
New Delhi:
In a landmark judgment, the Madras High Court has struck down the Ministry of Home Affairs’ decision denying FCRA registration to a charitable trust on the grounds that it was “religious” in nature. The court clarified that the Bhagavad Gita is not a religious scripture limited to any single faith and that teaching Gita, Vedanta, Sanskrit, or Yoga does not classify a trust as a religious organization.
Case Background
The Arsha Vidya Parampara Trust, established in 2017, promotes education in Vedanta, Sanskrit, and Yoga, and works on preserving ancient manuscripts. The trust applied for FCRA registration in 2021. Despite fulfilling the requirements, the Ministry rejected the application in September 2025, citing the trust as “religious” and therefore ineligible.
Court’s Observations
Justice G.R. Swaminathan emphasized that:
- The Bhagavad Gita is a moral and philosophical text, not limited to any one religion, and is an integral part of Indian civilization.
- Vedanta and Yoga are philosophical and wellness-oriented practices, not inherently religious activities.
- The Ministry’s reasoning did not meet the FCRA Section 11 requirements, which demand a clear and well-supported conclusion before denying foreign contributions.
The court noted procedural lapses, including the Ministry raising new allegations without giving the trust an opportunity to respond, which violated natural justice principles.
Funding Controversy Addressed
The Ministry had also highlighted a ₹9 lakh contribution from an NRI trustee received without prior FCRA approval. The trust accepted the oversight and settled the matter under Section 41 of the Act. The court clarified that settled violations cannot serve as a basis for rejecting FCRA registration.
Court Orders
The High Court directed the Ministry’s FCRA wing to reconsider the application, issue any new notice only with clear evidence, and complete the process within three months.
Significance
This ruling underscores that philosophical, educational, and cultural initiatives cannot be restricted under the guise of religion, providing clarity and relief to educational and wellness-focused organizations seeking foreign funding in India.
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