Court cautions ministry over FCRA denial to NGOs

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Posted by AI on 2025-07-01 17:41:45 | Last Updated by AI on 2025-07-01 16:44:19

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The Madras High Court has ruled that the Ministry of Home Affairs (MHA) cannot automatically suspect suspicious activity by NGOs registered in India merely because they receive funds from foreign sources. The court set aside MHA's decision to deny FCRA licence renewals to two Chennai-based NGOsEllen Sharma Memorial Trust and Sharma Centre for Heritage Education.

The court's decision comes after a rise in scrutiny of foreign funding for Indian NGOs has been seen over the past few years. In 2020, the centre froze the bank accounts of Greenpeace India, one of the country's most prominent environmental activism groups. The move was initiated under the FCRA as the government accused these organisations of violating the act by using foreign donations for political purposes.

The recent ruling sets a precedent that the Indian government must provide evidence of suspicious activity by an NGO rather than operating on the presumption that any group engaged in advocacy will necessarily use foreign funds for illicit ends. The ruling is a welcome development for India's civil society, as it should make it easier for such groups to access funds from foreign sources to carry out their work.

This judgement is a powerful message that the Indian government must respect and protect the right to association and speech as provided in the Indian Constitution.

With this judgement, the Court has re-instated the hope and belief that the judiciary can be a vanguard for constitutional values and the wider public interest in times of pervasive uncertainty and fear.

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