SC to hear pleas challenging amendments in Foreign Contribution (Regulation) Act on Nov 9

The Supreme Court on Thursday observed that the activities of NGOs were being stalled by virtue of amendments made in the Foreign Contribution (Regulation) Act (FRCA), 2010.

The bench of Justices AM Khanwilkar, Dinesh Maheshwari and CT Ravikumar said, "Nobody is opposed to foreign contribution and this Act recognises it. The question is if the regulation under the Act for receiving such funds is extreme or not."

The court was hearing a batch of pleas challenging the Foreign Contributions Regulation (Amendment) Act 2020 and the Ministry of Home Affair's May 18, 2021 notification extending the date for compliance with specific provisions of the Act.

The petitions challenged the provisions of the FCRA prohibiting the transfer of foreign funds (Section 7), requiring Aadhaar as identification for prior approval, registration etc (Section 12A) and mandating opening of FCRA primary account exclusively in a branch of State Bank of India in New Delhi notified by the Centre (Section 17).

However, the Centre has stated that there is "no fundamental right to receive unbridled foreign contribution" and hence the petitions filed under Article 32 of the Constitution were not maintainable.

The Bench then adjourned the matter to November 9.

( With inputs from ANI )