Kerala Assembly passes resolution urging Centre to repeal amendments to FCRA rules

Published 1 July 2026 · politics

The Kerala Legislative Assembly on Wednesday (July 1, 2026) passed a resolution urging the Union government to repeal the amendments to the Foreign Contribution (Regulation)

The Kerala Legislative Assembly on Wednesday (July 1, 2026) passed a resolution urging the Union government to repeal the amendments to the Foreign Contribution (Regulation) Act and Rules, terming them “a breach of Constitutional provisions and federal principles.” Chief Minister V.D. Satheesan moved the resolution which stated that the Foreign Contribution (Regulation) Amendment Bill, 2026, and the Foreign Contribution (Regulation) Amendment Rules, 2026, would plunge voluntary organisations functioning in the country into a crisis. The resolution was later put to a vote and passed in the House, with 111 members voting in favour and two against. The Opposition CPI(M)-led Left Democratic Front (LDF) supported the Congress-led UDF government’s resolution. The amendments suggested by BJP member V.

Muraleedharan were rejected on the grounds that they went against the content and spirit of the resolution. Satheesan said the Foreign Contribution (Regulation) Amendment Rules, 2026, notified by the Centre on June 22, 2026, adversely impacts voluntary and charitable organisations functioning in the social, health, education and charity sectors of the country, especially Kerala. For decades, these registered organisations have aided the government machinery in ensuring the welfare of marginalised communities and offering support in the areas of education, healthcare, rehabilitation of the differently-abled and disaster management, the resolution said. The provisions in the Foreign Contribution (Regulation) Amendment Bill, 2026, in the name of ensuring transparency, erase the autonomous character of these organisations and their democratic right to function, the resolution said.

The amendments limit the operational areas of the organisations to 105 areas in five categories. Besides, an organisation that has registration in one State is required to secure a fresh one if it is to operate in another State. The rules impose stringent penalties and pose practical difficulties for voluntary and non-governmental organisations. The stringent provisions such as those concerning ‘key functionaries,’ and sub-granting of funds would hinder the functioning of NGOs and also discourage individuals and organisations from participating in the activities of NGOs, the resolution said. Further, the stipulation that the government can seize assets created by an organisation through foreign aid using a ‘designated authority,’ without the approval of the court or a judicial examination, in the event of the FCRA licence being cancelled, suspended or not renewed is a violation of natural justice and contrary to the basic concepts of rule of law, the resolution said.