‘Death by a thousand cuts’: NGO gets relief from Delhi High Court to pay staff
Court permits Commonwealth Human Rights Initiative, which is facing FCRA cancellation and Income Tax exemption hurdles, to withdraw Rs 20 lakh from own funds for recurring expenses
The court, deeming it appropriate, directed for release of Rs 20 lakh from the reserve funds of CHRI and that the disbursal of the amount be made by CHRI directly. (Express Photo) The Delhi High Court Tuesday allowed Commonwealth Human Rights Initiative (CHRI) to withdraw Rs 20 lakh from its own account after the NGO approached the court, flagging that it has exhausted funds from its domestic account to even pay for its recurring expenses.
Earlier, on April 24, senior advocate Arvind Datar, representing CHRI, had told the court that the NGO’s funds will get over on June 30, which will render the NGO, founded by jurist Soli Sorabjee, incapable of paying salaries and other recurring expenses.
The Ministry of Home Affairs (MHA) had cancelled the NGO’s Foreign Contribution Regulation (FCRA) Act registration in September 2024 for the second time. It had first cancelled it in April 2022.
However, the April 2022 cancellation was set aside by the Delhi HC in July 2024. The September 2024 cancellation was challenged by the NGO before the Delhi HC in January 2025; it remains pending.
Additional Solicitor General (ASG) Chetan Sharma, representing the Centre, proposed to the court on Tuesday that as an “out of the way” measure, since CHRI’s request pertains to disbursal of salaries, the NGO can share the details following which the Centre will verify it and disburse salaries directly.
Sharma also referred to an April order in the case of non-profit organisation South Asia Foundation (SAF), where SAF too, with its FCRA licence cancelled, had agreed to the government directly disbursing the appropriate amount to the necessary entities.
However, Datar proposed if they may be allowed to dip into their own deposits and then furnish the details of payments made through a chartered accountant-verified certificate.
Datar also told the court that CHRI does not operate with full-time employees but rather consultants who prepare project reports for the NGO. “Consultancy charges are there. The amount is not much. Because of my income tax cancellation (80G registration), I’m in a soup. I was managing with local donations, but local donations have stopped… I have Rs 4 crore of deposits. Suppose I draw (from there), pay the salaries, pay the charges, and then get a chartered accountant certificate and file it with them (Centre)… (because) by the time I ask them (for disbursal of requisite amount) and they reply (as per ASG Sharma’s proposal), it will be July. The whole thing is death by a thousand cuts, I’m very sorry to say.”
“All NGOs have been hit across the board (with FCRA cancellation by the government). Centre for Policy Research (an independent, non-profit think tank), it was the only Indian think tank in the global 20 think tanks for policy research… Four people are working now. Take humanitarian consideration. Just don’t object for the sake of objecting. I’m not asking to pay a dividend. There is interest, bank charges, consultant fees… consultant has a wife and children, where will he go. It is just for Rs 11 lakhs, my deposit is of Rs 4 crore. If I’m permitted Rs 25 lakh, I’ll spend it and give an account (of the disbursals),” Datar added.
Justice Purushaindra Kaurav, accepting Datar’s argument and addressing ASG Sharma, said orally, “These organisations are working for quite a long time.”
ASG Sharma, however, countered, “They are working in areas where they should not be working. Even now, they are aligning with people whose name I cannot take. If I take his name, he is George Soros.”
Justice Kaurav orally responded, “If Rs 25 lakh is directed to be released with a chartered-accountant certificate, the information where this amount has been disbursed can also be placed before court. It is not that Rs 25 lakh we are directing to be released by the Government of India. This is the petitioner’s own fund. This Rs 25 lakh does not seem unreasonable.”
The court, deeming it appropriate, directed for release of Rs 20 lakh from the reserve funds of CHRI and that the disbursal of the amount be made by CHRI directly.
The court made it clear that CHRI shall be entitled to utilise the amount towards various recurring expenses as required, and the expenditure shall be authenticated by a chartered accountant. CHRI will have to submit the chartered accountant’s certificate and entire details of disbursal from the account on the next date of hearing.
On March 31, the NGO’s request for renewal of registration under 80G of the provisions of the Income Tax Act, which permits an NGO to avail income tax exemption, was denied by the authorities, citing the NGO’s cancelled FCRA registration. According to CHRI, without the 80G registration, it has no domestic donors either.
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