Organisations Engaged In Converting People Of One Religious Faith To Another Shall Be Denied FCRA Registration: Madras High Court
The Madras High Court was considering an appeal filed by a Trust under Section 31(2) of the Foreign Contribution (Regulation) Act seeking a Certificate of Registration.
While dismissing an appeal of a Trust claiming to subscribe to Zen Buddhist philosophy, the Madras High Court has held that religious organisations, whose activities would not affect the nation’s secular fabric, are entitled to obtain FCRA (Foreign Contribution (Regulation) Act) registration, but organisations engaged in converting people of one religious faith to another are to be denied such registration.
The High Court was considering an appeal filed under Section 31(2) of the Foreign Contribution (Regulation) Act, 2010 read with Order XLI Rule 1 of the Civil Procedure Code, 1908 read with the Madras High Court (Appellate Side Rules), 1965, to direct that the Respondent grants a Certificate of Registration under the FCRA, 2010 to the Appellant Trust.
The Bench comprising Justice G.R. Swaminathan and Justice M.D. Sumathi held, “The authority must however correctly classify the applicants. Persons and organisations engaged in upholding the civilisational heritage of India have to be classified as educational or cultural. If the programs of the applicant pertain to worship and rituals, they will fall under the religious category. Religious organisations, whose activities would not affect the nation’s secular fabric and social amity, are entitled to obtain FCRA registration. But organisations engaged in converting people of one religious faith to another shall be denied FCRA registration.”
Advocate G.Baskar represented the Petitioner while Central Government Senior Standing Counsel G.Thalaimutharasu represented the Respondent.
Factual Background
The appellant, a trust founded in 2021 and registered under Section 12AB and 80G of the Income Tax Act, 1961, sought a certificate of registration under the provisions of the Foreign Contribution (Regulation) Act, 2010. The appellant’s application was rejected. The civil miscellaneous appeal was filed before the High Court assailing the same.
Reasoning
Dealing with the Registry’s initial doubt if the appeal had to be heard by a Single Judge Bench or by a Division Bench, the High Court explained, “FCRA is a special statute. It would, therefore, be in the fitness of things and in consonance with the overall statutory scheme that an appeal under Section 31(2) of the FCRA, 2010 is also heard by a Division Bench. It is relevant to note that in the Chartered High Court of Calcutta also such appeals are listed only before the Division Bench,”, it added.
The Bench noted that the appellant trust claimed to subscribe to Zen Buddhist philosophy. The Bench also noticed that every Buddhist school will come under the broad umbrella of Buddhism and Zen can be no exception. “Since the appellant’s application did not correctly identify its nature as religious, the application was rightly negatived”, it held, while also adding, “Though the applicant is engaged in religious programs, they wrongly projected themselves as non-religious. That is why, the respondent authority had to say “Illa Samy” (No Sir) to Rev.Fr.Ama Samy (which name literally translates as “Yes”).
The Bench further explained that Section 12 of the FCRA bars only an unregistered religious organisation from accepting foreign contribution. The Bench noted that an organisation having a definite religious program is entitled to apply for a certificate of registration from the central government under Sections 11 and 12 of the Act.
Differentiating between a religious organisation and a cultural or educational entity, the Bench stated, “Section 12(4)(a)(ii) specifically refers to conversion from one religious faith to another. This provision applies to all religious organisations. A fundamentalist Hindu Organisation engaged in Ghar Wapsi cannot be registered under FCRA. The statutory regime which was put in place during UPA rule (2010) is intended to subserve secular objects.”
The Bench stated that an application seeking FCRA registration should correctly disclose the nature of the applicant as failure to do so would result in rejection of the application. “Even if all the details are in order, the authority is still at liberty to negative the request. The decision of the authority will not be judged on a high threshold but in the light of the parameters mentioned in para 11. This is because there is no right as such to receive foreign contribution. It can at best be a privilege”, it added.
Thus, observing that the organisations engaged in converting people of one religious faith to another would be denied FCRA registration, the Bench dismissed the appeal.
Cause Title: Kanzeon Public Charitable Trust v. Union of India (Case No.: CMA(MD) No. 1057 of 2026)