Donation, delivery or transfer by foreign source of any currency or any security, is a '‘foreign contribution’': HC

  • Corporate Law
  • knoweldge
  • financeseva

In the instant case, an agreement was reached between Kerala project LIFE MISSION and a voluntary humanitarian organization, namely, UAE Red Crescent by which latter agreed to give assistance to recent Kerala flood victims by spending 10 million UAE dirhams on constructing homes and a health Centre. Two petitioner companies entered into separate agreements with Consulate General of UAE, Trivandrum, Kerala for construction of residential apartments and the Part payment was transferred by UAE Consulate to accounts of his companies. 

The Construction work was started in property owned by State Government. Based on a local MLA claiming a crime under section 35, read with section 3 of FCR Act and section 120 B of IPC, CBI filed FIR against Petitioner. 

However, the petitioner contended that he did not come under ambit of Section 4 and registration of FIR against him was ultra vires and fell outside scope of Delhi Special Police Establishment Act, 1946 since there was no consent as mandated under section 6. 

He also alleged that he was asked by local Consular General of UAE through his Secretary to give 2 million UAE dirhams for awarding projects. The FIR registered and investigation initiated by CBI also brought under attack on reason that crime was registered on extraneous considerations with aim to gain political mileage and it will be used as a weapon against State Government under guise of said investigation. 

However, UAE Red Crescent would squarely fall under the purview of a "foreign source" as defined under section 2(1) (j) and donation, Provide or transfer made by any such foreign source either by any currency whether Indian or foreign or article or any security, donation would be made under the scope of expression "foreign contribution". 

Since the State Government or LIFE Mission did not receive any foreign exchange, security, donation, delivery of transfer of any article, criminal liability could not be extended against them.