FCRA cancellation: Delhi HC refuses to interfere with order permitting CHRI to withdraw Rs 20 lakh

NEW DELHI: The Delhi High Court on Thursday refused to interfere with an order allowing civil society group Commonwealth Human Rights Initiative (CHRI), whose FCRA registration was cancelled in 2025, to withdraw Rs 20 lakh from its "reserve fund" for meeting its operational expenses.

A bench of Chief Justice D K Upadhyaya and Justice Tejas Karia rejected the central government's appeal against a single-judge bench's May 19 order, remarking that cancellation of an organisation's FCRA licence does not mean it ceases to function.

Cancellation of FCRA registration merely means that the organisation cannot receive foreign funds, the bench stated, as it asked the Centre to approach the single-judge's bench for an application seeking revocation of the order instead.

"Order was passed way back on May 19, 2026. Seek vacation of the order," said the court while disposing of Centre's appeal with liberty to it to move an appropriate application.

The court requested the single judge bench to expedite the hearing in the matter.

Additional Solicitor General Chetan Sharma contended that the single judge's order was passed on a misreading of the Foreign Contribution (Regulation) Act (FCRA).

He also argued that the interim order was passed without granting the authorities an opportunity to file a response to CHRI's plea seeking interim relief.

"We at this juncture need not go into the merits of the submissions for the reason that the order of the single judge is an interim order, vacation of which can be sought by the appellant," the division bench opined.

On May 19, the single-judge bench had permitted CHRI to withdraw Rs 20 lakh from its "reserve funds" maintained with the Bank of India.

The single judge said CHRI shall be entitled to disburse the amount towards various recurring expenses for its operational arrangements, and also get it authenticated by a CA.

Before the single judge, CHRI has challenged the cancellation of its FCRA registration.

In its plea, the organisation said the Centre cancelled its certificate of registration on September 12, 2024, without providing it an opportunity to be heard, violating principles of natural justice, as well as its statutory and fundamental rights.

The CHRI’s FCRA registration was suspended in June 2021 by the Centre.

The petition stated that the cancellation order was unreasonable, unreasoned, vague, without any application of mind, and based on wholly incorrect facts. It also contended that the allegations of FCRA violation by CHRI were misconceived.

The plea further claimed that the order was based on certain reports of the central security agency and other inputs available with the ministry that were not in its knowledge.

The plea has alleged that the authorities failed to establish that CHRI was "guilty of diversion or misutilisation of its funds", asserting that the foreign contribution was utilised for the purpose it was granted and had not been diverted or misutilised.