The Deadly Cough Syrup Crisis: Child Deaths in Chhindwara and Rajasthan

 

The Deadly Cough Syrup Crisis: Child Deaths in Chhindwara and Rajasthan

In the quiet districts of Madhya Pradesh and Rajasthan, a heartbreaking health crisis has unfolded, claiming the lives of at least 11 young children in just two weeks—nine in Madhya Pradesh's Chhindwara district and two in Rajasthan. What began as routine seasonal illnesses—colds, fevers, and coughs—spiraled into a nightmare of kidney failure and sudden deaths. Investigations point to contaminated cough syrups as the prime suspect.

As of October 3, 2025, inquiries are ongoing, but the tragedy is a stark reminder of the vulnerabilities in India’s pharmaceutical supply chain—and the recurring pattern where government action comes only after fatalities occur.

1. The Tragedy Unfolds

The crisis first emerged in Chhindwara, where six children under five died of acute kidney failure between mid-September and early October. By October 1, the toll had risen to nine. Similar cases surfaced in neighboring Rajasthan, including two more child deaths linked to suspected cough syrup use.

Victims had consumed syrups such as:

• Coldrif/Coldfref (Sresan Pharmaceuticals, Tamil Nadu)
• Nextro (manufacturer unspecified)
• Dextromethorphan hydrobromide syrup (Kaysons Pharma, Jaipur – batches KL-25/147, KL-25/148)

Symptoms started as viral-like infections but progressed rapidly to reduced urine output, swelling, and kidney failure. Parents described how their children initially improved, only to deteriorate fatally within days.

The echoes of past global scandals are chilling—such as the 2022 Gambia case, where Indian-made syrups containing diethylene glycol (DEG) killed over 60 children.

Currently, over 1,400 children in affected areas are under monitoring, with ASHA workers conducting door-to-door health checks. No infectious outbreak has been confirmed; suspicion remains firmly on chemical contamination.

2. Suspected Culprit: DEG-Contaminated Syrups

Investigators believe the syrups may have been adulterated with diethylene glycol (DEG), a toxic industrial solvent sometimes substituted for safe pharmaceutical excipients to cut costs.

• Toxic pathway: DEG poisoning causes gastrointestinal distress, acute kidney injury, and neurological damage. Children are especially vulnerable, often requiring urgent dialysis to survive.
• State bans: Madhya Pradesh has banned dextromethorphan syrups statewide, while Rajasthan halted 19 suspect batches. Tamil Nadu froze stocks at Sresan Pharmaceuticals’ plant.
• Testing underway: The National Centre for Disease Control (NCDC) and CSIR labs are analyzing samples; results are awaited.

India has faced similar tragedies before (2023, 2022, earlier decades). A clear pattern of lax quality control and weak enforcement emerges.

3. Government Response: Quick but Reactive

Authorities have scrambled to contain the fallout:

• Children with symptoms lasting over two days must now be observed at civil hospitals.
• Private doctors are barred from independently treating suspected viral cases.
• Statewide bans imposed on suspect syrups in MP and Rajasthan.
• Stocks frozen at Sresan Pharma in Tamil Nadu.

Yet critics argue the response is reactive. India’s regulator, the Central Drugs Standard Control Organisation (CDSCO), suffers from understaffing and weak post-marketing surveillance. Historically, bans follow deaths rather than proactive inspections.

4. Accountability: Who Is Responsible?

Actor	Role	Failures	Action Taken (Past & Present)
Manufacturers (Sresan Pharma, Kaysons Pharma)	Produce/test syrups	Skipping DEG testing; false certificates	Stock freezes, temporary suspensions, probes
Suppliers	Provide excipients	Supplying industrial-grade materials	Rarely prosecuted; weak traceability
Regulators (CDSCO/States)	Approve, inspect, recall	Weak inspections; delayed recalls	Investigations, but rarely arrests
Health Depts.	Distribute via schemes	No independent testing	Monitoring protocols introduced
Distributors/Pharmacies	Sell to consumers	Ignoring recalls	Minimal accountability so far

 

5. Precautions for Parents

• Avoid self-medication for children with OTC syrups.
• Check batch numbers before purchase.
• Buy only from licensed pharmacies.
• If poisoning suspected, rush to hospital immediately for supportive care (fluids, dialysis).
• Report suspect medicines to drug controllers and health authorities.

