The Kerala High Court has restored the foreign funding licence of two non-governmental organisations, Kerala Social Service Forum and Save a Family Plan India, after setting aside a Union government order that denied their renewal under the Foreign Contribution Regulation Act (FCRA). The court ruled that the government's refusal to renew their FCRA registrations was arbitrary and lacked legal justification. The decision came after the two NGOs challenged the government's stance, which cited their alleged involvement in funding protests against the Adani port project in Vizhinjam. The dispute began in 2022 when a group of fisherfolk protested against the Rs 7,500-crore Adani port project, alleging it would lead to coastal erosion and harm their livelihoods. Protests turned violent on November 26, 2022, when demonstrators blocked Adani Group from resuming construction at the site, which had been halted for four months. Construction later resumed following the Kerala High Court's intervention. The Union government claimed that both NGOs had used their foreign funds to support these protests, thereby violating FCRA provisions. Justice Bechu Kurian Thomas, delivering the judgment, stated that the government's disapproval of dissent could not justify denying the NGOs' right to protest, which is constitutionally protected. He emphasized that providing financial support to protesters does not equate to using foreign funds for an undesirable purpose or against public interest. The court also pointed out that the government had failed to provide specific reasons for rejecting the NGOs' applications, calling such actions arbitrary and unlawful. The case highlights broader tensions around the regulation of foreign funding for NGOs in India. Earlier this year, the Lok Sabha referred the 2026 Foreign Contribution Regulation Amendment Bill to a joint parliamentary committee for detailed examination. The proposed amendment allows the Union government to take control of an NGO's foreign funds and assets if its FCRA registration lapses or is revoked. The bill was introduced in March during the Budget Session amid opposition concerns over granting excessive power to the executive without sufficient checks and balances. Protests against the amendment have emerged from various quarters, including a large demonstration by a collective of churches in Mizoram’s Aizawl. Protesters argued that the bill would negatively impact religious minorities, churches, and NGOs, potentially undermining constitutional protections. Union Parliamentary Affairs Minister Kiren Rijiju urged the Opposition to raise their concerns before the committee, while Union Minister of State for Home Nityanand Rai moved the motion to refer the bill to the committee. The proposed committee comprises 31 members, with 21 from the Lok Sabha and 10 from the Rajya Sabha. It is tasked with submitting its findings to the Lok Sabha by the end of the first week of the Winter Session. Under the new framework, foreign funds and assets would temporarily belong to a government-appointed authority. If an NGO fails to restore its FCRA status, this control becomes permanent, allowing the authority to utilise these resources for public purposes while preserving the religious nature of places of worship. Critics, including civil society groups and some international figures, argue that the proposed changes would increase state oversight over NGOs. Between 2016-’17 and 2021-’22, over 6,600 NGOs lost their FCRA licences, according to data shared by the government in December 2022. Additionally, 13,520 registered non-profit organisations received more than Rs 55,700 crore in foreign contributions between 2019-’20 and 2021-’22. US Congressman Riley Moore recently expressed concerns about the proposed amendments, labelling them a "clear attack against Christians" and warning of potential strain on Indo-US relations. The Ministry of External Affairs dismissed these concerns, stating that legislative matters are internal and that other nations, including the United States, regulate foreign fund flows. The Kerala High Court's ruling underscores the ongoing debate over balancing national interests with the rights of NGOs to operate freely and engage in peaceful dissent. The outcome of the parliamentary committee's review of the amendment bill will likely shape the future regulatory landscape for foreign-funded NGOs in India.
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