Whether Foreign Contribution (Regulation) Act 2010 (FCRA, 2010) (read with rules) allows Central Government to freely decide whether an organisation is political or not?
What is Foreign Contribution (Regulation) Act 2010?
The Foreign Contribution (Regulation) Act 2010 and rules framed under it (the ‘FCRA’ or ‘Act’) regulate contribution by non-governmental organisations (‘NGO’) in India. The objective is to prevent use of foreign contribution or foreign hospitality for any activity detrimental to the national interest.
Case Law Discussed- Indian Social Action Forum (INSAF) Vs. Union of India (Supreme Court); Civil Appeal No.1510 of 2020; Dated-March 6th 2020
Background of the case law
This judgement comes in the background of a petition filed by the Indian Social Action Forum (INSAF) challenging certain provisions of the Foreign Contribution Regulation Act (FCRA), 2011 and the Foreign Contribution (Regulations) Rules of 2011.
Section 3(1)(e) of the Act bans the receipt of foreign contribution by a political party or office-bearer thereof.
Provisions Challenged Before Supreme Court
Various provisions of were challenged before Supreme Court and called as Vague and Arbitrary
- Section 5(1) of the Act was challenged for being vague as it allowed the Centre to decide freely whether a seemingly non-political organisation was actually political in nature.
- The petitioners also attacked Section 5(4) of the Act on the ground that it did not exactly identify the authority before which an organisation could represent its grievance.
- Various clauses of the Rules {Rules 3(i), 3(v) and 3(vi)} were also challenged. This provision identified the various types of ‘political’ activities for which organisations whose foreign funding could be stopped by the government
- The appellant has filed a Writ Petition in the High Court of Delhi that S. 5(1) and 5(4) of the Act, R. 3(i) 3(v) and 3(vi) are violative of Article 14, 19 and 21 of the Constitution of India.
Analysis made by Supreme Court
