Delhi HC upholds FCRA validity
A bench of justices Manmohan and Sangita Dhingra Sehgal dismissed a batch of seven petitions, including one challenging the case lodged by Central Bureau of Investigation against aviation consultant Deepak Talwar’s NGO Advantage India and others, for allegedly misappropriating over Rs 90.72 crore taken through foreign funding route as part of CSR (corporate social responsibility).
The agency has alleged that Talwar and his NGO, in the name of purchasing ambulances and other articles, diverted the funds received from Europe’s leading missile manufacturing company MBDA and Airbus group, violating the FCRA (foreign contribution regulation act).
The HC found nothing amiss in the Centre’s direction to CBI to prosecute the NGO and its subsidiaries after an initial enquiry indicated alleged diversion of funds for personal benefit.
In their petitions, the NGO and other companies had alleged that the government cannot pick and choose, according to its whims and fancies, the investigative agency, i.e., if the investigation should be carried out by the officer authorised by the Central Government or the CBI under Section 43 of FCRA.
But HC disagreed and cited a notification of the government issued in 2011 that laid down the norm for investigation of offences under FCRA.
It added that “this Court is of the opinion that there is no possibility of any ‘pick and choose’ of investigative agency or parallel investigation or re-investigation as from the additional affidavit by Union of India, it is apparent that by virtue of established practice/convention/principle and notification, investigation of offences under FCRA is carried out either by CBI or crime branch officials exclusively depending upon the pecuniary value of alleged violation and not by an officer authorised by the Central Government under Section 23 of FCRA.”
On its part, the CBI told the HC that probe is underway to verify the claimed supply of medicines, stationery and medical units worth more than Rs 72 crores, as to who were allegedly involved in the fabrication of false documents and opening of bank accounts apart from identifying who is the actual beneficiary of the whole transactions.
Talwar’s NGO further questioned why out of 13,000 NGOs whose licences had been cancelled under FCRA, only 32 had been referred to CBI for investigation, but HC said that depends on nature of violations by the NGOs. “At times inquiry report giving prima facie findings leads to subsequent criminal investigation by police or specialised agencies,” it added, pointing out that even under FCRA it is possible that an inspection ordered by Centre may reveal that foreign funds received by an organisation certified by it were used to fund terror activities in the country.
“In such circumstances, no one can say that investigation of FRCA offences as well as IPC and other terror acts cannot be transferred to specialised agencies like CBI ‘midstream’,” it noted.
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References
- ^ Foreign Contribution Regulation Act (timesofindia.indiatimes.com)
- ^ FCRA (timesofindia.indiatimes.com)
- ^ corporate social responsibility (timesofindia.indiatimes.com)
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