Madras HC upheld FCRA rejection of a trust that concealed its religious character by labelling Zen activities as non-religious.
FCRA Rejection for Misclassifying Zen Religious Activities
The Madras High Court upheld the rejection of FCRA registration for a trust promoting Zen practices, holding that it deliberately misclassified religious activities as secular to circumvent disclosure requirements under the Foreign Contribution (Regulation) Act, 2010.
The court observed that the trust’s core activities—meditation, spiritual training, and community rituals—constituted religious propagation. Despite claiming to be a cultural organisation, the documentation and conduct revealed religious intent. The ruling reaffirms that transparency in the nature of activities is critical for FCRA eligibility.
Organisations applying for FCRA registration must accurately disclose their objectives. While religious entities are not barred, misrepresentation or suppression of religious character will lead to rejection. Legal practitioners must advise clients on precise classification and documentation to avoid regulatory scrutiny.
