What happened (Kerala High Court’s intervention in FCRA renewal refusals)
Kerala High Court quashed a Centre-issued decision refusing to renew Foreign Contribution (Regulation) Act (FCRA) certificates for two NGOs: Save A Family Plan and Kerala Social Service Forum. The Centre’s refusal was based on allegations that foreign donations received by these NGOs were used to fund protests against the Vizhinjam sea port project.
The High Court ordered the “competent authority” to re-examine the matter and pass fresh orders within three months. The High Court also emphasised that reasons for denial must be specified in every order, describing it as a key element of a sound judicial system.
Background and Centre’s position (why the Centre refused renewal)
The Centre argued that the right to receive foreign contributions is not a fundamental right. The Centre also argued that NGOs have an obligation to verify how foreign funds are used. According to the Centre, refusal to renew can be justified when national security could be affected by potential misuse.
In the Centre’s case, the Centre cited alleged FCRA violations connected to foreign donations, including alleged use of foreign funds for personal gain and alleged acceptance of funds to prejudice social harmony. The Centre’s reasoning also attempted to connect the NGOs with protest funding linked to the Vizhinjam sea port project.
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