6. Legal Options for Parents

Families seeking justice have multiple legal remedies:

(a) Criminal Action

• Bharatiya Nyaya Sanhita (BNS), 2023
• Sec. 106 – Causing death by negligence.
• Sec. 276 & 277 – Adulteration and sale of adulterated drugs.
• Drugs & Cosmetics Act, 1940
• Sec. 27 – Life imprisonment for spurious/adulterated drugs.

👉 Parents can file FIRs and complaints with drug inspectors.

(b) Consumer Protection

• Compensation claims under the Consumer Protection Act, 2019 for defective products.
• Commissions at district, state, or national level depending on claim amount.
• Option for class action complaints.

(c) Medical Negligence

• Hospitals/pharmacies may be liable if they dispensed suspect syrups without diligence.
• Remedies via consumer courts or civil suits.

(d) Writs & PILs

• High Courts (Art. 226) or Supreme Court (Art. 32) for:
• Court-monitored probes (CBI/SIT).
• Interim compensation.
• Reforms in regulatory monitoring.

(e) Government Liability

If distributed under govt schemes, the state may be vicariously liable, as courts have held in vaccine/sterilization mishap cases.

7. Towards Systemic Reform

This tragedy highlights systemic issues:

• Weak enforcement of Good Manufacturing Practices (GMPs).
• Lack of routine raw material testing.
• Event-driven regulation instead of preventive inspections.
• Absence of fast-track compensation frameworks for victims.

International collaboration with WHO and stricter CDSCO-led oversight are urgently needed to prevent repeat disasters.

8. Demands from the Government

To ensure such tragedies are not repeated, urgent systemic reforms are needed. Families, activists, and public health experts demand that the Union and State Governments:

1. Mandatory DEG and PEG Testing

   • Require batch-wise testing of all syrups for toxic solvents like diethylene glycol (DEG) and ethylene glycol (EG) before market release.

2. Strengthen CDSCO and State Drug Regulators

   • Increase staffing, training, and funding for the Central Drugs Standard Control Organisation (CDSCO) and state drug controllers.

   • Conduct risk-based inspections of pharma plants, not just paper audits.

3. Transparent Drug Recalls

   • Establish a public online database of banned/withdrawn batches accessible to parents, doctors, and pharmacists in real time.

4. Fast-Track Compensation Mechanism

   • Create a no-fault compensation fund for victims of contaminated drugs, ensuring families don’t spend years in courts.

5. Accountability for Manufacturers

   • Strictly enforce BNS 2023 and Drugs & Cosmetics Act provisions against negligent manufacturers, including criminal prosecutions and permanent license cancellations.

6. Independent Forensic Testing Labs

   • Expand government-run and NABL-accredited labs to ensure unbiased, rapid testing of drugs across all states.

7. Public Awareness Campaigns

   • Launch nationwide campaigns urging parents to avoid self-medicating children, verify medicines, and report adverse reactions.

8. Whistleblower Protection

   • Introduce legal protections for insiders in pharma companies who expose unsafe practices.

9. Conclusion

The Chhindwara cough syrup crisis is not just a local tragedy but a national alarm bell. Parents mourning their children must navigate complex legal paths for justice—from criminal prosecutions under the BNS to consumer claims, negligence suits, and constitutional remedies.

But beyond courtroom battles, the real solution lies in systemic reform—ensuring that profit never trumps child safety. Until then, each tragedy will only add to India’s grim list of preventable deaths. Children’s lives are too precious to be the price of regulatory failure.

