Noel Harper & Ors Vs Union of India & Anr(Supreme Court)
Date-8th April,2022

Sub-Whether amendment made to Section 7, 12(1A),12A and 17(1) of Foreign Contribution(Regulation) Act, 2010 are manifestly arbitrary, unreasonable and imprinting upon the fundamental rights guaranteed to the petitioners under Articles 14, 19 and 21 of the Constitution.

The Supreme Court three judges bench in this case was called upon to consider various petition under Article 32 of the Constitution of India where the petitioners mainly Institutions who were registered under the Foreign Contribution (Regulation) Act challenged the various amendments to the sections as above on account of bring violative of the fundamental rights. The said amendments, put restriction on transfer of foreign contribution received to any other person, made it mandatory to receive funds only with a designated branch of State Bank of India, New Delhi, mandatory quoting of Aadhaar Number of all its office bearers.

The Court having looked into the object of introduction of the FCRA Act and the various difficulties that had arisen particularly with foreign funds being routed through FCRA registered organisation for anti-soverign purposes observed that Philosophically, foreign contribution (donation) is akin to gratifying intoxicant replete with medicinal properties and may work like a nectar. However, it serves as a medicine so long as it is consumed (utilised) moderately and discreetly, for serving the larger cause of humanity. Otherwise, this artifice has the capability of inflicting pain, suffering and turmoil as being caused by the toxic substance (potent tool) — across the nation. In that, free and uncontrolled flow of foreign contribution has the potentials of impacting the sovereignty and integrity of the nation, its public order and also working against the interests of the general public.

Finally, the court only allowed the Writ in a very limited manner to allow the Passport to be accepted as a tool of identification of office bearers for Indian as well as foreign nationals in view of the judgement in K.S. Puttaswamy (Retired) & Anr. (AADHAAR) vs. Union of India & Anr. case where the Aadhaar was held to be not mandatory and all other grounds of challenge were dismissed in a detailed 132 page order.

The order makes an interesting reading.

Ramesh Patodia
08-04-2022