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Delhi HC allows release of Funds for Centre for Policy Research amid FCRA license suspension

By Ruchika Kumar Published 17 Oct 2023

New Delhi, October 17, 2023: The Delhi High Court has allowed the Centre for Policy Research (CPR), a leading think-tank, to access 25% of its unutilized funds in fixed deposits. The decision comes after CPR filed a plea against the suspension of its Foreign Contribution Regulation Act (FCRA) license by the Central government earlier this year.

CPR's Senior Advocate Arvind Datar emphasized the organization's significant contributions, noting that it operates under the scrutiny of the Comptroller and Auditor General (CAG) and the Home Ministry. He stressed that past audits had found no wrongdoing, emphasizing the gravity of the situation where employees hadn't been paid for six months.

Despite CPR's plea, the Central government contended that the unutilized funds referred to unspent amounts, asserting that fixed deposits fall outside its jurisdiction.

The timeline of events revealed that CPR received a show cause notice on August 1 and submitted an application under Rule 14 during the suspension of its FCRA license. However, the government assured that it is diligently examining the matter.

The Union Ministry of Home Affairs suspended CPR's FCRA license following surveys conducted by the Income Tax Department, leading to a 180-day suspension during which the organization cannot receive foreign funding without prior approval.

The case highlights the complex landscape surrounding regulatory compliance and foreign funding for organizations, shedding light on the challenges faced by entities like CPR. As the legal proceedings progress, the future operations and financial stability of CPR remain subject to further developments in the ongoing case.