Organisations engaged in religious conversion shall be denied FCRA registration: Madras HC
Only organisations whose activities do not affect nation’s secular fabric can receive foreign funds, says the Madurai Bench, rejecting an appeal by a charitable trust for registration under the Act
The Madras High Court has ruled that religious organizations engaged in converting people from one faith to another will not be granted Foreign Contribution Regulation Act (FCRA) registration. The court's decision was made in response to a Civil Miscellaneous Appeal filed by the Kanzeon Public Charitable Trust, a trust founded in 2021 and registered under Sections 12AB and 80G of the Income Tax Act, 1961.
The trust sought an FCRA registration certificate for its Zen Meditation Centre in Kodaikanal, arguing that its activities were not religious. However, the court held that Zen Buddhism is a variant of Mahayana Buddhist School, which is inherently exclusive, and therefore, the trust's claim that its activities were non-religious was rejected.
The bench emphasized the importance of accurately disclosing the nature of the organization, stating that failure to do so would result in rejection of the application. The court also highlighted the need to distinguish between religious organizations and cultural or educational entities, stressing that organizations primarily engaged in systematic teaching of Indian Knowledge Systems cannot be classified as religious institutions.
The court emphasized that foreign funds should not be allowed for conversion activities, as it would endanger the sovereignty of the nation.
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