court allows petitioners to upload 2019-2020 returns with new SBI account, no penalty within a month

Shree Swaminarayan Mandir, Kutch Nav Nirman Abhiyan, Shri Swaminarayan Dwishatabdi Medical And Charitable Trust Versus Union Of India

The court allowed the petitioners to upload their annual returns for the year 2019-2020 by specifying the subsequently opened SBI account number. No ... Foreign Contribution Regulation - Non-filing of the returns - annual returns for the years 2019-2020 were to be uploaded in Form FC-4 for which SBI account as of 31st March, 2020 was needed, the details of the SBI bank account could not be given - Petitioner seeking directions to the Respondent – Ministry of Home Affairs, Union of India to allow the Petitioners to fill and upload Form FC-4 on the Respondent’s portal in order to enable them to file the annual returns for the financial year 2019-2020 - whether the SBI bank account could have been sought for as of 31st March 2020, when the amendment itself came into effect later i.e., in September 2020? - HELD THAT:- In view of the reasoning given in the said order in WNS Cares Foundation [2023 (1) TMI 944 - DELHI HIGH COURT] as held receipt of foreign contribution “as on 31st March of the year ending” has to be provided and the bank account has to be in the SBI, Sansad Marg branch. Since the Petitioner No.1 opened its account in August, 2021 and in any case, as on 31st March, 2020, the Foreign Contribution Regulation (Amendment) Act, 2020, had not come into effect, there appears to be some justification in the Petitioners’ case.Petitioner No.1 having opened its FCRA account in August, 2021 is, accordingly, permitted to fill up the said details of its FCRA account in serial no.7 of the Form FC – 4 and submit the same. In this case the Petitioners also having already opened their bank accounts with SBI Sansad Marg Branch, the Petitioners are permitted to upload their annual returns for the year 2019-2020 by specifying the SBI account number of the account which was subsequently opened by them. Issues Involved:The issues in the judgment include seeking directions to allow filling and uploading Form FC-4 for filing annual returns for the financial year 2019-2020, interpretation of the Foreign Contribution Regulation Act, 2010 (FCRA) amendment, and the requirement of SBI account details for foreign contribution receipts.Comprehensive details of the judgment for each issue involved:1. The petitions were filed seeking directions to allow filling and uploading Form FC-4 for filing annual returns for the financial year 2019-2020. The Foreign Contribution Regulation Act, 2010 (FCRA) was amended, and the amended Section 17 required foreign contributions to be received in an account designated as 'FCRA Account' by the bank. The petitioners faced technical deficiencies as the Form FC-4 required SBI account details as of 31st March 2020, which could not be provided due to the timeline of the FCRA amendment. The court noted that similar issues had been considered previously in other cases.2. In a previous case, it was observed that the Form FC-4 required details of the FCRA account as on 31st March of the relevant year, specifically in the SBI branch. Since the petitioners had opened their FCRA accounts later, they were permitted to fill up the account details in the form and submit the same. No coercive steps were to be taken against the petitioners for opening the FCRA account belatedly, as they claimed not to have received any foreign contributions in the relevant years.3. The court allowed the petitioners to upload their annual returns for the year 2019-2020 by specifying the subsequently opened SBI account number. If the returns were uploaded within one month, no penalty would be charged. The petitions were disposed of in these terms, and all pending applications were also disposed of accordingly.This summary provides a detailed overview of the judgment, addressing the issues involved and the court's decision on each aspect of the case.