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Legal Matters | Why SC judgment on NGO funding is a half-hearted assertion of rights

The Supreme Court did not weigh on the right to receive foreign funding, but merely held that an organisation that is politically connected cannot be arbitrarily designated as a political organisation

May 10, 2020 / 12:26 IST
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The right to protest, the legitimacy of protests as a democratic tool, as well as the funding of protests have all been subjects of vociferous debate over the last few months. Recently, the Supreme Court, in an unrelated (and rather old) case, pronounced a judgment that should give much-needed comfort to democratic protestors merely fighting for their, or their community’s, rights.

The Petition by Indian Social Action Forum, a Delhi-based NGO, challenged the provisions of the Foreign Contributions (Regulation) Act, 2010 that banned organisations of political nature from receiving funds from abroad. This included organisations of farm workers, students, etc, which are not directly political, but whose objectives aim to advance political interests, or organisations which habitually engages in or employ common methods of political action, such as ‘bandh’ or ‘hartal’ for instance. This, it was argued, directly contradicts Article 19(1)(c) which guarantees the right to form associations or unions as a Fundamental Right (Admittedly, this does not extend to a right to receive foreign funds).

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The organisations that were targeted under these provisions were mostly grassroots organisations such as those protesting the Kudankulam nuclear power project, as well as other activist organisations such as Greenpeace.

The Supreme Court did not weigh on whether a Fundamental Right was being violated, but effectively read down the provisions to hold that any organisation which supports the cause of a group of citizens agitating for rights without a political goal or objective cannot be penalised as an organisation of political nature. The court also made it clear that such exemptions will not apply to organisations that are used for channelling foreign funds by political parties.