Mumbai: In what may come as a huge relief to former Additional Solicitor of India, Indira Jaisingh, the Bombay High Court on Monday ordered the domestic accounts of her NGO The Lawyers Collective be de-freezed. While giving the order, the single bench of Justice M.S. Sonak said the “Centre’s allegations are quite vague”.
Justice Sonak was hearing the appeal filed by the NGO against the Charity Commissioner’s order passed on November 27, 2016 which said that “the money in bank accounts be frozen with immediate effect and shall be in custody of the bank in accordance with Foreign Contribution Regulation Act Rules”.
The court said on Monday that “the Central Government cannot stifle the very functioning and the activities of individuals or associations, provided, such activities and such functioning is not otherwise in breach of any legal provisions. There is no allegation of siphoning of amounts from the FCRA Accounts. The allegations of mixing or flow from out of foreign contributions, are quite vague and bereft of details or reasoning.”
The Bench said, “As noted earlier, at least prima facie , the allegations are quite vague, when it comes to the charge of mixing of foreign contribution with local/domestic funds. The parameters of sections of the FCRA are not attracted to the facts and circumstances of the present case,” read the order.
Senior Counsel Aspi Chinoy, appearing for the NGO, said it was clearly not a case where the NGO had either ceased to exist or become defunct. Therefore, there was no case made out for exercise of powers under Section 22 (disposal of assets created out of foreign contribution) of the FCRA. He said directions in the impugned order have a “chilling effect upon the fundamental as well as other rights of the appellants”.
Additional Solicitor General of India Anil Singh representing the Centre said there has been a violation of Section 7 (Prohibition to transfer foreign contribution to other person) in this case. He also submitted that there is no infirmity whatsoever in freezing other accounts to which money has flown out from the FCRA Accounts.
After the order was passed, Mr. Singh sought a stay on the order. However the court said a direction has been issued to the appellants that they shall maintain and file quarterly reports of the amounts utilised (spent) from these accounts, hence there was no need to grant a stay.