#CoughSyrupCrisis #DrugSafety #PublicHealthCrisis #JusticeForChildren #PharmaAccountability

 

Affordable Housing in Gurgaon – A Policy Gone Wrong or Failed by Builders?

Affordable Housing in Haryana: Dreams Sold, Consumers Betrayed

Affordable housing was launched as a flagship mission of the Modi Government — to ensure “Housing for All.” In Haryana, especially in Gurugram, the state government’s Affordable Housing Policy was projected as a step towards accessible, decent homes for the middle class. Builders proudly displayed licenses from the Department of Town and Country Planning (DTCP) and registration under RERA, giving homebuyers a sense of safety and official backing.

But reality tells a very different story. What was meant to be a lifeline for ordinary citizens has become a nightmare. Projects are delayed, basic infrastructure is missing, and regulatory bodies appear more interested in collecting fees than protecting consumers.

Promises vs. Reality

On paper, affordable housing licenses require builders to ensure basic infrastructure — access roads, water, power, sewage, and safety. RERA mandates that no possession certificate can be given until essential services are complete. Yet, in Gurugram, builders are getting approvals and occupation certificates without delivering the basics.

• GLS Central Avenue (Sector-92, Gurugram): Families who invested their savings complain of severe construction defects, poor facilities, and lack of promised amenities. Possession was handed over, but essential services remain incomplete.
• Signature Global City Phase-1 (Sector-37D): Buyers were promised four 24-metre-wide approach roads leading to Dwarka Expressway. Today, only a narrow 8-metre revenue road exists, filled with potholes. Other proposed roads are either blocked by agricultural land or stuck in government files.
• ROF Alante (Sector-108): Families live in fear and frustration — taxis refuse to enter the narrow lanes, emergency vehicles struggle to reach homes, and residents report water and safety issues.

In each of these cases, builders marketed grand promises, obtained official licenses and RERA approvals, but delivered far less. The worst part? Occupation certificates were still granted.

The Human Cost

Behind every flat is a family that believed in the dream of affordable housing.

• A father who thought his children would have safe roads to school now watches them walk through muddy, broken paths.
• An elderly mother finds it impossible to call an ambulance at night because taxis and emergency vehicles avoid the poorly connected areas.
• Working couples who poured their life savings into these homes now face extra maintenance costs and daily safety risks — all for flats “approved” by authorities.

One resident of Signature Global’s project said: “We were promised wide roads and world-class connectivity. What we got was an isolated pocket cut off from the city. Our dream home has become a daily struggle.”

Are Authorities Hand-in-Glove with Builders?

This is the most troubling question.

Why does DTCP issue licenses without verifying ground realities?
Why does HRERA grant registrations and completion certificates even when essential services are missing?
Are these agencies meant to protect consumers or only to collect license fees, external development charges (EDC), and penalties?

The silence of the Haryana government and its regulators is deafening. Their apathy fuels the suspicion that builders and officials are working hand-in-glove, while consumers are left to fight alone.

As one angry homebuyer asked: “Are government bodies there only to collect money, or to safeguard the public who rely on their approvals?”

Problems Faced by Consumers

• Delayed projects — waiting years beyond promised possession.
• Lack of infrastructure — no proper roads, water, or sewage facilities.
• Safety risks — children and elderly exposed to dangerous access paths.
• Hidden costs — arbitrary maintenance charges despite poor services.
• No accountability — builders get away, authorities look away, consumers suffer.

What Can Consumers Do?

Even with stacked odds, consumers are not helpless. Steps include:

1. Filing complaints with HRERA – highlighting missing infrastructure, incomplete services, and violation of Section 11(4)(d) of RERA.
2. Approaching Consumer Commissions – demanding compensation for deficiency in service and false promises.
3. Writ petitions in High Court – seeking judicial directions against the state and DTCP for granting illegal approvals.
4. Collective action – forming Resident Welfare Associations (RWAs), joining together to demand accountability.
5. Media & Public Pressure – using platforms like Hindustan Times investigations to push government action.

