Madras High Court upholds denial of FCRA registration to a trust that misdeclared its religious activities, affirming disclosure requirements for religious entities.
Madras HC Upholds FCRA Rejection for Misclassified Zen Trust
The Madras High Court upheld the Central Government's rejection of Foreign Contribution Regulation Act (FCRA) registration to a trust engaged in Zen religious practices, which had failed to disclose its religious nature in the application. The trust classified itself purely as a cultural and spiritual organisation.
The court ruled that deliberate non-disclosure of religious character constitutes misrepresentation, warranting rejection under Section 12(1)(c) FCRA. While recognising that religious organisations may validly receive foreign contributions, the judgment stresses truthful and complete disclosure in FCRA applications.
This decision reinforces the necessity of transparency in NGO registrations. Advocates must ensure clients accurately represent all aspects of organisational activities, particularly where religious or political affiliations exist, to avoid FCRA non-compliance and potential funding bans.
Citations
- Section 12(1)(c), FCRA, 2010
