The Kerala Assembly on Wednesday passed a resolution urging the Centre to immediately withdraw the Foreign Contribution (Regulation) Amendment Bill, 2026 and the Foreign Contribution (Regulation) Amendment Rules, 2026, despite opposition from the BJP.

Moved under Rule 118 of the Rules of Procedure and Conduct of Business, the resolution argued that the amendments would adversely affect the functioning of voluntary and charitable organisations working in the social, healthcare and education sectors, particularly in Kerala.

The resolution said registered voluntary organisations in the state had, for decades, supplemented government efforts by working for the welfare of marginalised communities, promoting education and healthcare, providing medical assistance to the destitute, rehabilitating persons with disabilities and carrying out disaster relief activities.

The resolution noted that while the amendments had been introduced in the name of ensuring transparency, they would undermine the autonomy of civil society organisations and restrict their democratic freedom to function.

The Assembly also objected to the provision replacing the existing framework for receiving foreign contributions with a system that restricts organisations to 105 specified fields under five categories — social, educational, cultural, economic and religious. It said the requirement for an organisation registered in one state to obtain fresh registration before operating in another state would create practical hurdles for voluntary work.

The resolution further criticised the provision requiring verification that the first instalment of foreign funding has been fully utilised before subsequent instalments are released, saying it would delay the completion of projects.

It also opposed the provision imposing penalties of up to 30% of the foreign contribution received for violations, arguing that even minor technical lapses could threaten the financial stability of otherwise well-functioning organisations.

The Assembly expressed concern over provisions requiring office-bearers and individuals associated with organisations to disclose their personal social media accounts and websites, calling it an intrusion into privacy. It also objected to the requirement that persons connected with the organisation or its management provide details, including summaries, of books, magazines or articles published during the previous year, saying it amounted to administrative control over the constitutional right to freedom of expression.

The resolution also criticised the expanded definition of "Key Functionary", which now includes directors, trustees and partners. It said the change would make them personally liable for legal violations and expose them to stringent penalties, discouraging eminent personalities and experts from participating in voluntary and charitable activities.

Referring to the Foreign Contribution (Regulation) Amendment Bill, 2026, the Assembly said that if an organisation's FCRA licence is cancelled, suspended or not renewed, the Centre could appoint a Designated Authority to take over assets created using foreign funds. It argued that the authority would have sweeping powers to seize, manage and sell such assets, and that allowing the government to take control of assets without prior court approval or judicial scrutiny violated the principles of natural justice and the rule of law.

The resolution also objected to stricter restrictions on sub-granting of foreign funds and the operation of bank accounts, saying they would affect grassroots organisations engaged in public service. While acknowledging the need to curb illegal foreign funding, it said the new provisions would make it practically impossible for transparently functioning charitable organisations to continue their work, preventing foreign assistance worth crores of rupees from reaching ordinary people and adversely affecting Kerala's social development indicators.

It further criticised the inclusion of the term "proselytisation" in the amended rules, saying the term had not been clearly defined and could be misused to cancel the licences of voluntary organisations by alleging attempts to alter the beliefs, customs or systems of worship of indigenous and tribal communities. According to the resolution, this could seriously affect charitable work in backward and tribal regions.

The resolution concluded that the proposed amendments violate Articles 19, 20 and 25 of the Constitution, were contrary to the principles of federalism and would place model voluntary service organisations across the country under severe strain. It urged the Central government to immediately withdraw both the Foreign Contribution (Regulation) Amendment Bill, 2026 and the Foreign Contribution (Regulation) Amendment Rules, 2026.