HC refuses to defreeze NGO's account to use foreign funds

The Delhi High Court today refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".
"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said.
It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding.

The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA).
The court has fixed the matter for further hearing on January 17.
Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest".

"We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said.

He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.
Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks.
The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said.

The court was hearing the plea of CPSC, better known by
its programme unit People's Watch, which sought setting aside of the government's October 29 decision refusing to renew its registration.
The NGO said restriction of its funds "has caused a great amount of harm and it will result in a complete halt of its charitable activities which will affect a vast number of people".
The central government counsel countered saying the NGO continues to operate and only the foreign contribution has been restricted.
The MHA had recently denied FCRA registration to 25 NGOs for being allegedly involved in anti-national activities and derecognised over 11,000 such organisations for failing to apply for renewal.

CPSC has contended that the only reason it was given for non-renewal of its registration was -- "On the basis of a field agency report, the competent authority has decided to refuse your application for renewal".
It has said in its plea that under the FCRA Rules, its application for renewal was to be decided in 90 days and in case of delay, reasons had to be communicated to it.
The NGO has contended that since the prescribed procedures were not followed, its registration would be deemed to have been renewed after expiry of 90 days from March 14, when it had applied for renewal.

To this the counsel for the MHA submitted that they are not obliged to inform the NGO about such decision.