Centre calls FCRA amendments India’s internal matter amid US criticism

The Ministry of External Affairs on Friday described the proposed amendments to the Foreign Contribution Regulation Act (FCRA) as an internal matter for India, three days after a US Congressman criticised the proposed changes and raised concerns over their possible impact on churches and religious charities.

FCRA registration is mandatory for non-profit organisations seeking to receive foreign contributions. One of the key provisions in the proposed legislation would allow the Union government to assume control of an organisation’s foreign-funded assets if its FCRA registration expires or is cancelled, Scroll.in reported.

On Tuesday, US Republican Congressman Riley Moore of West Virginia objected to the proposed amendments, alleging that the Indian Parliament was seeking powers that could enable government control over churches and religious charities. He referred to the long history of Christianity in India and argued that the proposed changes could amount to an attack on Christians and potentially affect relations between India and the United States.

The amendment Bill was introduced in Parliament in March during the Budget Session but has yet to be passed by either House.

Responding to the criticism on Friday, Ministry of External Affairs spokesperson Randhir Jaiswal said that legislative matters concerning India fall within the country’s internal affairs and that such decisions are made by Parliament. He also pointed out that several countries, including the US, have regulations governing the movement of foreign funds.

Under the proposed framework, the foreign funds and assets of an organisation whose FCRA registration has lapsed or been cancelled would initially be placed under the control of a government-appointed designated authority. If the organisation fails to restore its registration, the authority would gain permanent control over the assets.

The designated authority would have powers to use, transfer or dispose of the funds and assets for purposes classified as being in the public interest.

The provision is not limited to churches or religious institutions and would apply to all organisations covered by the FCRA. The proposed amendment also states that the religious character of a place of worship would be protected.

Opposition MPs have criticised the proposed legislation as dangerous and excessively restrictive, while civil society organisations have expressed concern that it could significantly increase government control over non-governmental organisations.

Government data presented in Parliament in December 2022 showed that more than 6,600 NGOs had lost their FCRA licences between 2016-17 and 2021-22.

In 2023, the government informed Parliament that 13,520 registered non-profit organisations had received foreign contributions exceeding Rs 55,700 crore between 2019-20 and 2021-22.