Religious Conversion & FCRA: What Did The Madras High Court Rule?

The Madurai Bench of the Madras High Court has upheld the Centre's refusal to grant Foreign Contribution Regulation Act (FCRA) registration to a Kodaikanal-based trust running a Zen meditation centre, observing that organisations engaged in religious conversion cannot be granted such registration.

A Division Bench of Justices G R Swaminathan and M D Sumathi said religious organisations whose activities do not affect India's secular fabric and social harmony can apply for FCRA registration, but stressed that applicants must accurately disclose the nature of their activities. The court dismissed the appeal filed by Kanzeon Public Charitable Trust.

The trust, founded in 2021 and registered under Sections 12AB and 80G of the Income Tax Act, had sought FCRA registration to receive foreign contributions. It argued that its Zen Meditation Centre in Kodaikanal was not religious in nature.

The Centre opposed the plea, maintaining that its policy was to prevent foreign funds from being used for religious conversion or activities that could harm secularism and social harmony. The court noted that the trust's founder and moving force was ordained Christian priest Rev Fr Ama Samy SJ.

Court Says Religious Nature Must Be Disclosed

The bench held that the trust had incorrectly presented itself as a non-religious organisation in its FCRA application.

Under Rule 9 of the FCRA Rules, applicants are required to disclose the nature of their organisation. The court said Kanzeon's own description of its activities showed that it subscribed to Zen Buddhist philosophy and that Zen was a variant of the Mahayana Buddhist school.

"One has to make a clean breast of everything. One cannot keep any card up one's sleeve. This is no game of hide and seek," the bench said.

The judges added that there was no absolute right to receive foreign contributions. An organisation with a definite religious programme can apply for FCRA registration, but the government is empowered to reject an application under the statutory framework.

The court also drew a distinction between religious organisations and entities engaged in education or cultural activities.

It said organisations primarily involved in structured teaching of Vedanta, the Bhagavad Gita, the Upanishads, Yoga and allied Indian Knowledge Systems through classes, residential courses, publications, research or preservation of manuscripts should ordinarily be classified as educational or cultural institutions.

Where an organisation's programmes involve worship and rituals, however, it would fall within the religious category, the court said.

Court Says FCRA Restriction Applies Across Religions

The bench referred to Section 12(4)(a)(ii) of the FCRA, which deals with activities involving conversion from one religious faith to another.

The judges stressed that the provision applies irrespective of the religion involved, saying even a Hindu organisation engaged in "Ghar Wapsi" conversion activities could be denied FCRA registration.

The court clarified that it was not accusing Kanzeon of having a conversion agenda. Instead, it said the statutory restriction applies to organisations involved in such activity generally.

In its discussion, the bench also made broader observations contrasting Hinduism with Abrahamic religions, describing the latter as "inherently exclusive". It said India was a pluralist nation and that allowing foreign funds to facilitate religious conversion could, in its view, affect national sovereignty and social harmony.

The court's ruling was specifically concerned with the FCRA application and the trust's disclosure of its religious character. It ultimately held that the application had been correctly rejected because the organisation had not accurately identified itself as religious.

The bench dismissed Kanzeon Public Charitable Trust's appeal, upholding the Centre's decision to deny its FCRA registration.