The Kerala High Court has quashed a central government decision refusing to renew the Foreign Contribution Regulation Act (FCRA) certificates of two non-governmental organizations accused of financing demonstrations against the Vizhinjam sea port project.
In an order issued on August 11, the court ruled that providing financial assistance to peaceful demonstrators does not constitute a diversion of foreign contributions or a violation of FCRA provisions, citing the constitutional guarantee protecting the right to protest.
Constitutional Protections and FCRA Interpretation
Central agencies had previously alleged that the two organizations redirected foreign contributions to support agitations opposing the port development. However, the High Court clarified that exercising a constitutionally protected right cannot be categorized as an undesirable purpose or an action contrary to the public interest under Section 12(4)(a)(ii) of the FCRA.
The ruling noted that statutory terms such as “undesirable purpose” cannot be defined by executive preference or political will. Peaceful demonstrations led by individuals who feel aggrieved or fear harm from a development project cannot be treated as unlawful merely because they encounter political disapproval.
Executive Stance vs Legal Rights
Addressing the central government’s position, the court emphasized that administrative or executive distaste for public dissent cannot transform the exercise of a constitutional right into an act against public interest. Consequently, even if the organizations provided financial support to protestors, such aid does not amount to an illegal diversion of funds under federal law.
