FCRA: Civil society is not an enemy

It is clear to anyone reading the proposed bill that the Central Government's new amendments to the Foreign Contribution (Regulation) Act (FCRA) are aimed at tightening control over NGOs in the country that receive foreign donations. It is also evident that the objective is to curb the social welfare activities carried out by minority communities through such organisations. However, when the bill was first introduced in Parliament on March 26, 2026, passing it was not expected to be easy. At the time, the opposition INDIA alliance remained a relatively strong force in Parliament. But political developments following the Assembly elections in West Bengal and Tamil Nadu have weakened the opposition alliance, and that shift has also been reflected in Parliament. Taking advantage of this, the Central Government is now moving to bring the bill up for discussion on Thursday. Against the backdrop of the Gen Z protests at Jantar Mantar and other developments, Union Home Minister Amit Shah, who was accused by the opposition of evading Parliament during the monsoon session to escape difficult questions, has now announced that he will personally be present in the Sansad Bhavan to lead the discussion on the FCRA Amendment Bill. This signals that the Central Government is in an all-out effort to push the legislation through. The first indication that the FCRA amendment would be introduced in Parliament came from Mizoram Chief Minister Lalduhoma, following his recent meeting with Amit Shah. Soon afterwards, a delegation from the Joint Action Forum on Minorities, comprising Christian Church leaders, including representatives from Kerala, who also met the Home Minister, confirmed the same. Both groups later told the media that Amit Shah had assured them the concerns they raised regarding the bill would be discussed by the Union Cabinet and that efforts would be made to address them. However, several assurances made by Amit Shah in recent months, including the promise to withdraw cases filed against protesters involved in the Gen Z agitation, have yet to be fulfilled.  Given this, it remains to be seen how seriously the Central Government will consider the concerns expressed by minority organisations, including the Kerala Catholic Bishops Council (KCBC).

The Central Government argues that the latest amendments to the Foreign Contribution (Regulation) Act (FCRA) are intended to enhance transparency. However, the opposition contends that the changes will instead grant the government greater authority over the functioning of NGOs, potentially undermining their operational independence. A look at the history of the FCRA and its successive amendments suggests that these concerns cannot be dismissed outright. The original Foreign Contribution (Regulation) Act was enacted in 1976 during the Emergency. Its stated objective was to prevent foreign powers from influencing India's political and public life through financial contributions. Later, in 2010, the UPA government introduced a new FCRA framework. It required organisations receiving foreign contributions to obtain registration and to maintain strict compliance regarding the utilisation of such funds. After 2014, the regulatory framework became significantly more stringent. In particular, the 2020 amendments brought major changes to the way NGOs operate by imposing tighter controls and increased scrutiny over receiving and managing foreign contributions. The latest amendment is a continuation of that process. Under the existing law, if an organisation's FCRA registration is cancelled by the government or voluntarily surrendered by the organisation, the assets created using foreign contributions may be placed under the control of a 'designated authority'. The new bill seeks to broaden the scope of this provision even further. In other words, an FCRA registration will be deemed to have ceased not only if it is cancelled, but also if it expires without being renewed, if the organisation fails to apply for renewal, or if its renewal application is rejected with the result that if the government decides not to renew an organisation's registration, the organisation would not only be forced to cease its activities but could also lose control over its assets.

In many cases, NGOs in India operate using a combination of domestic and foreign funding. For example, if an organisation builds a hospital, the land may be purchased using funds raised within the country, while the construction of the building may be financed through foreign contributions received under the FCRA. Under the proposed amendment, if the organisation's registration is cancelled, there are concerns that even assets acquired through domestic funding could come under government control simply because they are associated with an entity that received foreign contributions. In effect, the amendment goes beyond regulating foreign donations, it expands the government's authority over NGOs themselves, as well as over the communities those organisations represent. NGOs in India have traditionally played a vital role in delivering services to marginalised communities that the government is unable to reach, while also bringing the concerns of marginalised sections of society to the attention of the wider public. It is through the complementary roles of the state and civil society that a country becomes more democratic and inclusive. However, governments have often viewed criticism from NGOs with intolerance. Now, the proposed amendment goes a step further and this law is being misused as a weapon to target the country's minorities. Moreover, one must not forget that while civil society is being projected as an enemy, minorities are once again being hounded under a different label. Numerous NGOs led by minority communities are engaged in sectors such as education, healthcare, and social welfare. The proposed amendment threatens not only the functioning of these organisations but also their very existence. Therefore it is incumbent on democratic society to collectively oppose it.


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