Govt to HC: CHRI diverted funds to benefit Bangla, Pak, Afghanistan, Pg10.

Key Highlights:

• The Ministry of Home Affairs (MHA) informed the Delhi High Court that the FCRA registration of Commonwealth Human Rights Initiative (CHRI) was cancelled in September 2024.
• The MHA stated that CHRI diverted foreign funds to benefit countries like Bangladesh, Pakistan, and Afghanistan, posing a threat to national security.
• This was the second time CHRI's FCRA registration was cancelled; the first cancellation in April 2022 was set aside by the Delhi High Court in July 2024.
• The MHA alleged that CHRI used foreign contributions for activities outside India, deposited consultation fees of approximately Rs 32 lakh into its FCRA account, and provided incomplete/incorrect information in statutory form FC-4.

Detailed Insights:

• CHRI's FCRA registration was initially suspended in June 2021 for six months due to alleged violations, and its challenge to the suspension was dismissed in February 2022.
• The MHA argued that foreign contributions are meant for the welfare of society in India, and their utilization in foreign countries constitutes a diversion of funds.
• The Income-Tax Department issued a notice to CHRI in July 2024 under Section 12AB(4)(a) of The Income-Tax Act, 1961, but the High Court set aside the notice in August 2024.
• CHRI contended that the consultation fees received from organizations like DFID of the UK and Transparency International Sri Lanka (TI-SL) retained the character of foreign contributions.
• The alleged violations by CHRI include procedural infirmities in filings and disclosures, such as providing incomplete details of activities/projects in form FC-4 for FY 2018-19.
• CHRI was founded in 1987 in the UK and brought to India in 1993 by jurist Soli Sorabjee.

Key Concepts Involved:

• FCRA (Foreign Contribution (Regulation) Act, 2010): An act to regulate the acceptance and utilization of foreign contributions by individuals, associations, and organizations.
• Foreign Contribution: The donation, delivery, or transfer made by any foreign source of any article, currency, or security.
• National Security: The security and defense of a nation state, including its citizens, economy, and institutions, which is regarded as a government's primary responsibility.