Kerala High Court: No FCRA Certificate Refusal for NGOs Over Vizhinjam Protest Funding

• The Kerala High Court quashed the Central government's refusal to renew FCRA registrations for two NGOs over Vizhinjam protest funding claims.
• The Court found no material evidence to support allegations of financial support for protests against the Vizhinjam Port project.
• The judgment clarified that supporting peaceful protests is not an 'undesirable purpose' under the FCRA, and the right to protest is constitutionally protected.
• The ruling sets a significant precedent for future FCRA certificate renewals and revocations, with implications for NGOs operating in India.

When the right to protest is constitutionally guaranteed, exercise of such right cannot be labelled as ‘an undesirable purpose’ or against public interest.

The Kerala High Court's recent judgment has significant implications for NGOs operating in India, particularly those involved in social activism. The case revolves around two NGOs, Kerala Social Service Forum and Save a Family Plan India, whose Foreign Contribution (Regulation) Act, 2010 (FCRA) registrations were refused renewal by the Central government. The government's decision was based on allegations that these organizations had financially supported protests against the Vizhinjam Port project. However, the Court found no material evidence to support these claims.

The Court's judgment is a crucial milestone in the interpretation of Section 12(4)(a)(vi) of the FCRA. This section prohibits the use of foreign funds for an 'undesirable purpose' or against public interest. However, the Court clarified that the term 'undesirable purpose' cannot be interpreted to mean undesirable to the government or its political will. In fact, the right to peacefully protest is constitutionally protected, and the exercise of this right cannot be labelled as 'an undesirable purpose.' The Court's ruling underscores the importance of distinguishing between legitimate dissent and unlawful activities.

The Kerala High Court's judgment sets a significant precedent for future FCRA certificate renewals and revocations. Lawyers will closely watch this case, as it may impact the government's ability to revoke registrations based on allegations of funding protests. The ruling also highlights the need for a nuanced understanding of the FCRA provisions and their application in real-world scenarios. As social activism continues to grow in India, this judgment serves as a reminder of the importance of protecting the right to peaceful protest while ensuring that foreign contributions are used for legitimate purposes.

Lawyers should watch for the precedent set by this judgment, which may impact future FCRA certificate renewals and the government's ability to revoke registrations based on allegations of funding protests.

Source: Original reporting via The Hindu