In Brief
The Supreme Court examined constitutional challenges to the Foreign Contribution (Regulation) Act, 2010 and its Rules, brought by Indian Social Action Forum (INSAF), an NGO opposing globalization and communalism. INSAF contended that provisions permitting the Central Government to declare organizations as "political in nature" and bar them from foreign funding were vague and violated fundamental rights (Articles 14, 19, 21). The Court upheld the legislation, finding Section 5(1) sufficiently clear. However, it applied the doctrine of "reading down" to Rules 3(v) and 3(vi), interpreting "political interests" and "political action" narrowly: only organizations actively involved in party politics or directly supporting political parties fall within the ban. Social welfare organizations supporting public causes through legitimate protest cannot be excluded. The Court also held that organizations cannot invoke Article 19 (which protects citizens) without individual members as parties.
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