New Delhi, Jul 29 (PTI) The Delhi High Court Thursday permitted an NGO, whose registration has been temporarily suspended for alleged violations of foreign contribution law, to utilise a portion of its funds in the Central government's custody for payment of salaries to employees and personnel associated with its ongoing projects.

Justice Rekha Palli said that Commonwealth Human Rights Initiative (CHRI) made out a prima facie case to utilise the amount in custody to meet the expenses related to salaries.

“I am of the prima facie view that the petitioner has made out a prima facie case to utilise the amount lying in custody to the extent of 25 per cent to meet expenses pertaining to salaries of employees and other personnel engaged in projects undertaken before passing of the impugned order (of suspension),” the judge said.

Earlier this month, the high court had granted time to the Centre to consider allowing CHRI's request to permit it to utilise 25 per cent of the amount received as foreign funding.

Central government standing counsel Anil Soni sought more time from court to decide the CHRI's request as he informed that the concerned authority was awaiting the report of the field agency.

The judge, however, refused to accept the counsel's request and said, “How are these people going to be paid? I don't want to give you time”.

“Keeping in view COVID-19, the employees are finding it hard to meet ends..,” the high court noted.

It added that the report of the field agency could at best be used for the purposes of taking further action against CHRI and not for deciding the issue of payment of salaries.

“In my view, the decision whether the petitioner can be permitted to use portion of foreign contribution in possession (in terms of the law) cannot depend on the field agency. It can at best be a material to take further appropriate action on the suspension order,” the judge said while posting the matter for further hearing on October 5.

Senior Advocate Arvind Datar, representing CHRI, prayed for a direction to allow the NGO to use the funds for payment of salaries on compassionate ground and said that salaries for the month of July were yet to be paid.

Datar along with senior advocate C U Singh contended that CHRI was entitled to utilise up to 25 per cent of the amount in custody as per law until such time as the suspension of its registration was revoked.

In its petition, CHRI has sought quashing of the June 7 suspension order alleging that it was "patently without jurisdiction, ultra vires section 13 of the FCRA (Foreign Contribution (Regulation) Act), unreasonable, manifestly arbitrary, excessive and disproportionate, on the face of it being based on wholly incorrect facts and for violating basic principles of natural justice".

CHRI has argued that suspension order has completely paralysed its functioning, threatens the livelihood of its employees and casts a stigma on its reputation.

A 180-day suspension is a drastic measure that threatens the very existence of CHRI, apart from causing great harm to its reputation built painstakingly over three decades, the plea said, adding that the consequent freezing of its receipt and utilisation bank accounts have severely restricted its planned programme activities.

CHRI is now not in a position to pay salaries to its 40 staff members and consultants, whose livelihoods depend on it, especially in these difficult times precipitated by the COVID-19 pandemic, it has said.

The petition said that CHRI's current Executive Committee has a galaxy of legal luminaries, former top police officials, environmental leaders and Wajahat Habibullah, the first Chief Information Commissioner of India, is its Chairperson.

The other committee members include former Supreme Court judge Justice Madan B Lokur and former Delhi high court Chief Justice A P Shah.

The allegations against CHRI include mixing foreign contribution with domestic donation and non-intimation of specific accounts.

In 2016, CHRI's registration under the Foreign Contribution (Regulation) Act of 2010 was renewed up to October 31, 2021.PTI ADS

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