Kerala Assembly Passes Resolution Against FCRA Repeal, Cites Federal Breach

The Kerala Legislative Assembly on Wednesday (July 1, 2026) passed a resolution urging the Union government to repeal recent amendments to the Foreign Contribution (Regulation) Act (FCRA) and Rules, asserting that the changes violate constitutional and federal principles.

Chief Minister V.D. Satheesan moved the resolution, which contended that the Foreign Contribution (Regulation) Amendment Bill, 2026, and the Foreign Contribution (Regulation) Amendment Rules, 2026, would place voluntary organisations in the country in a difficult position.

The resolution was passed with 111 members voting in favour and two against. The Opposition CPI(M)-led Left Democratic Front (LDF) supported the Congress-led United Democratic Front (UDF) government’s resolution. Amendments suggested by BJP member V. Muraleedharan were rejected on the grounds that they were inconsistent with the content and spirit of the resolution.

Mr. Satheesan stated that the FCRA Amendment Rules, 2026, notified by the Centre on June 22, 2026, would adversely impact voluntary and charitable organisations in the social, health, education and charity sectors, particularly in Kerala. According to the resolution, these registered organisations have for decades assisted the government in ensuring welfare for marginalised communities, and in areas such as education, healthcare, rehabilitation of the differently-abled and disaster management.

The resolution argued that the provisions in the FCRA Amendment Bill, 2026, introduced in the name of ensuring transparency, erode the autonomous character of these organisations and their democratic right to function. It noted that the amendments limit operational areas to 105 areas in five categories, require an organisation registered in one state to secure a fresh registration to operate in another state, and impose stringent penalties that create practical difficulties. Provisions related to 'key functionaries' and sub-granting of funds would hinder NGO operations and discourage participation, the resolution added.

Further, the resolution objected to a stipulation that allows the government to seize assets created by an organisation through foreign aid using a 'designated authority' without court approval if the FCRA licence is cancelled, suspended or not renewed. This, it said, violates natural justice and the rule of law.

The resolution also criticised the introduction of the term 'proselytisation' in the schedule related to religious activities, stating that it could be misused to cancel licences of organisations.

BJP member Muraleedharan proposed four amendments, one of which described the resolution as a “politically motivated” move by a state legislature against federal principles. These amendments were rejected by the Assembly.