In a major development for the non-profit sector, the Delhi High Court on Tuesday permitted the Commonwealth Human Rights Initiative (CHRI) to withdraw Rs 20 lakh from its own reserve funds. The decision offers critical interim relief to the NGO, which has been struggling to pay its consultants and cover basic operational costs after its foreign funding license was axed and local donations dried up.
Justice Purushaindra Kaurav ruled that the NGO could directly access and disburse the amount, overriding objections from the Central government. The court ordered that the funds be used for recurring expenses and that all expenditures be authenticated by a chartered accountant, with the complete details of the disbursal to be submitted at the next hearing.
A Financial Standoff: ‘Death by a Thousand Cuts’
The court’s decision comes in response to an urgent plea by CHRI. On April 24, senior advocate Arvind Datar, representing the NGO, warned the court that CHRI’s domestic funds would completely run out by June 30. Without immediate relief, the organization—founded by the eminent late jurist Soli Sorabjee—would be unable to pay its staff or sustain basic operations.
CHRI’s financial troubles multiplied after March 31, when authorities denied the renewal of its 80G registration under the Income Tax Act. The 80G status allows domestic donors to claim tax exemptions. Because of the denial—which authorities blamed on the NGO’s cancelled Foreign Contribution Regulation Act (FCRA) status—local donations ground to a halt.
Representing the Centre, Additional Solicitor General (ASG) Chetan Sharma proposed an alternative: the government could directly disburse salaries to CHRI’s staff once the NGO provided their details. Sharma cited an April precedent involving the South Asia Foundation (SAF), another non-profit that accepted direct government disbursements after its FCRA license was cancelled.
However, Datar strongly opposed this route, describing the bureaucratic delay as a slow demise.
“The whole thing is death by a thousand cuts, I’m very sorry to say,” Datar argued, explaining that waiting for government verification and response would drag the process into July, well past the June 30 deadline.
Datar emphasized that CHRI does not employ full-time staff, but instead relies on contract consultants who prepare project reports. “Consultancy charges are there. The amount is not much… I have Rs 4 crore of deposits. Suppose I draw [from there], pay the salaries, pay the charges, and then get a chartered accountant certificate and file it with them [the Centre].”
Political Tensions Flare Over ‘George Soros’ Reference
During the tense hearing, the legal debate veered into highly charged political territory.
When Justice Kaurav observed that organizations like CHRI “are working for quite a long time,” ASG Sharma countered sharply.
“They are working in areas where they should not be working,” Sharma argued. “Even now, they are aligning with people whose name I cannot take. If I take his name, he is George Soros.”
Despite the Centre’s objections, Justice Kaurav maintained that the request was reasonable, pointing out that the NGO was not asking the state for financial aid.
“It is not that Rs 25 lakh we are directing to be released by the Government of India. This is the petitioner’s own fund. This Rs 25 lakh does not seem unreasonable,” the judge remarked, ultimately authorizing the release of Rs 20 lakh.
The Broader Crackdown on NGOs
The legal battle highlights a broader, controversial crackdown on civil society organizations in India. Datar raised this point in court, noting that several prominent institutions are facing similar paralysis.
“All NGOs have been hit across the board,” Datar said, highlighting the Centre for Policy Research (CPR). “It was the only Indian think tank in the global 20 think tanks for policy research… Four people are working now. Take humanitarian consideration.”
CHRI’s own legal history with the Ministry of Home Affairs (MHA) has been a game of regulatory tug-of-war:
- April 2022: The MHA first cancelled CHRI’s FCRA registration.
- July 2024: The Delhi High Court set aside the April 2022 cancellation.
- September 2024: The MHA cancelled the registration for a second time.
- January 2025: CHRI challenged this second cancellation in the Delhi High Court, where the matter remains pending.
While the broader battle over its FCRA status continues to play out in court, Tuesday’s ruling ensures that the Soli Sorabjee-founded organization can keep its doors open for the immediate future using its own Rs 4 crore reserves.
