Kerala alleges disparity in Centre's foreign fund approval for Maharashtra

Thiruvananthapuram: The CPI(M)-led government in Kerala on Sunday slammed the Centre over its decision to permit Maharashtra to accept foreign funding for its Chief Minister's relief fund, alleging a disparity between states and a clear violation of federal principles.

State Finance Minister K N Balagopal highlighted the central government's denial of similar permission during the 2018 deluge, despite numerous offers of assistance to the state from abroad.

"It's not disasters and sufferings of people but politics that is the criterion for the Centre to take such decisions, which is unbecoming of administrators," he said while addressing reporters here.

The state finance minister's sharp reaction comes amidst reports that the Maharashtra Chief Minister's Relief Fund has been accorded a licence under the Foreign Contribution (Regulation) Act, 2010, thus making it eligible to receive foreign funding.

As per the law, all associations and NGOs receiving foreign contributions are required to be registered under the FCRA.

According to official sources, the Maharashtra Chief Minister's Relief Fund located at Mantralaya in Mumbai has been registered with the FCRA after it fulfilled the criteria.

Balagopal said Kerala has no objection to Maharashtra receiving foreign aid for relief, but there is no justification for denying the same approval to the southern state.

He also said that the Maharashtra government's perceived closeness to the ruling front at the Centre leads other states, including Kerala, to believe that this played a role in the decision.

The union government's stand is a "violation" of the country's federal principles and equal treatment to be guaranteed by the Centre to the states.

Balagopal warned that differentiating between states based on political considerations, even during calamities, would harm healthy relations between the union government and states.

"There should be equal justice in such matters. Everybody expects the rule of law and equity in such circumstances," the minister said and urged the Centre to treat all states in the country equally.

Denying Kerala permission to accept foreign funds while granting it to Maharashtra is unacceptable, he added.

According to the website of the Maharashtra chief minister's relief fund, it aims at providing immediate relief to the people in distress in Maharashtra as well as in the country.

The chief minister's relief fund provides financial assistance to people affected by major natural calamities like floods, droughts, fire accidents, etc.

It also provides financial assistance to economically weaker sections for treatment of major diseases.

An FCRA licence is a permit issued by the Ministry of Home Affairs that allows registered organisations to accept foreign funds for specific purposes.

These licences are crucial for the NGOs, trusts and other entities seeking to receive foreign funding for social, cultural, religious or educational activities.