Supreme Court Backs Government’s Crackdown on Foreign Funding for NGOs
The Union Home Ministry’s latest amendments to the Foreign Contribution (Regulation) Act, 2026, impose stricter limits on non-governmental organisations receiving foreign donations. These rules, notified on June 22, require NGOs to specify the exact purpose and states where funds will be used, barring activities like proselytisation and restricting geographic scope.
The government’s authority to control foreign contributions has been repeatedly upheld by the Supreme Court. In April 2022, a three-judge bench in Noel Harper vs Union of India ruled that “no one can be heard to claim a vested right to accept foreign donation, much less an absolute right.” The court also expressed concern that seeking foreign funds suggests the nation cannot support itself.
Earlier, in March 2020, the Supreme Court in Indian Social Action Forum (INSAF) vs Union of India agreed with the Centre that regulating foreign contributions protects national interest. However, it called for a balance between the law’s objectives and the rights of voluntary organisations to access foreign funds. The court clarified that only groups involved in active politics are barred from receiving such funds.
The government has argued in court that the FCRA and its amendments are meant to regulate the manner of doing business with foreign contributions, not to stop charitable work. It contends that the rules do not violate fundamental rights under Article 19(1)(c) (freedom to form associations) or Article 19(1)(g) (freedom to practise any profession). Instead, these are subject to reasonable restrictions under Articles 19(4) and 19(6) for reasons of public order, morality, sovereignty, and public interest.
So far, both the government and the apex court have affirmed that no absolute right exists to receive foreign funds. The regulatory framework continues to be a contentious issue between civil society and the state, with the balance tilted towards stricter oversight in the name of national interest.
