The Madras High Court upheld the cancellation of FCRA registration of a Zen trust that misrepresented its religious nature, affirming that transparency in application is mandatory for foreign funding eligibility.
Madras HC Upholds FCRA Registration Denial for Zen Trust
The Madras High Court upheld the rejection of Foreign Contribution (Regulation) Act (FCRA), 2010 registration for a Zen religious trust that failed to disclose its religious character in its application. The authority had rejected the registration on grounds of misrepresentation and concealment of activities with religious objectives.
The Court observed that while religious organisations are not barred from seeking FCRA registration, they must fully and accurately disclose the nature of their activities. Non-disclosure of religious components in the application amounted to suppression of material facts, thereby undermining the transparency required under Section 12(1) of the FCRA, 2010.
The ruling reinforces regulatory scrutiny over accuracy in FCRA applications. Organisations must ensure full alignment between stated objectives and actual activities. Legal practitioners should advise clients to declare religious affiliations explicitly, if applicable, to avoid future non-compliance.
Citations
- Foreign Contribution (Regulation) Act, 2010
