Mumbai: In a precedent-setting move, the Central Government has granted approval to the Maharashtra Chief Minister’s Relief Fund to receive donations from foreign sources under the Foreign Contribution Regulation Act (FCRA), 2010. This permission allows Maharashtra to accept overseas contributions for supporting individuals affected by natural disasters, serious accidents, communal unrest, terrorist attacks, and those requiring medical or educational help.
This decision, however, has reignited memories of a starkly different stance taken by the Centre in 2018, when Kerala was battling one of the worst floods in its history. Despite a generous offer of ₹700 crore in aid from the United Arab Emirates and pledges from other nations like Qatar, Maldives, and Thailand, the Centre refused to allow Kerala to accept the foreign donations. The devastating deluge had claimed over 200 lives and left the state with damages exceeding ₹20,000 crore. Even the plea to declare the event a national disaster was turned down by the central government.
Traditionally, Chief Minister’s Relief Funds rely solely on domestic contributions. However, to legally accept funds from international sources, FCRA registration is mandatory. Maharashtra's approval marks the first instance of such a state-level fund being granted this special status.
Meanwhile, the PM CARES Fund—set up in March 2020 in response to the COVID-19 crisis—was notably exempted from FCRA requirements and permitted to receive foreign donations through a designated account. This exemption stirred political and legal debate at the time, particularly around transparency and accountability.
The FCRA, which is administered by the Ministry of Home Affairs, serves to regulate foreign contributions and ensure that such inflows do not compromise national interests or internal security. The Act, first introduced in 1976 and restructured in 2010 with further amendments in 2020, mandates that NGOs and other associations must be registered to receive foreign contributions for social, educational, cultural, religious, or economic purposes.
The Centre’s green light for Maharashtra has drawn mixed reactions, especially from those in Kerala who still view the 2018 refusal as a political and humanitarian slight. While Maharashtra now becomes a model for possible future permissions, the disparity in treatment continues to spark questions about policy consistency and equitable support in times of state-level crises.