The Delhi High Court on Monday issued a notice to the Central government, seeking its response on a petition filed by the Commonwealth Human Rights Initiative (CHRI), which challenged the cancellation of its Foreign Contribution (Regulation) Act (FCRA) registration. Justice Sachin Datta presided over the case, granting the authorities time until April to submit their reply.
CHRI, a prominent civil society organization, faced a suspension of its FCRA registration by the Centre in June 2021, which was eventually canceled on September 12, 2024. The organization claims that the cancellation was executed without a fair hearing, thus violating the principles of natural justice, as well as infringing upon its statutory and fundamental rights.
The petition lodged by CHRI argued that the cancellation order was “unreasonable, unreasoned, vague, and based on wholly incorrect facts.” It also contended that the allegations of violating the FCRA were misconceived. According to the plea, the order was primarily based on certain reports from a central security agency and other inputs, details of which were not disclosed to CHRI.
The organization further alleged that the authorities had not proven that CHRI was guilty of misusing or diverting its funds. It emphasized that all foreign contributions were utilized strictly for the purposes for which they were granted, dismissing any claims of misuse or diversion.
“In the absence of such findings, and without any law or policy restricting the utilization of foreign contributions abroad, there appears to be no justifiable basis for the cancellation of the petitioner’s certificate of registration on grounds of misutilization or diversion of funds,” stated the plea.
CHRI also highlighted the disproportionate nature of the action, criticizing the authorities for not demonstrating how the cancellation of the registration served the national interest. The organization described the timing of the violations as alleged after an “undue delay,” which further complicates the legitimacy of the cancellation.
Since the suspension of its registration, CHRI’s bank accounts have been frozen, severely affecting its operational capabilities and welfare activities. “This has severely restricted the petitioner’s programs and activities, leaving us unable to pay salaries to our staff members and consultants, whose livelihoods depend on it,” CHRI explained in its plea.
