Government need not suspect NGOs only because they receive foreign funds: Madras High Court
The government need not treat non-governmental organisations with suspicion merely because they receive foreign funding, the Madras High Court said on Friday.
“Just because some institutions run with the aid of foreign contribution, it is not necessary to look at the institutions like that of the petitioners with suspicion unless there are materials to show that such foreign contribution is being misused and it is being used against public interest/national interest,” the court said.
Justice Anand Venkatesh said that several persons of Indian origin living abroad donate money to help India, and that alone should not raise concerns.
The court was hearing a petition by two sister organisations, the Sharma Centre for Heritage Education and the Ellen Sharma Memorial Trust, challenging the Ministry of Home Affairs’ decision to deny the renewal of their registration under the Foreign Contribution Regulation Act.
Non-profit organisations that wish to receive funds from abroad need to register themselves under the Foreign Contribution Regulation Act.
The trusts said that they had been working since 1982 to improve children’s education and health and relied heavily on foreign donations for their work that includes setting up schools and health centres in and around Chennai.
The government argued that the organisations had violated Foreign Contribution Regulation Act rules by moving funds among themselves without permission.
However, the court...
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