Conclusion: A Broken Promise

Affordable housing in Haryana was supposed to empower ordinary families. Instead, it has turned into a story of betrayal. Builders keep making profits, the government collects its charges, regulators issue certificates — and the consumer is abandoned.

If this continues, “Housing for All” will remain nothing more than a hollow slogan. The need of the hour is clear: strict enforcement, transparency, and a government that stands with the people, not the builders.

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#GLSCentralAvenue #SignatureGlobal #ROFAlante #AffordableHousing #ConsumerRights #HaryanaHousing #RERA #DTCP
#BrokenPromises #HousingForAllOrNone #ConsumerJustice #RERAReform #GurugramHousingCrisis #AccountabilityNow

 

🚨 A Growing Crisis in Amusement Park Safety in India

🚨 Festive Season Rides in India: Urgent Need for Safety Measures

As India prepares to celebrate Diwali and other major festivals, cities across the country host numerous amusement rides and temporary fairs to bring joy to families. However, what is meant to be a time of celebration has increasingly become a source of danger, with several unfortunate accidents resulting in serious injuries and even fatalities.

Recent months have highlighted the urgency of this issue. On August 17, 2025, in Navsari, Gujarat, a spinning tower drop ride collapsed, injuring four people, including two children. In Chennai, on May 28, 2025, a roller coaster malfunction left 30 people stranded 50 feet above the ground for nearly three hours. Earlier, in April 2025 in Delhi, a 24-year-old woman tragically lost her life after a seat belt failed on a roller coaster. Incidents in Solapur and Rajkot have also claimed multiple lives and caused critical injuries due to poor safety compliance.

These accidents are not isolated. Many temporary rides operate without BIS certification or municipal permits, lack trained operators, and often go unchecked despite being promoted widely on social media. During festive seasons, this combination of negligence and high footfall dramatically increases the risk to children and adults alike.

The Justice Action Network (JAN) has formally raised these concerns with the Central Consumer Protection Authority (CCPA) through a detailed complaint submitted on July 12, 2025 (Ref: JAN/12/07/25), requesting immediate action. The complaint urged a suo motu investigation into systemic safety lapses, mandatory safety guidelines for temporary rides, accountability for digital platforms promoting uncertified venues, and the creation of a centralized accident registry. Despite follow-ups, no meaningful action has been reported.

India does have BIS standards for amusement and water rides, such as IS 15475 (Parts 1-6) and IS 15492 (Parts 1-3), but compliance remains mostly voluntary, and enforcement is weak, particularly for temporary festival rides. Globally, countries like the U.S., U.K., China, and EU nations maintain strict, enforceable ride safety regulations, including mandatory certifications, inspections, maintenance logs, centralized accident reporting, and public awareness campaigns during peak seasons. Adopting such practices in India could prevent future tragedies.

Consumers also have a role to play. Before boarding rides, they should check for BIS certification, examine ride conditions, ensure safety restraints are functional, supervise children on age-appropriate rides, and avoid rides in adverse weather. Unsafe conditions or accidents should be reported promptly to the CCPA (com-ccpa@gov.in), local police, municipal authorities, or consumer forums. Additionally, spreading awareness through social media and community networks can help protect others.

With the festive season bringing large crowds, immediate action is critical. JAN has appealed directly to the Hon’ble Prime Minister of India and the Minister of Consumer Affairs, urging urgent enforcement of safety standards, regular inspections, accountability for operators and online promotion platforms, and nationwide consumer education campaigns.

This festive season, the safety of amusement rides should be treated as a national priority. Families deserve celebrations that are joyful and safe. With strong regulatory action and vigilant consumer participation, further tragedies can be prevented, ensuring that festivals remain a time of happiness rather than sorrow.

For more details, the full complaint by JAN is available [here]. A visual safety guide for festival-goers has also been prepared, highlighting step-by-step checks and complaint procedures that can be shared widely on social media.

