Karnataka HC Quashes FEMA Case Against Greenpeace Citing Binding Precedent

Greenpeace Environment Trust Vs Union of India (Karnataka High Court)

Karnataka High Court has allowed writ petitions filed by the Greenpeace Environment Trust and another petitioner, effectively quashing a show cause notice and an associated complaint issued by regulatory authorities. The decision, delivered on [Date of current ruling, assuming it’s the date of the user prompt, as the text states “today” or “as such, I pass the following: ORDER”], hinged on the precedent set by a previous ruling concerning the Foreign Exchange Management Act, 1999 (FEMA).

The petitioners, in separate but identical pleas (W.P.No. 5691/2021 and W.P.No. 4711/2021), sought the nullification of a show cause notice dated February 25, 2020 (bearing T-4/SRO/SDE/BGZO/01/2020) issued by Respondent No. 2, and a complaint dated October 25, 2019 (bearing No. T-3/BGZO/96/2018) filed by Respondent No. 3 before Respondent No. 2. The core argument presented by the petitioners’ counsel was that the legal dispute in these cases was directly covered by a decision rendered by a Coordinate Bench of the same High Court.

The judicial precedent cited was the case of Kshithija Urs -v- Union of India and others, specifically in W.P. No. 1418/2021, with an order dated December 6, 2024. The petitioners argued that the proceedings against them had been initiated subsequent to the omission of Section 6(3)(b) of the Foreign Exchange Management Act, 1999. The court noted that there was no significant dispute regarding this particular position.