Event Summary
In September 2025, the Supreme Court of India dismissed the Central Government of India’s plea challenging the Madras High Court’s directive to renew the Foreign Contribution (Regulation) Act (FCRA) registration of two Chennai-based NGOs. The Central Government argued that the renewal was denied due to violations of Section 7 of the FCRA, which prohibits transferring foreign contributions without prior approval. However, the courts found no evidence of misappropriation or misuse of funds by the NGOs, remarking that procedural lapses alone did not justify refusal. The Supreme Court rebuked the Central Government’s for complicating matters and urged compliance with the High Court order, emphasizing that NGOs doing social work should not face undue harassment. The ruling mandates compliance with the renewal order and reinforces procedural fairness in regulatory actions, there by reinforcing legal protections for NGOs, affirming that suspicion without proof of wrongdoing is insufficient cause for denying FCRA renewals.
In recent years and especially the past year, numerous NGOs have faced delays, denials, or cancellations of FCRA licenses, often based on procedural or technical grounds rather than proven misuse of funds. This has resulted in widespread criticism that the regulatory framework is being used to harass and curtail civil society activities under suspicion rather than evidence. The judiciary, through this ruling and others, has increasingly pushed back against the executive’s stringent approach by affirming safeguards for NGOs against arbitrary denial and emphasizing the need for evidence-based actions. The decision marks a rare intervention of the High Court to protect freedom of association with the last decision on a similar matter decided in favor of maintaining the organisation’s FCRA cancellation in 2022.