NOEL HARPER & ORS. versus UNION OF INDIA & ANR.

NOEL HARPER & ORS. versus UNION OF INDIA & ANR.

The Court upheld ss.7, 12(1A), 12A and 17(1) of the FCRA as amended by the 2020 Act as intra vires the Constitution and the Principal Act: (a) amended s.7 validly prohibits transfers of foreign contribution to ensure the recipient utilises funds itself for permitted purposes and to prevent layered diversion and excessive administrative leakage; (b) ss.12(1A) and 17(1) validly require receipt of foreign contribution into a designated FCRA account at a specified SBI branch to enable real-time, single-point monitoring while permitting utilisation accounts elsewhere; (c) s.12A is necessary for identification and accountability and is to be read down to allow Indian passports as substantial...

Parties
Petitioners: Noel Harper & Ors.; Respondents: Union of India & Anr.; Respondent: State Bank of India (Respondent No.3)
Jurisdiction
India
Judgment Date
08 April 2022
Procedural Posture
Writ Petitions Under Article 32 Challenging Constitutional Validity of Amendments to the Foreign Contribution (regulation) Act, 2010 / Final Judgment (disposed) April 08, 2022
Outcome
Writ Petitions disposed of; constitutional challenges to amended ss.7, 12(1A), 12A and 17(1) rejected
Legal Topics
Foreign Contribution (regulation) Act 2010, Foreign Contribution (regulation) Amendment Act 2020, Constitutional Validity of Ss.7, 12(1 A), 12 a and 17(1), Fundamental Rights Articles 14, 19 and 21, FCRA Account Designation and Monitoring, Aadhaar and Identification Requirement
Constitutional Law Administrative Law Legislation Banking/financial Regulation Foreign Contribution (regulation) Act 2010 Foreign Contribution (regulation) Amendment Act 2020 Constitutional Validity of Ss.7, 12(1 A), 12 a and 17(1) Fundamental Rights Articles 14, 19 and 21 +2 more

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Parties

Noel Harper & Ors.

Petitioners

Union of India & Anr.

Respondents

State Bank of India (Respondent No.3)

Respondent

Procedural Posture

Writ Petitions Under Article 32 Challenging Constitutional Validity of Amendments to the Foreign Contribution (regulation) Act, 2010 / Final Judgment (disposed) April 08, 2022

Legal Issues

  1. 1 Whether ss.7, 12(1A), 12A and 17(1) of the FCRA as amended by the 2020 Act are constitutionally valid under Articles 14, 19 and 21 of the Constitution
  2. 2 Whether amended s.7 unjustifiably and manifestly arbitrarily prohibits transfer of foreign contribution and unduly restricts utilisation by recipients
  3. 3 Whether ss.12(1A) and 17(1) are arbitrary in mandating receipt of foreign contribution only in an FCRA account in a specified branch of State Bank of India (NDMB) and related monitoring obligations

Ratio Decidendi

The Court upheld ss.7, 12(1A), 12A and 17(1) of the FCRA as amended by the 2020 Act as intra vires the Constitution and the Principal Act: (a) amended s.7 validly prohibits transfers of foreign contribution to ensure the recipient utilises funds itself for permitted purposes and to prevent layered diversion and excessive administrative leakage; (b) ss.12(1A) and 17(1) validly require receipt of foreign contribution into a designated FCRA account at a specified SBI branch to enable real-time, single-point monitoring while permitting utilisation accounts elsewhere; (c) s.12A is necessary for identification and accountability and is to be read down to allow Indian passports as substantial...

Court Disposition

Writ Petitions disposed of; constitutional challenges to amended ss.7, 12(1A), 12A and 17(1) rejected

Orders

  • Writ Petition (Civil) Nos. 566 and 751 of 2021 disposed of
  • Writ Petition (Civil) No. 634 of 2021 disposed of