Kerala Assembly Passes Resolution Urging Repeal of Foreign Contribution Regulation Amendments

The Kerala Legislative Assembly on Wednesday (July 1) passed a resolution urging the Union government to repeal the Foreign Contribution (Regulation) Amendment Bill, 2026, and the Foreign Contribution (Regulation) Amendment Rules, 2026. The resolution passed with 111 members voting in favour and two against. The Congress-led UDF government moved the resolution, and the CPI(M)-led Left Democratic Front (LDF) supported it. Amendments proposed by BJP member V. Muraleedharan were rejected by the House. Chief Minister V.D. Satheesan, who moved the resolution, said the Foreign Contribution (Regulation) Amendment Rules , 2026, notified by the Centre on June 22, would create serious problems for voluntary and charitable organisations working across the country, especially in Kerala. The resolution said these organisations have, for decades, supported the government in areas such as education, healthcare, disaster management, rehabilitation of persons with disabilities, and welfare of marginalised communities. It stated that the new provisions, introduced in the name of improving transparency, take away the autonomy of these organisations and affect their democratic right to function. The resolution said the amendments restrict the operational areas of organisations to 105 areas under five categories. It also pointed out that an organisation registered in one state would have to obtain fresh registration to operate in another state. According to the resolution, the new rules impose stricter penalties and create practical challenges for voluntary organisations. It added that provisions related to “key functionaries” and restrictions on sub-granting of foreign funds could make it harder for NGOs to function and discourage people and organisations from participating in their activities. BJP legislator V. Muraleedharan proposed four amendments to the resolution. One of them described the Kerala Assembly’s move to oppose a Bill passed by Parliament as a “politically motivated” step that went against federal principles. The Assembly rejected all four amendments. The resolution also criticised a provision allowing the government to seize assets created using foreign contributions through a “designated authority” if an organisation’s FCRA licence is cancelled, suspended or not renewed. It said this could happen without court approval or judicial scrutiny, calling it “a violation of natural justice and contrary to the basic concepts of rule of law.” The resolution also objected to including the term “proselytisation” in the schedule dealing with religious activities. It said the provision could be misused to cancel organisations’ licences.