A single-judge bench of Delhi high court has, today (27 May 2015), allowed the NGO Greenpeace India to use two of its bank accounts for the purpose of receiving and also utilising fresh domestic donations for its day-to-day functioning. This order has been issued by Justice Rajiv Shakdher of Delhi high court and this order is confined to the receipt of the domestic donations only. It is pertinent to point out that on 9 April 2015, seven accounts of Greenpeace were frozen by the Ministry of Home Affairs, Government of India, for alleged violation of the rules made under the Foreign Contribution Regulations Act (FCRA). Moreover, the Government of India had also cancelled registration of Greenpeace under FCRA on grounds of alleged violation of the rules by opening 5 accounts to use foreign donations without informing the concerned authorities. By suspending Greenpeace India’s license for six months and barring it from receiving foreign funds, the Government had also issued a show cause notice to the NGO asking why it should not be shut down permanently.
Greenpeace India had filed a writ petition [W.P.(C) 4887/2015 – Greenpeace India Society v. Union of India & Ors.] in Delhi high court against the cancellation of its registration, pleading that it was facing an imminent shut-down. It had also pointed out that it had only a month to survive if the freeze on its accounts continued. The NGO further told the court that due to freeze on its domestic accounts, it had lost donations to the extent of Rs 1.25 crore during the month of May 2015 itself which were made by its Indian donors. On the other hand, the Ministry of Home Affairs told the court that the NGO had violated FCRA provisions by merging its foreign donations with the domestic contributions.
The high court told the Government that it cannot choke the NGO of its funds, allowing the NGO to use two of its accounts for the domestic donations. Further, the bench of Justice Rajiv Shakdher also allowed the NGO to liquidate its fixed deposits, saying that the funds obtained through liquidation of its FDs and the funds obtained through fresh donations may be used for the aims and objectives of the NGO in accordance with law. The high court also asked the concerned banks to explain why its order of January 2015 was violated as per which the NGO had earlier been allowed to use the accounts.