During Diwali and other festivals, temporary fairs with amusement rides spring up in every city. Many of these rides:

• Operate without BIS safety certification or local permits.

• Lack trained operators and regular maintenance checks.

• Are promoted widely on social media without verification.

This environment creates a dangerous situation for children and adults alike, turning festive fun into potential tragedy.

Our Complaint to CCPA

On July 12, 2025, I submitted a detailed complaint to the CCPA (Ref: JAN/12/07/25) requesting:

1. Suo motu investigation into systemic safety lapses.

2. Mandatory safety guidelines for temporary and festive rides.

3. Accountability for digital platforms promoting uncertified venues.

4. A centralized accident registry for amusement and adventure activities.

5. Collaboration with BIS and Ministry of Tourism for enforceable safety codes.

6. Launch of a ‘Jago Grahak Jago’ campaign to educate consumers.

A follow-up email was sent on October 1, 2025, emphasizing the urgency of immediate action during the festive season.

🌍 Learning From Global Best Practices

Countries like the U.S., UK, China, and EU member states have enforceable ride safety standards, including:

• Mandatory certifications and regular inspections.

• Maintenance logs for operators.

• Centralized accident reporting and investigations.

• Suspension of rides during adverse weather or non-compliance.

• Public awareness campaigns during peak seasons.

Adopting similar practices in India can significantly improve safety and prevent avoidable injuries.

🆘 How Consumers Can Protect Themselves

If you witness an accident or notice unsafe rides, you can take the following steps:

1. File a Complaint with CCPA

• Email: com-ccpa@gov.in

• Website: https://www.ccpa.gov.in

• Include location, ride details, photos/videos, and description.

2. Contact Local Authorities

• Police: Call 100 in case of immediate accidents.

• Municipal Authorities: Responsible for temporary fair permits.

3. Consumer Forums / District Commission

• File a formal complaint if CCPA or local authorities fail to act.

4. Raise Public Awareness

• Share unsafe experiences on social media to alert other consumers.

• Encourage friends and family to check ride safety before boarding.

The Need for Immediate Action

With festive seasons bringing massive crowds to amusement rides, urgent action is essential:

• Strict enforcement of BIS guidelines for all rides.

• Regular inspections for both permanent and temporary rides.

• Accountability for operators and online promotion platforms.

• Centralized accident reporting for better monitoring and enforcement.

These steps are crucial to ensure public leisure spaces are genuinely safe.

 Call to Action

Consumers, media, and safety activists must demand accountability. Regulators must enforce safety standards, particularly during festive seasons, to prevent avoidable deaths and injuries.

Azim Premji Scholarship 2025: Empowering Girl Students for Higher Education

 

Azim Premji Scholarship 2025: Empowering Girl Students for Higher Education

The Azim Premji Foundation has launched the Azim Premji Scholarship 2025 to support girl students from economically disadvantaged backgrounds in pursuing higher education. This initiative aims to bridge the educational gap and empower young women to build a brighter future.

📌 Key Highlights

• Scholarship Amount: ₹30,000 per year

• Duration: Full duration of the undergraduate degree or diploma course (2–5 years)

• Mode of Disbursement: Direct transfer to the student's bank account

• Eligible Courses: Recognized undergraduate degree or diploma programs at government or credible private institutions

📝 Eligibility Criteria

To be eligible for the Azim Premji Scholarship 2025, applicants must meet the following conditions:

• Gender: Female

• Educational Background: Must have completed both Class 10 and Class 12 from government schools

• Admission Status: Must have secured admission in the first year of a recognized undergraduate degree or diploma course (2–5 years duration) at a government or credible private college or university

• Geographical Location: Applicants must belong to one of the following states:

  • Arunachal Pradesh

  • Assam

  • Bihar

  • Chhattisgarh

  • Jharkhand

  • Karnataka

  • Madhya Pradesh

  • Manipur

  • Meghalaya

  • Mizoram

  • Nagaland

  • Odisha

  • Puducherry

  • Rajasthan

  • Sikkim

  • Telangana

  • Tripura

  • Uttar Pradesh

  • Uttarakhand

📅 Application Timeline

• Round 1 Application Window: Opened on 1st September 2025 and closed on 30th September 2025

