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Madras High Court Rules Conversion Groups Barred From Foreign Funds

Reported by Kunal Bhatia (Senior Writer) · The Hindu - National ·

Unconfirmed — Reported by one source so far

Reported by one source so far

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GeneralMadras High Court Rules Conversion Groups Barred From Foreign Funds
Representative image · Wikimedia Commons

Religious groups that take part in conversion work cannot get registration under the Foreign Contribution Regulation Act, the Madras High Court has ruled. The Madurai Bench issued this order while dismissing an appeal filed by the Kanzeon Public Charitable Trust based in Kodaikanal. Founded in 2021, the trust had set up a Zen Meditation Centre and sought an FCRA certificate after authorities rejected its initial request.

Court Observations

Justices G.R. Swaminathan and M.D. Sumathi noted that the trust's author is an ordained Christian priest known as Rev. Fr. Ama Samy SJ. The judges stated that organizations involved in converting people from one faith to another must be denied FCRA registration to protect the nation's secular fabric and social amity. The bench added that receiving foreign money for conversion work could harm national sovereignty. The court also clarified that this rule applies equally to all groups, noting that a fundamentalist Hindu group running conversion activities would also face rejection.

Form Disclosures

The court pointed out that the trust failed to correctly identify its true nature in Form FC-3A. While the trust stated it follows Zen Buddhist philosophy, it wrongly projected itself as a non-religious entity. The bench noted that Zen is a branch of Buddhism, making the trust a religious body. Judges stressed that applicants must give a full and honest disclosure, as any misrepresentation leads directly to the rejection of the application. The court further stated that receiving foreign funds is a privilege and not a right.

Context

The Foreign Contribution Regulation Act sets strict rules for associations and trusts seeking to receive money from abroad in India. Courts often review these permits to ensure foreign funds do not influence local religious and social activities in ways that disrupt public harmony.

ExplainerWhy this matters

What Happened

The Madras High Court ruled that trusts and charitable groups engaged in religious conversion cannot obtain registration under the Foreign Contribution Regulation Act. The judgment came during an appeal by a Kodaikanal-based trust that sought foreign funds for its Zen Meditation Centre but had its application rejected for misrepresenting its religious nature.

Why It Matters

This ruling sets a strict legal standard for how religious and charitable organizations must declare their core activities when applying to receive money from foreign donors. It highlights how Indian courts interpret statutory rules regarding national sovereignty, secularism, and the transparency required from entities seeking financial contributions from overseas.

What Happens Next

Organizations seeking foreign funds will need to ensure precise compliance and complete honesty in disclosing their religious or educational status on statutory forms. Authorities will likely scrutinize future applications more closely to separate cultural and educational bodies from religious ones.

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