Case Note & Summary
The petitioner, Centre for Wildlife Studies, a trust engaged in wildlife conservation and research, registered under the Foreign Contribution (Regulation) Act, 2010, challenged orders of suspension and eventual cancellation of its registration by the Union of India. The trust was registered in 1990 and had been receiving foreign contributions for its activities. On 05-03-2021, the registration was suspended for 180 days, which was later extended. The petitioner alleged that a communication relating to the suspension was never received and sent a reply on 11-04-2021. Subsequently, on 03-12-2021, a show cause notice was issued alleging violations such as non-intimation of utilization accounts, improper transfer and receipt of foreign contributions, and misuse of funds. The petitioner submitted a detailed reply refuting the allegations. On 04-09-2023, the respondent passed an order cancelling the registration, which the petitioner claimed was cryptic and passed without considering its reply or providing a personal hearing. The petitioner contended that personal hearing was mandatory under Section 14(2) of the Act, while the respondents argued that only reasonable opportunity of being heard was required, which was satisfied by issuing the show cause notice. The court examined Section 14 of the Act, noting that sub-section (2) mandates reasonable opportunity of being heard and sub-section (3) imposes a three-year bar on re-registration, thereby having serious consequences. The court noted that the impugned cancellation order was not so cryptic as to warrant annulment on that ground alone, but the issue of personal hearing remained to be considered. The judgment text provided is incomplete, and the final decision is not available.
Headnote
A) Foreign Contribution Regulation - Cancellation of Registration - Opportunity of Being Heard - Foreign Contribution (Regulation) Act, 2010, Section 14(2) - The petitioner challenged cancellation of its registration contending that no personal hearing was afforded. The court noted that Section 14(2) requires reasonable opportunity of being heard, but the respondents argued that personal hearing is not mandatory. (Paras 6-9)
B) Foreign Contribution Regulation - Consequences of Cancellation - Penal Nature - Foreign Contribution (Regulation) Act, 2010, Section 14(3) - The court observed that cancellation of certificate leads to a disability of three years from re-registration, thus carrying serious civil and economic consequences. (Para 9)
Issue of Consideration
Whether the order of cancellation of registration under Section 14 of the Foreign Contribution (Regulation) Act, 2010 violated the requirement of reasonable opportunity of being heard under Section 14(2), and whether personal hearing is mandatory
Final Decision
Decision not clearly stated
Law Points
- Legal points not extracted
- Cancellation of registration under FCRA requires reasonable opportunity of being heard
- Suspension and cancellation have serious civil and economic consequences
- Section 14(3) imposes a 3-year disability
- The requirement of being heard does not necessarily mean personal hearing
Case Details
2026 LawText (KAR) (05) 11
Writ Petition No.27301 of 2023 (GM-RES)
Udaya Holla, Senior Advocate; V. Vinayak Kulkarni, Advocate; Madhukar Deshpande, Central Government Counsel; B.N. Jagadeesh, Additional State Public Prosecutor
Centre for Wildlife Studies (R), represented by its Chief Functionary, Dr. Ullas Karanth
Union of India, Ministry of Home Affairs; Ministry of Home Affairs, Foreigners Division (FCRA Wing/FCRA-MU); Home Department, Government of Karnataka; Deputy Commissioner, Bengaluru Urban District
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging orders of suspension and cancellation of registration under the Foreign Contribution (Regulation) Act, 2010.
Remedy Sought
The petitioner sought quashing of the suspension order dated 05-03-2021, the extension order dated 10-09-2021, and the cancellation order dated 04-09-2023; and a direction to consider its renewal application.
Filing Reason
The petitioner's registration under the Act was suspended and later cancelled on grounds of alleged violations of the Act, which the petitioner contested as illegal and passed without proper hearing or consideration of its detailed replies.
Previous Decisions
Previous decisions not referenced
Issues
Whether the order of cancellation of registration under Section 14 of the Foreign Contribution (Regulation) Act, 2010 violated the requirement of reasonable opportunity of being heard under Section 14(2).
Whether personal hearing is mandatory before cancelling registration under the Act.
Submissions/Arguments
Petitioner argued that the cancellation order lacked reasons and was passed without personal hearing, which is required under Section 14(2) of the Act.
Respondents contended that reasonable opportunity of being heard only requires issuance of a show cause notice, not personal hearing, and that such notice was duly issued.
Ratio Decidendi
Section 14(2) of the Foreign Contribution (Regulation) Act, 2010 mandates that no cancellation shall be made without giving a reasonable opportunity of being heard. The cancellation of registration carries serious civil and economic consequences due to the three-year disability under Section 14(3). The requirement of being heard may not necessarily include a right to personal hearing, but the court was considering the adequacy of the opportunity provided.
Judgment Excerpts
No order of cancellation of certificate under this section shall be made unless the person concerned has been given a reasonable opportunity of being heard.
Sub-section (3) of Section 14 of the Act is penal as the cancellation of certificate will lead to disability of any person whose certificate is cancelled for a period of three years. Therefore, it has serious civil and economic consequences.
A perusal at the impugned order would not indicate that it is so cryptic that it needs to be annulled. But, the issue is not with re...
Procedural History
The petitioner trust was registered under the Foreign Contribution (Regulation) Act, 2010 on 23-01-1990. On 05-03-2021, the second respondent suspended the registration for six months. On 10-09-2021, the suspension was extended for another 180 days. A show cause notice was issued on 03-12-2021 alleging violations and proposing cancellation. On 04-09-2023, the second respondent passed an order cancelling the registration. The petitioner filed the writ petition challenging the suspension and cancellation orders.
Acts & Sections
- Foreign Contribution (Regulation) Act, 2010: 11, 12, 13, 14
- Constitution of India: 226, 227
