The ruling NDA-regime continues in a most methodical and manipulative manner, with its vicious, anti-people agenda. The latest is its insensitive and draconian proposed changes to the FCRA. On 25 March, the Foreign Contribution (Regulation) Amendment Bill, 2026, was introduced in the Lok Sabha by Minister of State for Home Affairs Nityanand Rai. According to the Government, the Bill seeks to bridge legal gaps in the management of assets created through foreign funds and to streamline the accountability of NGO functionaries. Seemingly innocuous words, but when one goes through the provisions of the Bill, one realises that it is the death-knell for humanitarian and other good works, which largely benefit the poor, the marginalised and other vulnerable sections of Indian society.
The most contentious aspects in the Bill is the creation of a new ‘Designated Authority’ to be notified by the Central Government. This authority would have the power to take provisional or permanent control of foreign contributions and assets (including buildings, schools, hospitals, and other infrastructure created partly or wholly from foreign funds) in cases where an organisation’s FCRA registration is cancelled, surrendered, or deemed to have ceased and when renewal is not applied for, denied, or expires.
The authority would supervise, manage, or dispose of these assets. Proceeds from any sale could be credited to the Consolidated Fund of India and used for “public purposes,” including transfer to government departments or agencies. If the organisation’s registration is later renewed or restored, the unutilised funds and assets would be returned. Affected organisations and their “key functionaries” would be required to provide full access to records and maintain assets under the authority’s supervision.
Some of the other provisions of this Bill include:
- Expanded Definition of ‘Key Functionary’: The definition now includes directors, partners, trustees, karta of Hindu Undivided Family (HUF), office-bearers of societies/trusts/trade unions, and any person with control over management, making them personally liable for offences unless they prove lack of knowledge or due diligence.
- Prior Approval for Investigations: The Bill mandates that any law enforcement agency or State government must seek prior approval of the Central government before initiating investigation into FCRA-related complaints.
- Timelines and Automatic Cessation: The Bill proposes fixed timelines for receipt and utilisation of foreign funds under prior permission, automatic cessation of registration upon expiry or non-renewal, and clearer rules on asset handling during suspension.
- Reduced Imprisonment: The Bill proposes reducing the maximum imprisonment for FCRA offences from 5 years to 1 year, alongside rationalised penalties.
This Amendment Bill with its harsh provisions naturally raised the hackles of many across the board: intellectuals, academics, activists, NGO leaders and workers, human rights defenders and others from civil society. Besides, the entire spectrum of political parties from the opposition, were united in demanding that this FCRA Bill be scrapped in toto and immediately. Plenty has already been written (including editorials and op-eds) on the draconian provisions of the proposed bill, with important statements being issued from different sections of civil society. Representations, voicing legitimate concerns, have also been made to the Government.
There are several reasons being given for the immediate and unconditional withdrawal of the Bill; these include:
- The current FCRA rules and regulations (particularly since 2014) are already extremely stringent.
- The Government has already suspended, cancelled or not renewed the FCRA of several NGOs in the country – all of whom were doing yeoman service to the nation. Many of these belong to the minority communities
- The new provisions are a stranglehold on the significant work being done for the common good and for the betterment of society – through healthcare, education, rural and agricultural support, community development, ecological enhancement, disaster response, relief and rehabilitation, livelihood, housing for the urban poor, research, etc.
- The ones most to suffer will be the millions of beneficiaries who are mainly the poor and the marginalised, the victims of natural and other disasters, the differently abled, dying destitute and other vulnerable sections of society who are able to live a more dignified and equitable based on Constitutional values and principles. Thanks to the stellar and selfless work done by the NGO sector who are also supported by foreign funds.
- What is the Government trying to say and obviously do: that if there are FCRA violations done today, then all the assets bought/constructed previously with foreign funds will be taken over? This is clearly mala fide and unconstitutional. A clear ploy to take over properties/ assets, etc. which belong to the NGO (including hospitals, schools, community centres, hostels). A provision blatantly targets NGOs run by minorities.
Fortunately, on 1 April, Opposition members of Parliament staged a united protest at the Makar Dwar of Parliament, demanding the withdrawal of the Foreign Contribution (Regulation) Amendment Bill, 2026. Led by Congress and other parties, they accused the government of trying to tighten control over NGOs and to target minority institutions. They described the FCRA Bill as ‘draconian’ and an attempt to grant sweeping executive powers that could lead to arbitrary action.
The Lok Sabha had to be adjourned that day because the Opposition wanted the Bill to be withdrawn. Responding to the allegations hurled at the Treasury Benches, the Parliamentary Affairs Minister Kiren Rijiju defended the move, stating that the Bill was aimed at regulating foreign funds in the national interest and not targeting any religion or community. He finally said that the Bill would not be taken up for discussion on the day.
Despite putting it on hold, the Government has not withdrawn the Bill outright. The pause is seen as a temporary measure to allow tempers to cool and to take it up at a different time. In the context of the recent elections in Kerala, BJP leader P.C. George and his son Shaun strongly criticised the fact that some of the Church leaders had raked up the FCRA issue in the election campaign and asserted that the Central Government was determined to introduce the Amendments!
Given the fact that we the people of India are in the stranglehold of a fascist regime, the fact that the Bill is just kept temporarily on hold, may not be far from the truth!
[Fr. Cedric Prakash SJ is an internationally renowned human rights, reconciliation and peace activist and writer. He is the recipient of several International and National awards for his work. Contact: cedricprakash@gmail.com]