NGOs indulging in means of dissent can't be denied foreign funds: SC

The Supreme Court has declared that an organisation indulging in legitimate means of dissent like bandh, hartal etc in support of a public cause cannot be deprived of foreign contribution.

The top court held that it is only those organisations which had a connection with active politics or took part in party politics can be covered under the Foreign Contribution (Regulation) Rules, 2011 to deny them foreign funds.

“Any organisation which supports the cause of a group of citizens agitating for their rights without a political goal or objective cannot be penalised by being declared as an organisation of a political nature,” a bench of Justices L Nageswara Rao and Deepak Gupta said.

The top court agreed to a contention made by senior advocate Sanjay Parikh, representing an NGO, Indian Social Action Forum (INSAF) that the term 'political interests” used in the rules was vague and susceptible to misuse. The petitioner-organisation challenged the Delhi High Court's judgement that had dismissed its plea against the provisions.

According to the guidelines prescribed in Rule 3 (VI), any organisation which habitually engaged itself in or employed common methods of political action like 'bandh' or 'hartal', 'rasta roko', 'rail roko' or 'jail bharo' in support of public causes can also be declared as an organisation of political nature.

The court, however, said those organisations which were working for the social and economic welfare of the society cannot be brought within the purview of the Foreign Contribution (Regulation) Act, 2010 or the rules by enlarging the scope of the term ‘political interests’.

Those NGOs or voluntary organisations which had absolutely no connection with either party politics or active politics cannot be denied access to foreign contributions, the bench said.