[FCRA license cancellation] Paying the price for dissent: Centre for Policy Research to Delhi High Court

The Delhi High Court on Tuesday asked the Central government to decide by September 5 the application filed by Centre for Policy Research (CPR) seeking to utilise funds pending in its bank accounts that have been frozen. .Justice Subramonium Prasad also directed the government counsel to bring the files related to the proceeding against CPR so that it can appreciate the nature of the inquiry conducted by the government. .The Court passed the order while dealing with a plea filed by the non-profit challenging the government's decision of February 27, 2023 suspending its Foreign Contribution Regulation Act (FCRA) license. Senior Advocate Arvind P Datar appeared for CPR and argued that it receives nearly 70% of its funds from abroad and because of the suspension of the FCRA license, the think-tank's operations have come to a grinding halt. It was further stated that more than 80 scientists and employees have left CPR because it has not been able to pay them salaries for nearly six months. "I am begging to release the salaries...You may not like any dissent in the country but what have those poor employees done? Home Ministry cleared in its audit, CAG [Comptroller and Auditor General] cleared me and then suddenly this happened. It is extremely sad if you are going to close down Indian think-tanks like this...One small dissent and this is done. This is a pattern," Datar submitted. He further informed the Court that CPR had filed an application under Rule 14 of the FCRA Rules in March to utilise the funds. However, even six months later, the government is yet to take a decision on the same. .Advocate Arunima Dwivedi appeared for the Central government and stated that the government has material against the NGO based on which these proceedings were initiated.She said that pursuant to the application filed by CPR, some clarifications were sought and reply to the same was received only in May. Dwivedi added that there is a process and that the government is being vigilant. .Justice Prasad considered the submissions and issued notice to the Central government. The Court also issued notice on the application seeking interim stay of the government's order suspending CPR's FCRA license and listed the case for further consideration on September 6. .CPR has been involved in research with a focus on India’s 21st-century challenges since the year 1973.It is headed by political scientist and former Principal of Lady Shri Ram College, Meenakshi Gopinath. Yamini Aiyar is the think-tank’s President and Chief Executive. The other members on its governing board include former foreign secretary Shyam Saran and Senior Advocate Shyam Divan..Troubles began for the non-profit soon after it was surveyed by the Income Tax department in September last year. Following the survey, IT reassessment proceedings started against the NGO, its FCRA license was suspended, and it subsequently lost its tax exemption status as well.In an order passed on May 24, the High Court stayed the reassessment proceedings against the NGO. Just last week, the Court also stayed IT department’s order cancelling its tax exemption status. .The government authorities have alleged that CPR was involved in the Hasdeo movement against coal mining in the Chhattisgarh forests and that it used some of the funds received for filing litigation and complaints rather than for research..Delhi High Court stays IT department order cancelling tax exemption to Centre for Policy Research