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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Constitutional LawSupreme Court of India

Noel Harper & Ors. vs Union of India & Anr.

Writ Petition (Civil) · 2022 INSC 292Decided 8 Apr 2022
Writ Petition (Civil) No. 566 of 2021
A.M. Khanwilkar · Dinesh Maheshwari · C.T. Ravikumar · Abhay S. Oka instead of Justice Dinesh Maheshwari

Background

Several charitable trusts and NGOs (including Care and Share Charitable Trust and National Worker Welfare Trust, which run child-welfare and migrant-worker programmes and depend on foreign donations) challenged the 2020 amendments to the Foreign Contribution (Regulation) Act, 2010. The amended law required every FCRA-registered organisation to open a designated "FCRA account" only at a specified branch of the State Bank of India in New Delhi as the sole channel for receiving foreign funds, barred registered persons from transferring foreign contributions to any other person/sub-grantee, and required Aadhaar numbers of all office-bearers/key functionaries as identification for registration or renewal. The petitioners argued these changes were manifestly arbitrary and violated their fundamental rights under Articles 14, 19 and 21 by making compliance impractical, especially for organisations far from Delhi.

Decision Breakdown

The Supreme Court upheld the constitutional validity of Sections 7, 12(1A), 12A and 17(1) of the amended Act in their entirety. It held that receiving foreign contribution is not a fundamental right but a privilege/permission granted by the State, which can be strictly regulated in the interests of the sovereignty, integrity and security of the country; Parliament had a legitimate basis for the changes, noting that over 19,000 registrations had been cancelled for violations and that foreign inflows had nearly doubled between 2010-2019. Requiring a single designated FCRA bank account was found to be only a "one-time exercise" and not unduly burdensome, since organisations remain free to operate multiple accounts elsewhere to actually utilise the funds once received, and since the designated bank confirmed accounts could be opened and operated online without physical presence. On identification, the Court "read down" Section 12A so that Indian nationals among an organisation's key functionaries may furnish their Indian passport instead of mandatorily an Aadhaar number, treating passport submission as valid compliance.

Lesson Learnt

The right to receive foreign donations is a statutory privilege, not a fundamental right, so Parliament can impose strict, centralised regulatory conditions on NGOs handling foreign funds (like a single designated bank account and identity verification of key office-bearers) in the interest of national security and accountability, so long as the regulation stops short of an outright prohibition on associating or doing charitable work.

Noel Harper & Ors. vs Union of India & Anr. – Legal Case Shots | LegalAware