2023 (10) TMI 891

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....2)(b) of the Foreign Contribution (Regulation) Act, 2010 (FCRA) read with Rule 14 (a) of the Foreign Contribution (Regulation) Rules, 2011 (FCRR). 2. The instant writ petition has been filed challenging the Order dated 27.02.2023 bearing No. F.No. II/ 21022/ 58(472) /2022 - FCRA (MU) and all consequential proceedings issued by the Respondent suspending the registration of the Petitioner bearing RC No. 231650007R under the FRRA, pending consideration of the cancellation of certificate of registration granted to the Petitioner. 3. The Petitioner has been granted certificate of registration under the FRRA. Allegations surfaced to the effect that the foreign contribution received by the Petitioner has been utilised for purposes other than....

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....he following order:- "In exercise of the powers conferred under section 13(2) of the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) read with rule 14 of the Foreign Contribution (Regulation} Rules, 2011, and in view of request vide letters dated 16.03.2023 and 15.05.2023 of Centre For Policy Research (CPR), Delhi an FCRA registered association (vide RC No. 231650007R) and the Order dated 29.08.2023 of the Hon'ble High Court of Delhi in Writ Petition (C) No. 11139/2023, the competent authority hereby permits CPR, Delhi, to utilize 25% of the foreign contribution amount lying in its custody (which works out to Rs. 1,79,10,236/-. The CPR, Delhi will maintain an account of expenses and furnish a copy of the same to this M....

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....y praying that it may be permitted to utilize the 25% of the whole unutilized foreign contribution including that which is lying in fixed deposits, government bonds etc. 11. Mr. Datar contends that there are 113 employees of the Petitioner and the salaries and other expenses which are payable till September, 2023, is Rs. 6,60,83,370/-. 12. Per contra, Ms. Arunima Dwivedi, learned CGSC for the Respondent, contends that 25% of the amount which is available in the current account alone can be taken into consideration. 13. Section 13(2) of the FCRA and Rule 14 of the FCRR reads as under:- "13 Suspension of certificate. - (1) Where the Central Government, for reasons to be recorded in writing, is satisfied that pending....

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....on of suspension of the certificate of registration." 14. This Court at this juncture is not entering into the debate as to whether a show cause notice is necessary to be issued to the entity before an order under Section 13 of the FCRA is passed. 15. Section 13(2) of the FCRA permits utilization of foreign contribution which is in custody of the person whose certificate has been suspended. There is no occasion to restrict the term "his custody" only to the current account. The amounts which are held in fixed deposits or in government bonds etc. are also unutilized foreign contributions which can be made available to the person whose account has been suspended pending the inquiry under Section 14 of the FCRA. 16. There is no reason....