IMPORTANT JUDGEMENT PRONOUNCED TODAY in HC of Delhi in W.P.(C) 6031/2021 & CM APPL. 19077/2021, CM APPL. 19078/2021 on 01.07.2021
As per Section 12 of the FCR (Amendment) Act, 2020 amended Section 17 of the FCRA and, by virtue of said amendment, foreign contribution can be received only in a branch of the State Bank of India (SBI) located at New Delhi, to be specified by notification by the Central Government.
In tandem with this amendment, para 7(a) of the FC-4 Form(which has to be submitted online), too, accepts the entry only if the account is in the SBI, New Delhi Main Branch, 11, Sansad Marg, New Delhi -11001 which was, vide notification no. 3479(E), dated 7th October, 2020, prescribed as the bank in which the FCR account is to be opened.
The petitioners submit that this has resulted in a peculiar situation in which, though 31st March, 2020 would be the relevant date for filing of the return for the year 2019-2020, the requirement of the account under the FCRA/FCR Rules being in the SBI, New Delhi was introduced only in September, 2020 and the bank was notified only on 7th October, 2020. Prior thereto, the petition asserts that there was no requirement of the FCR account being in SBI.
The petitioners’ accounts wherein foreign contributions were received were not in the SBI, previously. As a result, the petitioners submit that it has become impossible for them to submit
the return under FC-4 Form for the year 2019-2020.
JUDGEMENT ::
The citizen cannot be penalised for a discrepancy in the form prescribed by the respondent which has resulted in the form being unable to be submitted even in the case of a law abiding citizen.
In view thereof, till the next date of hearing, the respondent is restrained from taking any coercive action against the petitioner for failure to file the requisite return under the FC-4 Form before 30th June, 2021.
In case the respondent comes up with a solution to the impasse, it is at liberty to move the court by way of an appropriate application so that a quietus can be can be achieved to the dispute.
Oliver Rayi
You may also contact Aditya Shrivastava of CSO Support Cell, who is coordinating efforts in helping organisations facing similar issues.
His email id is aditya.nlu@gmail.com .
why Trust is being asked to file Form FC4, which requires updation of SBI Bank, when such amendment only took place during FY 2020-21. This is important not only from factual point of view, but because we’re being levied penalties for late filing of FY 2019-20 return. Minimum being Rs 1 lakh and 5% of total FC rec’d, whichever is higher.
This raises the question, that if the amendment of opening SBI A/c has taken place after FY, why Govt is penalising NGOs for FY 2019-20, when SBI A/c was not even required. our querry too.
Who is petioner and what’s his or her contact details.
Vikas Bhardwaj
Daang Vikas Sansthan KARAULI
N THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 6031/2021 & CM APPL. 19077/2021, CM APPL. 19078/2021
ARBOR CHARITABLE FOUNDATION & ORS…. Petitioners
Through Ms. Srishti Agnihotri, Adv. for
petitioner nos. 1 and 2
Mr. Abishek Jebaraj and Ms.
Nupur Raut, Advs. for R-3
versus
UNION OF INDIA ….. Respondent
This is an important hearing, what the petitioner is saying why he is being asked to file Form FC4, which requires updation of SBI Bank, when such amendment only took place during FY 2020-21. This is important not only from factual point of view, but because many NGOs have been levied penalties for late filing of FY 2019-20 return. Minimum being Rs 1 lakh and 5% of total FC rec’d, whichever is higher.
This raises the question, that if the amendment of opening SBI A/c has taken place after FY, why Govt is penalising NGOs for FY 2019-20, when SBI A/c was not even required. A very valid question.
The court has till the next date of hearing, the respondent is restrained from taking any coercive action against the petitioner for failure to file the requisite return under the FC-4 Form before 30th June, 2021.
In case the respondent comes up with a solution to the impasse, it is at liberty to move the court by way of an appropriate application so that a quietus can be can be achieved to the dispute.
Oliver Rayi