A bench of Justice Vibhu Bakhru issued a notice to the Union Home Ministry and asked it to keep the freezed foreign donations as "interest-earning fixed deposit" till further orders.
The Intelligence Bureau had, in its report, recommended cancellation of permission given to 'Greenpeace' alleging that the Indian-arm of of the NGO has been collecting funds from abroad.
The Home Ministry has been directed by the HC to file the reply as to whether the foreign contributions of Euros 23, 5000 (Rs 1.87 crore) be allowed to be credited in the NGO's account with the IDBI bank in Chennai.
The court, meanwhile, asked the ministry to file its counter affidavit within three weeks.
Jasmeet Singh, standing counsel for the Home Ministry, informed the court that he will seek instructions and file a short affidavit.
The court was hearing a petition filed by 'Greenpeace India Society' (GPIS) alleging that the Centre has taken action "without any rhyme or reason and without complying with the provisions of Foreign Contribution Regulation Act (FCRA)".
This directive, issued on June 13, put on hold the direct funding of the NGO from abroad since each transaction has to be cleared on a case-to-case basis by the RBI.
Advocate Sanjay Parikh, appearing for Greenpeace, said the petition has been filed against the "uncommunicated and illegal prohibition imposed by the MHA in not allowing credit of the foreign funds in the petitioner's FCRA Bank Account...In IDBI Bank Ltd, Chennai".
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