SC backs Madras HC decision of restoring FCRA Renewal

UNION OF INDIA Versus M/S SHARMA CENTRE FOR HERITAGE EDUCATION, SLP(C)No. 26284-26285/2025[1]

We refer to Madras HC case that we reported only a few days back (https://blog.srr-foundation.org/?p=4788), where Justice N. Anand Venkatesh had decided in favour of appellant NGOs, whose FCRA registration was not renewed by FCRA Dept. HC had quashed the refusal letters of the Dept, and asked the FCRA Dept. to issue renewals.

FCRA Dept filed a Special Leave Petition in the SC, requesting to quash the HC Order. Matter was heard by Bench of Justices Vikram Nath & Sandeep Mehta. In a sharp comment to Additional Solicitor General representing Dept, Justice Nathasked

Have they misappropriated? is there any abuse of these funds received by them? There is no such finding at all. If they are doing some social service for the society, what is your problem? You monitor, keep a check, let them file their accounts annually – that’s all. Don’t complicate things, don’t further harass them. Comply with the High Court Order.

Effectively with this decision of SC, the two NPOs which had gone to the court for relief have been granted the relief. It is fervently hoped that more NPOs will pick up the baton and go to the courts for relief and not wait endlessly for FCRA Dept’s mercy.

Dept’s strict attitude while considering NPOs applications, can be seen from the unreasonably high rejection rate, that MHA has published in its Annual Report for FY 2023-24.

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[1]https://www.livelaw.in/top-stories/supreme-court-rejects-union-challenge-to-high-court-order-for-renewal-of-ngo-fcra-registration-304484