FCRA curbs meant to insulate democratic polity from foreign influence: SC

Bench says intervention by lawmakers was intended to arrest the high volume of inflow of foreign funds

The Parliament has to periodically intervene to curb the “increasing influence” of foreign funds on the polity of the nation, the Supreme Court said on Friday in a judgment.

The court upheld the enactment of the Foreign Contribution (Regulation) Act of 2020, which introduced restrictions in the receipt and distribution of foreign donations, as constitutionally valid.

The apex court said the intervention by the lawmakers was intended to arrest the high volume of inflow of foreign funds and uphold democratic values.

The Bench led by Justice A.M. Khanwilkar agreed with the government’s argument that the amendments to prevent democratic polity, public institutions and “individuals working in the national democratic space from being unduly influenced with the aid of foreign contribution or foreign hospitality received from foreign source” was reasonable.

The law was meant to insulate democratic polity from foreign influence. For this, a nation could even prohibit foreign contributions completely. “The theory of possibility of national polity being influenced by foreign contribution is globally recognised,” Justice Khanwilkar noted.