Kerala High Court overturns FCRA renewal denial for two NGOs

The Kerala High Court has overturned the central government's decision to deny the renewal of Foreign Contribution Regulation Act (FCRA) certificates to two NGOs. The NGOs had been accused by central agencies of using foreign funds to finance protests against the Vizhinjam sea port.

The court ruled that providing financial support to protesters does not constitute a diversion of foreign funds for an undesirable purpose or against public interest. The bench emphasized that the right to protest is constitutionally guaranteed and that “executive or administrative distaste” for dissent cannot be used to label such activities as illegal under the FCRA.

Furthermore, the court noted that there was no established financial trail directly linking the petitioner NGOs to the protesters. The ruling clarified that the term “undesirable purpose” within the FCRA must be rooted in legal prohibition or public injury rather than political disapproval.