• Round 2 Application Window: Scheduled to open on 10th January 2026

📄 Required Documents

Applicants must upload the following documents during the application process:

• Passport-sized Photograph: A recent color photograph (2x2 inches)

• Signature: A clear image of the applicant's signature on a plain white paper

• Aadhaar Card: A clear, colored, and unedited soft copy of the front side of the Aadhaar card

• Academic Records: Original marksheets of Class 10 and Class 12

• Proof of Admission: One of the following documents as proof of admission to the college:

  • Provisional admission certificate

  • Bona fide certificate

  • Fee receipt

💡 Benefits of the Scholarship

The Azim Premji Scholarship 2025 offers the following benefits:

• Financial Support: ₹30,000 per year to cover tuition fees, travel expenses, and academic materials

• Duration: Support for the entire duration of the undergraduate degree or diploma course

• Renewal: The scholarship is renewable annually, subject to the student's continued enrollment and academic performance

🔗 How to Apply

Interested candidates can apply online through the official Azim Premji Foundation Scholarship Portal: Apply Now  https://azimpremjifoundation.org/what-we-do/education/azim-premji-scholarship/

https://www.business-standard.com/education/news/azim-premji-scholarship-2025-deadline-eligibility-and-procedure-to-apply-faq-check-here-nc-125093000894_1.html 

🔄 Scholarship Renewal

For students who received the scholarship in the 2024–25 academic year, the renewal process involves uploading the current year's college enrollment proof on the Scholarship Portal. The deadline for renewal has been extended to 15th October 2025.

🌟 About the Azim Premji Foundation

The Azim Premji Foundation is dedicated to improving the quality and equity of education in India. Through initiatives like the Azim Premji Scholarship, the foundation aims to support students who aspire to make a significant impact in the field of education and social development.

MHA Directs NGOs to File FCRA Renewal Four Months Before Expiry: Key Compliance Checklist

MHA Directs NGOs to File FCRA Renewal Four Months Before Expiry & 2025 FCRA Compliance Update: A Comprehensive Guide

By Public Right Action Network (PRAN)

The Ministry of Home Affairs (MHA) has recently emphasized stricter compliance norms under the Foreign Contribution (Regulation) Act (FCRA), 2010, through two critical developments in 2025:

1. The MHA Public Notice dated 30 September 2025, mandating NGOs to submit FCRA renewal applications at least four months before the expiry of their certificate.

2. The FCRA (Amendment) Rules, 2025, notified on 26 May 2025, which impose more rigorous documentation, reporting, and affidavit requirements for NGOs seeking registration, renewal, or prior permission.

Together, these directives highlight the Indian government’s commitment to transparency, accountability, and timely scrutiny of foreign contributions, and signal that NGOs must adopt robust internal compliance systems.

🔗 MHA Public Notice (30 September 2025): Click Here
🔗 FCRA Amendment Rules, 2025 (26 May 2025 Gazette): Click Here

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Understanding the MHA 4-Month Renewal Directive

FCRA registration is critical for NGOs that receive foreign contributions for their developmental or social activities. Traditionally, Section 16 of FCRA, 2010 allowed NGOs to apply for renewal within six months prior to expiry. However, MHA’s 2025 notice highlights a recurring administrative problem: many NGOs submit renewal applications less than 90 days before expiry.

This delayed filing creates two major issues:

1. Insufficient time for scrutiny – Renewal applications require inputs from multiple departments, including security clearances. Late applications may not be fully processed before expiry.

2. Automatic lapse of registration – According to Rule 12(5) of FCRR, 2011, if the certificate expires while renewal is pending, NGOs cannot legally receive or utilise foreign contributions.

Consequently, NGOs risk disruption of projects, delays in fund utilization, and potential reputational damage.

