Kerala HC Quashes FCRA Renewal Denial to 2 NGOs Linked to Vizhinjam Port Protests

 

The Kerala High Court has set aside the Central government's decision to deny the renewal of Foreign Contribution Regulation Act (FCRA) registration to two NGOs that had been linked to protests against the Vizhinjam seaport project.

In its August 11, 2026 ruling, the court directed the authorities to reconsider the FCRA renewal applications of Save A Family Plan and Kerala Social Service Forum and pass fresh orders within three months.

The court also stressed that authorities must provide clear and specific reasons if they decide to reject the applications again, holding that transparency in administrative decisions is an essential component of a fair process.

Centre's allegations over foreign funds

The Central government had opposed renewal of the NGOs' FCRA certificates, citing concerns over the alleged use of foreign contributions in connection with protests against the Vizhinjam port project.

The government argued that receiving foreign contributions is not a fundamental right and that organisations receiving such funds must ensure that the money is used strictly for permitted purposes.

It also maintained that authorities have the power to refuse FCRA renewal where there are concerns that foreign funds could be misused in ways that affect national security or public order.

The NGOs challenged the decision before the High Court.

Court questions link between NGOs and protests

Justice Bechu Kurian Thomas, who presided over the matter, questioned the basis of the government's reasoning and described the alleged connection between the NGOs' activities and funding of the protests as “too far-fetched.”

The court noted that the intelligence report relied upon by the authorities did not indicate instances of violence or coercive demonstrations.

The Bench also observed that peaceful protests against development projects cannot automatically be treated as undesirable activities. It further held that financial support for peaceful protests, by itself, does not amount to a violation of FCRA provisions.

The court examined the intelligence material placed before it and found no sensitive information that justified withholding it from the petitioners.

It noted that protests are a common feature of public responses to development projects and should not automatically be equated with activities posing a threat to national security.

Fresh decision ordered

The High Court has directed the competent authorities to reconsider the FCRA applications of both NGOs and issue fresh decisions within three months.

The court also emphasised that any future rejection must be supported by clear reasons, allowing the organisations to understand the basis of the decision.

The Central government had previously cited alleged FCRA violations, including claims that foreign contributions were used for personal gain and activities that could disrupt social harmony.

In a separate direction, the court permitted Save A Family Plan to utilise ₹16 crore in foreign contributions that it had received during the period when its FCRA registration was valid.

The ruling provides temporary relief to the two NGOs and places renewed focus on the standards authorities must follow when taking action against organisations receiving foreign contributions.

It also underscores the distinction between peaceful democratic protest and activities that may legitimately raise concerns under national security or foreign-funding laws.