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Mumbai: HC allows advocacy NGO to use domestic bank a/cs

Updated on: 31 January,2017 07:15 AM IST  | 
Vinay Dalvi |

The central government had suspended Lawyers Collective's FCRA licence, which was called an 'act of vindictiveness'

Mumbai: HC allows advocacy NGO to use domestic bank a/cs

In a major relief to Lawyers Collective, an advocacy NGO founded by activist lawyers Indira Jaising and Anand Grover, the Bombay High Court yesterday allowed it to operate its domestic bank accounts. The Centre had suspended the foreign-funded NGO's Foreign Contribution (Regulation) Act (FCRA), 2010, licence, which the latter had called "an act of vindictiveness".


Fight for rights
The NGO had claimed that the Centre had acted against it as its clientele included IPS officer Sanjiv Bhatt, Yakub Memon, Teesta Setalvad and Priya Pillai of Greenpeace.


It had approached the HC through senior counsel Aspi Chinoy, claiming in its petition filed before justice Mahesh Sonak, that there was no case made out that merited such a drastic order, which would bring to a standstill all its activities. Such an order would have a chilling effect on its fundamental as well as other rights, the petition added.


Lawyers Collective had asked for interim relief to operate its HSBC accounts in Delhi and Mumbai. It had challenged sections 15 (management of foreign contribution of person whose certificate has been cancelled) and 22 (disposal of assets created out of foreign contribution) of FCRA.

The arguments
Additional solicitor general Anil Singh, representing the home ministry, had then claimed that there were serious violations and the money the NGO had obtained from foreign countries was used for objectives not listed in its agenda. Singh had added that it had been spent in Hungary and Malaysia. He had said section 22 stood as after cancellation of an NGO's registration, money or assets obtained from foreign funds had to be frozen.

After hearing both sides, justice Sonak, in an 11-page order, allowed the NGO to operate its domestic FCRA accounts but asked it to file a quarterly report before it. The judge also refused to grant any stay on the order passed to the Union government, which wanted to challenge it further.

2015
The year Centre suspended Lawyers' Collective's FCRA registration

10,000
Approximate number of NGOs whose FCRA licence was cancelled the same year

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