HC quashes Centre's suspension order against NGO

The Delhi High Court today quashed the Centre's order to suspend an NGO for alleged illegal transfer of foreign funds to other organisations to be used for organising protests against government policies.
Setting aside the April 30 order passed by the Ministry of Home Affairs, Foreigners Division (FCRA Wing), against Indian Social Action Forum (INSAF) suspending its permanent registration under Foreign Contribution (Regulation) Act (FCRA), Justice V K Jain said government had taken the step without issuing a show cause notice to the NGO and also failed to cite any reason for suspension of its certificate.
The central government had neither issued any notice of hearing/show-cause notice...Therefore, there was no occasion to suspend the certificate of the petitioner in terms of sub-section (1) of Section 13 of the Act.

"The respondents (the central ministry) wrote to the petitioner(NGO) seeking certain information for the first time on 2 May, 2013, which is after the registration of the society had already been suspended. The suspension, therefore, was contrary to the scheme of the Act which envisaged suspension only when the issue of cancellation is already pending consideration of the government. For this reason, the order is liable to be quashed," the court said allowing the NGO's plea.
The court also noted the failure of the government to record the reasons which necessitated suspension of the certificate under FCRA and said the provision of the Act was "misconceived."

"...If the government decides to suspend the certificate, it can be done only for reasons to be recorded and such reasons, in my view, need to be incorporated in the suspension order itself so that the organisation is in a position to know what were the reasons which impelled the government to suspend its registration.