Delhi High Court: Union Of India V CHRI FCRA Appeal Redirected

• The Delhi High Court's Division Bench directed the Central government to apply to a single judge to challenge an order allowing CHRI to withdraw ₹20 lakh.
• The Central government had appealed the May 19, 2026, order, but the Division Bench disposed of the appeal, instructing a procedural approach.
• The single judge's order for fund withdrawal was issued in CHRI's plea against the MHA's September 2024 cancellation of its FCRA registration.
• The Division Bench requested the single judge to expedite proceedings and decide all pleas, including the Central government's application, as early as possible.
• All issues and grounds, including maintainability, remain open for argument before the single judge.

The court's decision underscores a procedural emphasis in handling challenges to interim orders related to the Foreign Contribution Regulation Act (FCRA).

The Delhi High Court recently instructed the Central government to formally apply to a single judge to challenge an interim order that permits the Commonwealth Human Rights Initiative (CHRI), a non-profit organization, to access ₹20 lakh from its reserve funds. A Division Bench, comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia, disposed of the Central government's appeal against the May 19, 2026, order, redirecting the government to pursue its challenge at the single-judge level.

This directive came during the hearing of the case, Union of India v. Commonwealth Human Rights Initiative FCRA, where the Central government had sought to overturn the single judge's decision. Instead of ruling on the merits of the appeal, the Division Bench emphasized the appropriate procedural avenue, ensuring that all arguments, including those concerning the maintainability of the original plea, could be thoroughly addressed by the single judge. The court's decision underscores a procedural emphasis in handling challenges to interim orders related to the Foreign Contribution Regulation Act (FCRA).

The original interim order, which allowed CHRI to withdraw ₹20 lakh, was issued by a single judge in response to an application filed by the non-profit. This application was part of CHRI's broader legal challenge against the Ministry of Home Affairs (MHA)'s decision to cancel its Foreign Contribution Regulation Act (FCRA) registration. The MHA had revoked CHRI's FCRA registration in September 2024, leading to significant restrictions on its ability to receive and utilize foreign contributions.

CHRI's plea before the single judge sought relief from the MHA's cancellation order, and the subsequent interim relief allowing fund access was a critical development for the organization. The Central government, represented by Additional Solicitor General (ASG) Chetan Sharma, then appealed this interim relief to the Division Bench, setting the stage for the recent procedural ruling.

In its ruling, the Division Bench explicitly requested the single judge to expedite the proceedings related to CHRI's writ petition and any application subsequently filed by the Central government. The court urged for a resolution as early as possible, highlighting the urgency associated with such matters. This instruction aims to ensure a swift and comprehensive review of the substantive issues at stake.

Furthermore, the Division Bench clarified that all parties would retain the liberty to press any pending applications and that all issues and grounds, including arguments regarding the maintainability of the original petition, would remain open for consideration by the single judge. This ensures that the full spectrum of legal arguments can be presented and adjudicated, providing a clear path forward for both the non-profit and the government in this ongoing legal battle concerning FCRA regulations.

This procedural directive from the Delhi High Court in the Union of India v Commonwealth Human Rights Initiative FCRA case is significant for non-governmental organizations operating under the Foreign Contribution Regulation Act. It illustrates the judicial process for challenging interim orders that impact an organization's financial operations, particularly when its FCRA registration is under scrutiny. The court's emphasis on expediting proceedings suggests an acknowledgment of the potential operational difficulties faced by NGOs when their access to funds is restricted.

The ruling also provides insight into the appellate process within the Delhi High Court for matters related to FCRA enforcement. By directing the Central government to approach the single judge rather than directly intervening, the Division Bench reinforces the established judicial hierarchy and procedural norms. This case, involving CHRI FCRA Delhi High Court, will continue to be a key reference for understanding the interplay between MHA's regulatory powers and judicial oversight, particularly concerning the Foreign Contribution Regulation Act interim order and challenges to MHA FCRA registration cancellation.

This ruling provides insight into the procedural avenues for challenging interim orders related to FCRA restrictions, particularly concerning fund access for NGOs. Lawyers advising non-profits should monitor this case for precedents on judicial intervention against MHA's FCRA enforcement actions.

Source: Original reporting via Bar and Bench