TMI Blog2001 (3) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... r under Section 482 of the Code of Criminal Procedure, has come to hold that a breach of the undertaking given by an Association under Section 6(1)(b) of the Foreign Contribution (Regulation) Act, 1976 [hereinafter referred to as 'the Act'] would not amount to contravention of the provisions of the Act within the meaning of Section 23 of the said Act and as such the criminal prosecution that had been launched, would not lie. The High Court having quashed the criminal proceedings, arising out of the two F.I.Rs, the Central Bureau of Investigation is in appeal. 3. The respondent-society, submitted an application in the prescribed form for registration under Section 6 of the Act for receiving foreign contribution. It was indicated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Assistant Director, appointed under Foreign Contribution (Regulation) Act, in the Ministry of Home Affairs and on the basis of reports submitted by the said Assistant Director, two First Information Reports were lodged against the society. The investigating agency, after inspecting into the allegations, submitted a charge-sheet under Section 6 read with Section 20(3) and it is at that stage, the respondent filed the petition under Section 482 of the Code of Criminal Procedure for quashing of the criminal proceedings. As stated earlier, the High Court having allowed the petitions and having quashed the criminal proceedings, the Central Bureau of Investigation is in appeal before this Court. 4. Mr. Altaf Ahmed, the learned Additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the persons concerned and such infraction must be held to be punishable under Section 23 of the Act and the same cannot be lightly brushed aside. 5. Dr. M.P. Raju, appearing for the respondent, on the other hand contended that Section 23 of the Act makes only the contravention of any provisions of the Act or any Rule made thereunder punishable, and the information provided in form FC-1 and violation thereof, would not constitute a contravention of the provisions of the Act or Rules made thereunder and as such, the High court rightly quashed the criminal proceedings. The learned counsel contends that the penal statutes which create offences, must be construed strictly and there is no rhyme or reason for construing the same liberally and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of 1976 Act was amended by Act 1 of 1985, making it obligatory for the associations to get themselves registered with the Central Government and then they could accept the contribution only through a specified branch of a bank. The act enables the Central Government even to inspect the accounts of persons or associations by insertion of Section 15A. The Act also has inserted Section 25A even prohibiting acceptance of foreign contribution under certain circumstances. This indicates the legislative intent and purpose behind the Act and, therefore, the provisions of the Act are required to be construed accordingly. Section 6 of the Act prohibits receipt of foreign contribution by an association unless the association gets itself registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of issue of such notification, accept any foreign contribution without the prior permission of the Central Government. 7. Section 23 which is the penal provision, provides thus: Sec. 23.- Punishment for the contravention of any provision of the Act.-(1) Whoever accepts, or assists any person, political party or organisation in accepting, any foreign contribution or any currency from a foreign source, in contravention of any provision of this Act or any rule made thereunder, shall be punished with imprisonment for a term which may extend to five years or with fine or with both. (2) Whoever accepts any foreign hospitality in contravention of any provision of this Act or any rule made thereunder shall be punished with impri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le that receipt of contribution and depositing the same in a bank other than the bank indicated in the application form FC-1, would be a violation of the provisions of Section 6(1)(b) itself inasmuch as no association is entitled to accept foreign contribution, unless the association agrees to receive the foreign contribution only through such one of the branches of the bank, as it may specify in its application for registration. The violation being a violation of the provisions of Section 6(1)(b), it would constitute an offence under Section 23 and, therefore, the High Court, in our opinion, committed serious error in quashing the criminal proceedings on a finding that it does not tantamount to violation of any provisions of the Act. Needl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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