To mitigate this, MHA now strictly advises filing renewal applications at least four months before expiry. While the law provides a six-month window, the four-month recommendation is administrative guidance aimed at preventing operational disruption.

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FCRA (Amendment) Rules, 2025 – Key Updates

In addition to timely renewals, the May 2025 FCRA amendments impose stricter compliance obligations, emphasizing transparency in fund utilisation and enhanced documentation requirements. Here’s a detailed breakdown:

1. Enhanced Documentation Requirements

The amendments require NGOs to submit comprehensive financial and operational records during registration or renewal.

• Financial Statements: NGOs must provide audited statements for the last three financial years, including balance sheets, receipts and payments, and income and expenditure statements. This ensures that the government has a clear picture of fund flow and utilisation over time.

• Activity-wise Expenditure: If the standard financial statements do not provide a breakdown of expenditures by project or activity, a Chartered Accountant must certify the amounts spent on each activity. This ensures accountability for how foreign contributions are deployed.

• Activity Reports: NGOs are now required to submit year-wise reports detailing activities undertaken over the last three years. This provides the government with context on the NGO’s operational scope.

• Affidavits: Each office bearer or director must submit an affidavit confirming compliance with FCRA provisions. This adds an additional layer of personal accountability.

2. Publication-Related Activities

NGOs engaged in publication or media-related activities face additional scrutiny:

• Undertaking by Chief Functionary: The head of the organization must confirm compliance with Section 3(1)(g) of FCRA, ensuring that funds are not used for prohibited political or media purposes.

• “Not a Newspaper” Certificate: If a publication is registered with the Registrar of Newspapers for India, the NGO must submit a certificate confirming it is not a newspaper under the law. This prevents misuse of foreign funds for media operations.

3. Previous FCRA Registrants

For NGOs whose registration has expired or been cancelled, additional compliance is now required:

• Affidavit on Fund Utilisation: NGOs must provide an affidavit detailing how foreign contributions were received and utilised after expiry or cancellation.

• Bank Statement Certification: Certified copies of designated and utilisation account statements from expiry/cancellation date to the present are now mandatory. This ensures transparency in post-expiry fund management.

4. Expenditure Thresholds

For NGOs with lower operational budgets:

• If the total expenditure on the organisation’s aims and objectives is less than ₹15 lakh in the last three years, an affidavit explaining capital investments is required.

• This measure ensures that even small NGOs provide clarity on fund usage.

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Integrating Renewal and Compliance: Practical Implications for NGOs

Together, the 4-month renewal directive and the 2025 amendments mean that NGOs must:

1. Plan well in advance: Start renewal preparations at least 5–6 months before expiry to gather audited financials, affidavits, and activity reports.

2. Maintain robust documentation: Maintain separate FCRA accounts, activity-wise expenditure records, and detailed project reports.

3. Engage professional support: Chartered Accountants or legal advisors should review compliance documents to avoid errors.

4. Ensure transparency: Regularly update disclosures on the NGO’s website to meet quarterly and annual reporting requirements.

Failure to comply can lead to halted projects, legal complications, and loss of donor confidence.

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Conclusion

The 2025 FCRA updates reflect the Indian government’s push for greater accountability, transparency, and operational discipline among NGOs receiving foreign contributions. Filing renewals four months in advance, maintaining meticulous documentation, and adhering to the 2025 amendments are no longer optional—they are essential for uninterrupted operations.

By proactively implementing these practices, NGOs not only comply with legal mandates but also enhance their credibility and trust with donors, stakeholders, and the communities they serve.

