The Supreme Court said that receiving foreign donations is "a reflection on the constitutional morality of the nation, as a whole, being incapable of looking after its own needs and problems" and said charitable associations may instead focus on donors within the country to obviate influence of foreign countries owing to foreign contribution.

A bench of Justice A.M. Khanwilkar and comprising Justices Dinesh Maheshwari and C.T. Ravikumar said the theory of possibility of national polity being influenced by foreign contribution is globally recognised. "For, foreign contribution can have material impact in the matter of socioeconomic structure and polity of the country. The foreign aid can create presence of a foreign contributor and influence the policies of the country," it said.