Kerala Assembly urges Centre to withdraw proposed FCRA amendments

Thiruvananthapuram: The Kerala Assembly on Wednesday passed a resolution urging the Centre to withdraw the proposed amendments to the FCRA, saying the changes would adversely affect the functioning of voluntary and charitable organisations.

Moving the resolution, Chief Minister V D Satheesan said the provisions of the Foreign Contribution (Regulation) Amendment Bill, 2026, would have serious consequences for voluntary organisations, particularly in Kerala, working in the social, health, education and charity sectors.

In the resolution, he noted that registered voluntary organisations in the state have, for decades, supplemented government efforts by providing welfare, education, healthcare, medical assistance to the destitute, rehabilitation for persons with disabilities and disaster relief, particularly among marginalised sections of society.


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The resolution alleged that, while the amendments were projected as measures to ensure transparency, they would, in reality, undermine the autonomy of civil society organisations and restrict their democratic functioning.

The Assembly expressed concern that organisations would no longer be allowed to receive foreign contributions for broad public purposes and that their activities would instead be confined to 105 specified sectors grouped under five categories-social, educational, cultural, economic and religious.

It objected to the provision requiring organisations registered in one state to obtain fresh registration to operate in another state, saying it would create practical hurdles for voluntary work.

The resolution said the requirement that subsequent instalments of foreign funds would be released only after verification of the utilisation of the first instalment could delay the timely implementation of projects.

It criticised the provision imposing penalties of up to 30 per cent of the foreign contribution for violations, arguing that even minor technical lapses could jeopardise the financial stability of organisations with otherwise clean records.

The House objected to the requirement that office-bearers and persons associated with organisations disclose their personal social media accounts and websites, terming it an intrusion into citizens' privacy.

It opposed the provision requiring details, including summaries, of books, magazines, articles and other publications brought out by persons associated with the organisation during the previous year, saying it amounted to governmental control over the freedom of expression guaranteed under the Constitution.

The resolution criticised the expansion of the definition of "key functionary" to include directors, trustees and partners, saying it would expose a wider range of individuals to personal liability and stringent penal action even for technical violations, discouraging eminent persons and experts from associating with charitable organisations.

It expressed concern over provisions in the proposed Amendment Bill empowering the Centre to appoint a designated authority to take over, manage or even dispose of assets created using foreign contributions if an organisation's FCRA licence is cancelled, suspended or not renewed.

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The Assembly, through the resolution, said allowing the government to assume control over assets built over the years through an administrative order, without prior judicial approval or scrutiny, violated the principles of natural justice and the rule of law.

It criticised stricter restrictions on sub-granting of foreign funds and the operation of bank accounts, saying they would severely affect grassroots organisations engaged in public service.

While acknowledging the need to prevent illegal foreign funding, the resolution said the proposed changes would make the functioning of even transparent and credible charitable organisations practically impossible, preventing foreign assistance worth crores of rupees from reaching ordinary people and adversely affecting the state's social development indicators.

The House expressed concern over the inclusion of the term "proselytisation", saying the expression had not been clearly defined and could be misused to cancel the licences of organisations working among tribal and marginalised communities on allegations of attempting to alter their traditional beliefs and practices.

Stating that the proposed amendments violated Articles 19, 20 and 25 of the Constitution, were contrary to the federal structure, and would seriously undermine the functioning of voluntary organisations across the country, the Assembly urged the Centre to immediately withdraw both the Foreign Contribution (Regulation) Amendment Bill, 2026, and the Foreign Contribution (Regulation) Amendment Rules, 2026.

Following the presentation of the resolution, BJP MLA V Muraleedharan moved three amendments to it. Chief Minister Satheesan strongly opposed the amendments, saying they went against the very crux of the resolution.

The Speaker later put the resolution to vote, and it was passed by the House.