The Supreme Court on Friday dismissed the Centre’s plea challenging a Madras High Court order that directed the renewal of registration of a trust under the Foreign Contribution (Regulation) Act, 2010 (FCRA), observing that there was no evidence of misuse of foreign donations by the organisation.
A bench of Justices Vikram Nath and Sandeep Mehta, while hearing the matter, pulled up the Centre for opposing the renewal. “What else? Have they misappropriated? Is there any abuse of the funds received by them? There is no such finding at all. If they are doing some social service, what is your problem?” the bench remarked. Dismissing the petition, the judges cautioned the government: “Don’t complicate things. Don’t further harass them.”
The Centre had approached the apex court against a June 2025 decision of the Madras High Court, which ordered renewal of FCRA registration of a trust established in 1982 for improving education and child welfare. The trust had obtained registration under Section 12 of the Act in 1983, with renewals at intervals, the latest being effective from November 2016 for five years.
In February 2021, the trust filed for renewal under Section 16 of the Act. However, in December 2021, its application was rejected, citing alleged violations of Section 7 of the FCRA, which prohibits the transfer of foreign contributions to other persons. A sister NGO faced a similar rejection during the same period.
The Madras High Court, after considering the matter, found no evidence of diversion of funds or violation of FCRA provisions. It observed:
“The report placed before this court in the sealed cover does not indicate even a single instance where any such diversion has taken place. As a matter of fact, there is no complaint against both the petitioner trust as well as the appellant that they have wrongly transferred any foreign contribution.”
It further emphasised that institutions functioning with foreign aid should not be viewed with suspicion unless there is clear evidence of misuse or threats to national or public interest. Accordingly, it directed the authorities to renew the registration within four weeks.
Before the Supreme Court, counsel for the Centre reiterated that the trust had allegedly violated Section 7, arguing that the right to receive foreign contributions was not a vested right and could not be claimed as a matter of entitlement. However, the bench remained unconvinced, noting the absence of findings indicating financial irregularities or abuse of funds.
With the Supreme Court’s dismissal of the plea, the Madras High Court’s directive in favour of the trust stands, ensuring the organisation’s continued eligibility to receive foreign donations for its child welfare initiatives.
