Delhi High Court Upholds Validity Of Centre’s 2013 Notification For Compounding Offences Before Institution Of Prosecution Under FCRA
Case: Mizpah Charitable Trust V. Union Of India
Coram: Justice Vibhu Bakhru and Justice Amit Mahajan
Case No.: W.P.(C) 2560/2014
Court Observation: “We are unable to accept that the impugned notification is ultra vires to the Constitution of India. It merely stipulates the terms on which given offences can be compounded,”
“It is clear from the above that the petitioner was required to furnish the annual returns in Form FC-6 along with its final accounts (income and expenditure statement, receipt and payment account and balance sheet) within nine months of the end of the relevant financial year. Therefore, the petitioner was required to file the annual return for the financial year ending on 31st March of any year on or before 31st December of that year. There is no ambiguity that the petitioner was required to file the annual returns within the prescribed period in compliance with the provisions of the FCR Act,”
“It is relevant to note that the FCR Act and FCR Rules came into force with effect from 01.05.2011. Failure to file annual returns in terms of Rule 17 of the FCR Rules prior to 01.05.2011 cannot be construed as an offence under the FCR Act. Clearly, the petitioner could not be held guilty of an offence of not filing the returns under the FCR Act, prior to it coming into force”
“This does not amount to imputing any act committed prior to the FCR Act coming into force as an offence under the said Act,”
“Before concluding, it would also be relevant to clarify that the impugned order enables the petitioner to compound the offence of non- filing of the annual return within the stipulated time. However, the petitioner is not compelled to pay the penalty and apply for compounding of the offences, if he does not wish to do so. The only consequence of not availing the opportunity to compound the offence is to run the risk of prosecution that may be instituted,”
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