A court in New Delhi on Wednesday ordered authorities to unfreeze Greenpeace India's bank accounts, extending a lifeline to the activist group which had faced closure of its local operations.

The High Court said Greenpeace could also receive local donations into its two main accounts, handing the environmental group a victory in its ongoing battle with Prime Minister Narendra Modi's government.

"Our domestic accounts have been unblocked. This gives us the minimum resources to function and continue to protect India's environment," the group said on Twitter after the court ruling.

"We're enormously relieved that the court has given us this lifeline," said Greenpeace India executive director Samit Aich in a statement.

Greenpeace said, however, that the ruling was only an interim one, with further court hearings into its petition against the government's crackdown expected later this year.

The right-wing government last month withdrew the group's foreign funding licence, citing violations of rules by opening accounts for foreign donations without informing authorities.

Following the ban, Greenpeace said many donors in India were unable to deposit money into its local accounts, leading it to warn that it could go under within weeks.

The campaign group receives 70 percent of its funding from Indian donors living in India.

The move on Greenpeace came shortly before the US Ford Foundation was hit with similar restrictions, prompting the US ambassador to New Delhi to warn that the crackdown could have a "chilling effect" on civil society.

Greenpeace has accused the government of waging a "malicious campaign" against it. But Aich said on Wednesday he hoped the ruling by High Court Justice Rajiv Shakdher could mark "a fresh start" in their relationship.

Greenpeace has been at loggerheads with the government over claims of environmental damage caused by India's heavy reliance on coal and the impact of deforestation and nuclear projects.

Greenpeace campaigner Priya Pillai was prevented by immigration officials from leaving Delhi in January after the government placed her on a suspicious persons list.

According to Indian media, a secret report by the main intelligence agency recently warned that delays to key development projects being sought by Greenpeace and other activist groups could knock up to three percentage points off India's annual growth rate.
Source: AFP