The High Court has granted interim relief to two prominent local diocesan organisations by staying an order that cancelled their Foreign Contribution (Regulation) Act (FCRA) registration certificates. The stay was granted in favour of the Diocesan Society of Education and the Diocesan Centre for Social Communications Media in their appeals against the Union of India.
Raising a plea of breach of natural justice, the appellants contended that they were not served with a hearing notice under Section 14(2) of the FCRA before the cancellation order was passed, and that they were not given a sufficient opportunity to present their case.
The High Court observed that the Ministry/authority cancelled the certificates solely on the ground that the organisations had not received foreign contributions during a specified period and had not used such funds for activities. The Court noted that Section 14(1)(e) permits cancellation if an organisation becomes defunct or fails to engage in reasonable activity in its field for two consecutive years. However, the Court emphasised that the provision does not require a society to continuously hold a certificate, receive foreign funds, or use foreign funds, provided it continues to operate using its own resources in accordance with its objects.
The Court also noted that no certified copy of the cancellation order was formally issued to the appellants; instead, they received the order by email on 4 February 2026.
Finding that a prima facie case had been made out and that the impugned cancellation order warranted a stay, the High Court granted ad-interim relief to the appellants and issued notices to the Union of India and other respondents returnable on 10 September for final disposal of the appeals.
