Appeal Challenging Dismissal Of FCRA Renewal Application Not Maintainable; Revision Has To Be Filed: Karnataka HC
The Karnataka High Court held that in order to challenge the dismissal of an FCRA renewal application, a Revision needs to be filed instead of an Appeal under Section 31(2) of the Foreign Contribution (Regulation) Act.
The Court dismissed an appeal filed by Action for Community Organisation, Rehabilitation, and Development (ACCORD/Appellant), a society registered under the Karnataka Societies Registration Act, 1960, challenging the rejection of its application for renewal of its Foreign Contribution Regulation Act, 2010 (FCRA) certificate. The Bench held that the Appeal under Section 31(2) of the FCRA was not maintainable and instead directed the Appellant to file a Revision under Section 32 of the FCRA.
The Appellant had filed the Appeal seeking to set aside the Order issued by the Ministry of Home Affairs, Foreigners Division, rejecting its renewal application under Section 16(1) read with Section 12(4)(a)(vi) and Section 12(4)(f)(iii) of the FCRA.
A Single Bench of Justice K. Natarajan stated, “However, in respect of the limitation, though the appeal is filed within limitation and chosen the wrong Forum, the limitation can be exempted under Section 14 of the Limitation Act. Therefore, I am of the view that the contention taken by the appellant shall be kept open to be urged before appropriate Forum.”
Advocate Subramanya S Upasana appeared for the Appellant, while Deputy Solicitor General of India Shanthi Bhushan H. represented the Respondent.
The renewal application was rejected through an e-mail communication from the Ministry of Home Affairs, prompting the Appellant to file the present appeal under Section 31(2) of the FCRA.
The Respondent raised a preliminary objection regarding the maintainability of the Appeal, arguing that the remedy available to the Appellant was to file a revision under Section 32 of the FCRA. The Respondent further contended that the rejection Order was not appealable under Section 31(2) as it pertained to renewal and not to adjudication of confiscation under Sections 28 and 29 of the FCRA.
The Bench referred to the decision in Gupta Technical Educational Society v. Union of India (2024) wherein the Delhi High Court held that such an order cannot be appealable and a revision has to be filed.
Consequently, agreeing with the decision by the Delhi High Court, the Bench held, “In respectful agreement with the view taken by the High Court of Delhi, the same is applicable to the case on hand, where the appeal is not maintainable under Section 31(2) of the FCRA, 2010 and on the other hand, the revision lies under Section 32 of the FCRA, 2010.”
Accordingly, the High Court dismissed the Appeal as not maintainable.
Cause Title: Action For Community Organisation, Rehabilitation and Development v. Union Of India (Neutral Citation: 2024:KHC:49744)