Court Directs Ministry of Home Affairs to Expedite Process for Filing and Payment of Compounding Fees Under FCRA
In a significant ruling, the Bombay High Court has allowed Lawyers Collective, an NGO, to apply for the compounding of offenses under the Foreign Contribution Regulation Act (FCRA), 2010. The court's decision permits the NGO to proceed with the compounding application despite the pending quashing petition of a First Information Report (FIR) initially registered under the Indian Penal Code (IPC), FCRA, and the Prevention of Corruption Act.
Presiding over the case, Justice Milind N. Jadhav concluded that the pending status of the quashing petition or the criminal proceedings should not obstruct the accused from availing themselves of the statutory remedy of compounding under Rule 21 of the FCRA Rules, 2011. This ruling acknowledges a valuable right for the accused to apply for compounding when the surviving charges are solely under the FCRA.
The court directed the Ministry of Home Affairs to provide the necessary electronic resources, including an email ID and portal details, to facilitate the filing of the compounding application and the payment of the associated fee. The petitioners, represented by Senior Advocate Mr. Amit Desai, have expressed readiness to comply with the procedural requirements, including the payment of a Rs. 3,000 compounding fee.
The legal proceedings stemmed from a writ petition filed by Lawyers Collective, seeking to quash an FIR registered by the Economic Offences Wing, Mumbai. Initially, the FIR included allegations under the IPC and the Prevention of Corruption Act, both of which were subsequently dropped following an investigation. The charge-sheet now pertains exclusively to offenses under the FCRA, making them eligible for compounding.
The court's order mandates compliance with its directions within a week and urges the Ministry of Home Affairs to resolve the compounding application expeditiously, ideally within four weeks of filing. The merits of the case remain open for consideration, with the quashing petition scheduled for a hearing on October 29, 2026, during which interim protection for the petitioners will continue.
This decision underscores the judiciary's recognition of the procedural rights available to individuals and organizations under the FCRA, facilitating a fair and efficient resolution process.
Bottom Line :
Foreign Contribution Regulation Act, 2010 - Compounding of offence - Pendency of quashing petition or criminal proceedings cannot preclude accused from availing statutory remedy of compounding under Rule 21 of FCRA Rules, 2011 - Where charge-sheet survives only for FCRA offences alleged to be compoundable, accused acquires valuable right to apply for compounding - Court directed Ministry of Home Affairs to provide email ID / website / portal details for filing compounding application and payment of compounding fee.
Statutory provision(s):
Foreign Contribution Regulation Act, 2010, Foreign Contribution Regulation Rules, 2011 Rule 21, Indian Penal Code, 1860 (IPC), Prevention of Corruption Act, 1988
Lawyers Collective v. Union of India, (Bombay) : Law Finder Doc id # 2989253
