2013 (9) TMI 1282

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....registration of the petitioner association was suspended in exercise of the powers conferred upon the Central Government under Section 13 of the Foreign Contribution (Regulation) Act, 2010. While suspending the said registration, it was also directed that the petitioner association can utilize the funds available with it, only after taking prior permission of the Central Government in terms of Section 13(2)(b) of the FARA, 2010. Being aggrieved from the aforesaid order dated 30.4.2013, the petitioner is before this Court seeking setting aside of the said order. 2. In their counter-affidavit, the respondents have stated that reports were received by the Government which revealed that foreign funds received by the petitioner were being transf....

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....ic interest to cancel the certificate; or (d) the holder of certificate has violated any of the provisions of this Act or rules or order made thereunder; or (e) if the holder of the certificate has not been engaged in any reasonable activity in its chosen field for the benefit of the society for two consecutive years or has become defunct." 4. The scheme of the Act, therefore, is that if the Central Government, after making such enquiry as it may deem appropriate in this regard, is of the opinion that it is necessary in the public interest to do so, it can cancel the certificate after giving a reasonable opportunity of hearing to the organization concerned. If, while considering the cancellation of registration in terms....

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....ion 13, the respondent has taken the plea that recording of the reasons is not a mandatory requirement, the plea, in my view, is wholly misconceived. A careful perusal of sub-section (1) of Section 13 would show that the requirement of recording reasons which necessitate suspension of the organization is a mandatory requirement and the word 'may' has been used only in the context of giving a discretion to the Central Government whether to suspend the registration or not. In other words, the Central Government may or may not suspend the certificate of an organization, pending consideration of cancellation of the said certificate but, if the Government decides to suspend such certificate it can be done only for reasons to be recorded and such....