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11 OCTOBER 2013: The HOME MINISTRY withdrew the fcra suspension in the light of the Delhi High Court judgment and de-froze the bank account.

INSAF gifted delayed justice in FCRA struggle with Home Ministry

Indian Social Action Forum (INSAF), a network of over 700 peoples movements and NGOs has emerged victorious in it's struggle with the Home Ministry which had suspended their Foreign Contributions Regulation Act (FCRA) registration and frozen the bank account on 30th April 2013. The Delhi High Court had quashed this suspension in a judgment on 19th September 2013. Not getting any reply from the Home Ministry, INSAF filed a Contempt of Court petition in the Delhi High Court this week. The Home Ministry advocate refused to accept the petition copy served to him after he read the title.

The contempt petition was listed in the court of Hon'ble Justice Sudershan Kumar Misra, but since he was on leave today it is now listed on November 15th. Finally, today the bank also received the MHA order and the account has been defrozen.

The Home Ministry legal counsel informed the court that they had withdrawn the suspension of the FCRA of INSAF and directed the bank to de-freeze the foreign fund account. In a letter to INSAF, Mr. V. Vumlunmang, Joint Secretary in the Foreigners Division of the Ministry of Home Affairs noted that their order of suspension of FCRA was challenged by INSAF in the Hon'ble Delhi High Court, which had set aside the order.

Under Section 13 of FCRA 2010 it is provided that the FCRA department may suspend the registration of any organisation for a period of 180 days pending cancellation proceedings. It was noticed that the FCRA department was issuing suspension order without providing an opportunity of being heard. Such orders were unfair and causing undue hardship to the NGOs.

Hon'ble Justice V.K.Jain in his judgment in the case Indian Social Action Forum (INSAF) vs. Union of India W.P.(C) 4982/2013 & CM 11248/2013 has held that no order of suspension can be made unless a show cause is issued and the reasons for such suspension are provided in writing. He further explained that the suspension powers provided in the Act are intended to be used primarily when any cancellation proceeding is initiated.

Therefore, any unilateral suspension of FCRA registration will not be legally sustainable. This landmark case should provide great relief to the NGO sector which has been facing arbitrary cancellations and suspensions of registration during the past year.

INSAF and a network of activist groups “JANADHIKAR SANGHARSH SAMITI” will continue it's campaign to strike down Rule 3 of FCRA rules 2011 which prohibits participation of NGOs in democratic and constitutional protests like rasta roko, dharnas, etc. The campaign also focuses on the need for the government to respect the 'rule of law' and treat both the profit and non-profit sectors equally in matters of foreign funds. While the profit sector has been left scot free in this era of globalisation, FERA (foreign exchange regulation act) has been converted into FEMA (management). But, the FCRA for the non-profits has been made more stringent and is policed through the Home Ministry. There is a dire need to ultimately move FCRA away from the Home Ministry and transform it into Foreign Contributions Management Act.

INSAF FCRA ISSUE – All documents, correspondence, media reports at:

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Indian Social Action Forum

INSAF is a national forum of over 700 movements and NGOs in India. Committed to RESIST globalisation COMBAT communalism & DEFEND democracy and strives to join efforts in creating an economically equitable, socially just and ecologically sustainable democratic society. (Account details for FCRA compliance in 'ABOUT US' link above or at

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