Kerala HC sets aside Centre's order refusing FCRA renewal to two NGOs over alleged Vizhinjam port protest funding

The Kerala High Court on August 11, 2026, annulled a Centre's decision to deny the Foreign Contribution Regulation Act (FCRA) certificates of two NGOs, Save A Family Plan and Kerala Social Service Forum, for allegedly misusing foreign donations to fuel protests against the Vizhinjam seaport project. The authorities had denied the certificates based on a Central security agency's intelligence report without providing any reasons.

The court directed the competent authorities to review and issue fresh orders within three months. It emphasized that the reason for denial should be specified in every order, stating it as "indispensable" for a robust judicial system. The Centre contended that the right to receive foreign contributions was not fundamental and that the NGOs were obligated to verify the use of their funds.

However, the court found the link between the NGOs and the alleged funding of protesters to be "too far-fetched." It also noted that the intelligence report did not refer to any violent demonstration or use of arms. The court held that a peaceful protest against a project could not be considered an undesirable purpose and would not violate FCRA regulations.

After examining the Central security agency's report, the court concluded that no sensitive material requiring withholding from the NGOs was identified. Both NGOs were denied renewal for violating FCRA Act provisions, including using foreign funds for personal gain and accepting funds that might compromise social harmony. Save A Family Plan was granted permission to utilize the ₹16 crore it had received while the license was active.