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(k) The amended Section 17(1) specifies receipt of foreign contribution in designated FCRA account in the SBI, NDMB. An NGO is required to open such account for the purpose of remittances of foreign contribution. The proviso to Section 17(1) envisages that the FCRA account holder is free to add any FCRA account in any of the scheduled bank of his choice for the purpose of receipt and utilisation of foreign funds received in his FCRA account with the specified branch of the SBI at New Delhi i.e., SBI, NDMB. The operation of the FCRA account would be controlled by the account holder itself. The stipulation only requires the inflow of foreign contribution through designated channel which is to ensure effective implementation of proper regulatory and controlled measures. Sufficient time was given to the FCRA account holder to comply with the formalities as per the new dispensation.

109 W.P. (C) No.566 of 2021 and W.P. (C) No.751 of 2021

(b) It is stated that FCRA account is not a normal current/savings account. The transactions effected in this account ought to be strictly regulated, as predicated in the 2010 Act. SBI works in tandem with the instructions issued by the Government of India in that regard. The Government of India has issued a Standard Operating Procedure (SOP) with regard to opening and operation of FCRA account. The information in that regard has been disseminated to account holders and is in public domain, including by conducting Webinars from time to time. The main Branch of SBI has created a dedicated cell having over forty officials to deal with all the FCRA accounts at SBI, NDMB. They exclusively deal with FCRA accounts and have been provided with requisite infrastructure. SBI has made internal arrangements regarding sharing of details of 23,000 entities with branches of SBI all over India; liaising with foreign offices of SBI for credential verification of the overseas stakeholders; and have designated Nodal Officer up to the rank of Assistant General Manager in 17 local Head Offices, spread all over India for operating FCRA accounts. By this affidavit, SBI has refuted the grievance of the writ petitioners/registered associations about operational and other difficulties being faced by them in transacting/opening account in the designated Branch at New Delhi.

(e) This affidavit also reveals that SBI has more than two lakh employees working in branches in different parts of the country with network all over the country as well as abroad. It is stated that for the purposes of operating 23,000 FCRA accounts, there is no need to incur high administrative expenses. Instead, the Bank has augmented additional infrastructure required for that purpose in the designated Branch at New Delhi.

(f) It is further stated that by the time the affidavit was filed, about 20,000 FCRA accounts have already been opened, out of approximately 23,000 active organizations, and that the remaining registered associations were in the process of getting their accounts opened by approaching the main Branch at New Delhi. It is urged that the respondent-Bank (SBI) is offering all banking facilities as requested/demanded by the concerned account holder. SBI has denied that there is any delay in the process of opening of account and receiving of foreign remittances due to the volume of transactions or that it does not have necessary infrastructural capacity to handle queries from thousands of organizations, as alleged by the writ petitioners. At the same time, it has been fairly accepted that during the second phase of COVID-19, due to extraordinary situation, there may have been delay in some cases, but all the accounts have been made operational and are being accessed by the concerned FCRA account holders. The affidavit also mentions about the steps taken to streamline the operational issues in respect of FCRA accounts. The substance of this affidavit is to demonstrate that no inconvenience is being caused to the FCRA account holders, in any manner; and the Bank is fully equipped to handle the logistical issues concerning FCRA accounts in the main Branch as well as other branches across the country.

71. The fact that earlier FCRA account could be opened in any scheduled bank, cannot preclude the Parliament from legislating a law which requires inflow of foreign contribution in some other manner specified by law. Merely because the framework of acceptance of foreign contribution had been changed cannot be the basis to question the validity of the amended provisions. Introducing change for the betterment of governance is the prerogative and wisdom of the Parliament. The FCRA account operators cannot claim right of continuity of a deficient and flawed framework. Ordinarily, convenience of business and persons engaged in doing business must be uppermost in the mind of the Parliament/Legislature — to effectuate the goal of ease of doing business. However, the strict regime had become essential because of the past experience of abuse and misutilisation of the “foreign contribution” and cancellation of certificates of as many as 19,000 registered organisations on the ground of being grossly non- compliant. Despite such cancellation of large number of certificates of registration, until December 2021 there were reportedly 22,762 FCRA registered organisations presumably compliant with new dispensation. Further, as many as 12,989 organisations have applied for the renewal of the FCRA licence between 30.09.2020 and 31.12.2021. And as many as 5,789 organisations had not applied for renewal of FCRA licence, whose FCRA licence has ceased to be valid. A fortiori, it would certainly justify the need to have a holistic approach to ensure that the objective of the Principal Act is fulfilled, namely, of strict regulation of the inflow and utilisation of foreign contribution for the purposes for which it is so permitted, such as only cultural, economic, educational or social programme.