State assembly passes resolution against FCRA Amendment Bill

Thiruvananthapuram: State govt has passed a resolution in assembly under Rule 118 of Rules of Procedure and Conduct of Business, urging Union govt to withdraw Foreign Contribution (Regulation) (FCRA) Amendment Rules, 2026 and Foreign Contribution (Regulation) Amendment Bill, 2026, arguing that proposed changes would severely affect voluntary and charitable organisations across the country, particularly in the state.The resolution presented by chief minister V D Satheesan said provisions contained in FCRA Amendment Rules, 2026, issued by central govt on June 22, 2026, adversely affect smooth functioning of voluntary and charitable organisations working across the country, and especially in Kerala, in social, health, education and humanitarian sectors.“This House urges central govt to immediately withdraw the rules and bill as they violate Articles 19, 20 and 25 of Constitution, run counter to federal principles and place exemplary voluntary service organisations across the country in a state of crisis,” said the resolution.“For decades, registered voluntary organisations in the state have been providing substantial support to govt systems by serving in areas such as welfare of marginalised communities, education, healthcare, medical assistance for destitute, rehabilitation of disabled persons and disaster relief activities.”Stringent restrictions imposed on transfer of foreign funds (sub-granting) and management of bank accounts have affected the very survival of small grassroots collectives engaged in public service.

“While there is no dispute that unlawful funding must be prevented, the controls have been framed in a way that makes the work of transparent and genuinely charitable movements practically impossible. As a result of such harsh amendments, foreign assistance worth crores of rupees is failing to reach ordinary people. This, in turn, adversely affects state’s social development indicators.”Although these amendments to foreign contribution regulatory framework, along with the provisions in FCRA Amendment Bill, 2026, presented in Parliament, are claimed to ensure transparency, they in fact undermine autonomy of civil society organisations and restrict their democratic freedom to function, the resolution said.Instead of permitting foreign contributions for broad public purposes, the amendments confine organisational activities to 105 specified fields grouped under five categories: social, educational, cultural, economic and religious. Further, the requirement that an organisation registered in one state must obtain fresh registration to operate in another state is a condition that effectively obstructs voluntary work in practice.Objections to Union govt amendments are: the provision that subsequent instalments of foreign funding may be released only after verifying and being satisfied that the first instalment has been utilised creates delays; the clause imposing heavy penalties of up to 30% of the contribution received for rule violations reflects an approach that can jeopardise financial stability of well-functioning institutions; the requirement to mandatorily disclose the personal social media accounts and websites of individuals and office-bearers is intrusion into privacy; the rules require details, including summaries of content, of any books, journals, or media publications produced within the past year by persons associated with the institution or its management is akin to state control over freedom of expression; even a technical breach could result in personal punishment, which would discourage eminent persons and experts from entering the fields of social service and voluntary work.“FCRA Amendment Bill, 2026, also says that if an organisation’s FCRA licence is cancelled, suspended or not renewed, govt may appoint a designated authority to take over assets created using foreign funds. This authority is granted sweeping powers to seize, manage and sell assets of organisations without judicial approval or proper judicial scrutiny.”The inclusion, through the rule amendment, of the vague and undefined expression “proselytisation” creates room for widespread misuse to cancel licences of voluntary organisations by alleging that they are attempting to alter the beliefs, customs or modes of worship of local and tribal communities.

This would seriously harm charitable work in backward and tribal regions, the resolution said.BJP condemns resolutionBJP MLA V Muraleedharan said the FCRA resolution is contrary to federal principles.Speaking to reporters, he said that legislations brought forward in national interest should not be opposed merely with an eye on vote banks.He strongly condemned the use of legislative assembly to mislead people.“Sole aim of FCRA amendment is to ensure transparency in utilisation of foreign funds. It must be ensured that these funds are not utilised for anti-national activities or against the interests of Indian citizens. The amendment becomes a problem only for those who use foreign funds for religious conversion. States have no right to propose amendments to laws passed by Parliament.”