Petitioner Allowed to Use 25% of Foreign Contribution Funds for Operations; Must Submit Periodic FCRA Account Statements.

The court permitted the petitioner to utilize 25% of the total foreign contribution funds, including those in fixed deposits and government bonds, for daily operations. The petitioner was required to periodically submit a comprehensive statement of its FCRA account, deposits, and expenses. The judgment clarified that the phrase "his custody" in Section 13(2) of FCRA extends beyond the current account, enabling the use of unspent funds from multiple sources.

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Issues:
The issues involved in the judgment include the application for direction to release 25% of foreign contribution funds, challenge to the order suspending registration, interpretation of Section 13(2)(b) of FCRA, and the calculation of the amount available for utilization.

Application for Direction to Release 25% of Foreign Contribution Funds:
The petitioner filed an application seeking a direction to release 25% of the total foreign contribution funds held under Section 13(2)(b) of FCRA read with Rule 14(a) of FCRR. The respondent had suspended the registration of the petitioner pending consideration of cancellation due to alleged misuse of foreign contributions.

Challenge to Order Suspending Registration:
The petitioner challenged the order suspending its registration under FCRA, alleging that the foreign contributions were being utilized for purposes other than those registered, leading to a violation of FCRA. The respondent had suspended the certificate pending further inquiry.

Interpretation of Section 13(2)(b) of FCRA:
Section 13(2)(b) of FCRA prohibits the receipt of foreign contributions during the suspension period and allows utilization of such funds with prior approval. The petitioner sought to utilize 25% of the unspent amount, including funds in fixed deposits and government bonds, for declared aims and objects.

Calculation of Amount Available for Utilization:
The petitioner argued that the respondent only considered the current bank account balance for calculating the 25% of the contribution available for utilization. However, the petitioner claimed that unutilized amounts in different deposit accounts and schemes should also be included. The petitioner faced financial difficulties, unable to pay employee salaries, and sought permission to use the entire unutilized foreign contribution.

Conclusion:
The court allowed the petitioner to utilize 25% of the total foreign contribution funds, including amounts in fixed deposits and government bonds, for day-to-day activities. The petitioner was directed to submit a complete statement of its FCRA account, deposits, and expenses periodically. The judgment clarified that the term "his custody" in Section 13(2) of FCRA is not limited to the current account, allowing for the utilization of unspent funds from various sources.

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