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📌 References:

• MHA Public Notice – 30 September 2025

• FCRA (Amendment) Rules, 2025 – 26 May 2025 Gazette

#FCRA #NGOCompliance #Transparency #CivilSociety #NGOs #IndiaPolicy #ForeignFunding

Supreme Court Rules Cash Transactions Above ₹20,000 Can Constitute “Legally Enforceable Debt” Under Section 138 NI Act

Supreme Court Rules Cash Transactions Above ₹20,000 Can Be “Legally Enforceable Debt” Under Section 138 NI Act

In a landmark judgment delivered on 25 September 2025, the Supreme Court in Sanjabij Tari v. Kishore S. Borcar (Criminal Appeal No. 1755/2010; 2025 INSC 1158) clarified that cash transactions exceeding ₹20,000 can also constitute a “legally enforceable debt or liability” under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).

This ruling overrules the Kerala High Court’s view that debts arising from cash loans beyond ₹20,000 (in violation of Section 269SS of the Income Tax Act) cannot attract the statutory presumptions under Sections 118 and 139 NI Act.

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Case Background

• The appellant (complainant) advanced a friendly loan of ₹6,00,000 to the accused.

• The cheque issued in repayment was dishonoured for insufficiency of funds.

• While the Trial Court and Sessions Court convicted the accused, the Bombay High Court at Goa acquitted him, holding that the complainant had failed to prove a legally enforceable debt.

• On appeal, the Supreme Court restored the conviction, setting aside the High Court’s view.

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What the Supreme Court Held

1. Presumptions under NI Act remain intact
   Once the cheque is admitted to be signed, statutory presumptions under Sections 118 and 139 NI Act arise — that the cheque was issued for consideration and in discharge of a legally enforceable debt. The burden lies on the accused to rebut these presumptions with credible evidence.

2. Section 269SS of Income Tax Act does not invalidate debt

   • Section 269SS prohibits accepting loans or deposits in cash above ₹20,000.

   • Breach of this section only attracts a penalty under Section 271D of the IT Act.

   • It does not render the transaction void or unenforceable.

   • Therefore, a debt arising out of such a cash transaction can still be the basis of a cheque under Section 138 NI Act.

3. Kerala High Court’s contrary ruling overruled
   The Court expressly overruled the Kerala High Court’s judgment in P.C. Hari v. Shine Varghese, which had held that cash loans beyond ₹20,000 would not qualify as “legally enforceable debt” under NI Act.

4. Financial capacity issue rejected
   The accused’s argument that the complainant lacked financial capacity to advance ₹6 lakh was rejected, as no rebuttal evidence was led. The Court clarified that requiring complainants to independently prove antecedent debt — without the accused discharging their rebuttal burden — is contrary to law.

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Directions for Speedy Trial of Cheque Bounce Cases

Recognising the huge backlog of Section 138 cases, the Court also issued new guidelines, to be implemented by all High Courts and District Courts by 1 November 2025:

• Flexible summons service: Permitting dasti (personal service), email, WhatsApp, and other electronic means.

• Digital payment for compounding: Allowing UPI/QR code-based payment facilities for quicker settlements.

• Complaint particulars: Requiring specific details in complaints to reduce delays.

• Encouraging early settlement: Courts to proactively suggest compounding at the first instance.

• Evening courts and realistic pecuniary limits: High Courts to consider structural measures for fast-tracking NI Act cases.

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Why This Matters

• For complainants: Provides stronger footing in cheque bounce prosecutions, ensuring that debts from cash transactions over ₹20,000 are not excluded from legal enforcement.

• For accused: Cannot escape liability merely by pointing to an Income Tax Act violation. Rebuttal must be based on substantive evidence.

• For courts: Offers clear guidance to reduce delay and harmonise interpretations across jurisdictions.

• For policy: Distinguishes between tax law penalties and the enforceability of commercial obligations under the NI Act.

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Conclusion

This ruling is a turning point in cheque bounce litigation. By decoupling Income Tax Act penalties from enforceability under Section 138 NI Act, the Supreme Court has strengthened the rights of payees while also pushing for faster disposal of cheque dishonour cases.

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Citation:
Sanjabij Tari v. Kishore S. Borcar, Criminal Appeal No. 1755/2010, Supreme Court of India, Judgment dated 25 September 2025, 2025 INSC 1158.
Full judgment available at: Supreme Court of India