Peaceful protests not 'undesirable': Kerala HC quashes FCRA denial to NGOs

The Kerala High Court on Tuesday set aside a Central government order refusing to renew the Foreign Contribution Regulation Act (FCRA) certificates of two non-governmental organisations, ruling that authorities must specify reasons for such denial. The court directed the competent authorities to review the cases and pass fresh orders within three months, in accordance with its observations.

The petitioners, Save A Family Plan and Kerala Social Service Forum, had been denied renewal of their FCRA licences on the ground that they allegedly used foreign donations to fund protests against the Vizhinjam seaport project. The denial was based on an intelligence report from a Central security agency, reportedly without furnishing any reasons to the organisations.

Justice Bechu Kurian Thomas, who heard the matter, held that specifying reasons in every order is an “indispensable part of a sound judicial system.” The court observed that the attempt to link the NGOs to the funding of protests was “too far-fetched.” It noted that the intelligence report did not refer to any forceful demonstration, use of arms, or violence.

The court further held that a peaceful protest by aggrieved persons against such a project cannot be viewed as an undesirable purpose. Even if some financial support was provided for a peaceful protest, it would not be violative of FCRA regulations, the court said.

Examining the Central security agency’s report, the court found that it could not identify any sensitive material that needed to be withheld from the NGOs. It observed that protests are “common” whenever a new project is announced and could not see how such protests amounted to a national security issue.

The Central government had argued that the right to receive foreign contributions is not a fundamental right and that the petitioners were bound to verify how their funds were used. It contended that when national security is at stake and there is a possibility of foreign funds being used for undesirable purposes, the authorities are entitled to exercise discretion in refusing renewal. The court, however, did not accept this reasoning in the context of the present case.

In a separate relief, the court allowed Save A Family Plan to utilise the ₹16 crore it had received while its licence was in force. Both NGOs had been denied renewal citing alleged violations of FCRA, including using foreign funds for personal gain and accepting funds to prejudice social harmony. The court’s ruling sets aside the earlier refusal and requires a fresh decision within three months, with clear reasons.