Kavita Srivastava, President of People’s Union for Civil Liberties (PUCL), and General Secretary V. Suresh, in a September 25 statement, expressed grave concerns regarding the Mutual Evaluation Report released by the Financial Action Task Force (FATF), Asia/Pacific Group on Money Laundering (APG), and Eurasian Group (EAG). The report deemed India “partially compliant” with Recommendation 8 addressing the risk of abuse in the non-profit sector related to anti-money laundering and counter-terrorist financing measures.
PUCL highlighted the ongoing misuse of laws such as Foreign Contribution Regulation Act (FCRA), Prevention of Money Laundering Act (PMLA), and Unlawful Activities (Prevention) Act (UAPA) against human rights defenders and civil society organizations. This misuse aims to stifle dissent, thereby jeopardizing essential human rights work and creating a chilling effect across society.
The organization demanded an immediate review of these laws by the government, urging adherence to the Supreme Court’s ruling regarding the law on sedition under Section 124(A) of Indian Penal Code, which had suspended its implementation. They also criticized Section 152 of the newly enacted BNS Act, which has broadened the criminalization of speech, making it easier to target individuals for allegedly endangering the country’s unity and integrity.
PUCL condemned the amendments to FCRA law, which they described as increasingly draconian. They expressed concern over targeting of civil society organizations on allegations of FCRA violations, including arbitrary refusal to renew licenses for receiving foreign funding. These actions, according to PUCL, not only hinder the operations of these organizations but also significantly impact vital human rights advocacy efforts.
The statement said FCRA is being wielded as a tool to silence civil society organizations, violating Article 19 of the Constitution, which guarantees freedom of speech, association, and assembly. The FCRA law, they argued, contradicts the International Covenant on Civil and Political Rights and UN Declaration on Human Rights Defenders.
PUCL recalled a 2016 joint communication from UN Special Rapporteurs urging the Indian government to repeal the FCRA, which they claimed obstructs civil society’s access to foreign funding and fails to meet international human rights standards.
PUCL reiterated its call for repeal of UAPA and reforms to PMLA, emphasizing the need to prevent the misuse of these laws against civil society organizations and activists while achieving FATF standards to effectively combat money laundering and terrorist financing.
The organization also expressed concern over the government’s actions against non-FCRA registered organizations, particularly voluntary groups and social movements, by forcibly closing their bank accounts through administrative measures like KYC procedures. These actions, they argued, violate fundamental rights to association and participation in democratic activities.
