By Matters India Reporter
New Delhi, April 10, 2026 — The Catholic Association of Archdiocese of Delhi (CAAD) has submitted a memorandum to Indian President Droupadi Murmu raising concerns over the Foreign Contribution (Regulation) Amendment Bill, 2026, warning that the proposed changes could undermine charitable service and civil society freedoms in India.
The memorandum highlights India’s “long and proud tradition of voluntary and faith-based service,” noting that charitable institutions have historically complemented the State in education, healthcare, and social outreach.
CAAD argues that while regulation is necessary, the new provisions risk excessive control and unintended expropriation.
Concerns over asset vesting and renewal
The Bill introduces a new section for “deemed cessation” of FCRA registration when renewal applications are not filed, refused, or delayed. It also proposes a new chapter on vesting foreign contributions and assets in a designated authority.
Under Section 16A, “the foreign contribution and the assets created out of foreign contribution… shall, from the date of such cancellation, surrender or cessation, vest provisionally in the Designated authority.”
CAAD warns that this could disproportionately affect organizations whose renewals are denied.
“Each time the renewal is granted the Central Government is implicitly recognizing that no apparent violation has been done by the organization till that time,” the memorandum states. Yet, under the new law, assets lawfully created could still be seized if renewal is refused.
The association also criticized the lack of transparency in the renewal process, noting that “the deficiencies noticed by the department is not communicated to the association and the associations are not granted an opportunity to make representations.”
Constitutional and social implications
CAAD argues that the amendment raises serious constitutional concerns. It cites Article 300A, which protects the right to property, and warns that vesting assets without judicial determination violates principles of due process.
The memorandum also points to Articles 25 and 26, which safeguard religious freedom and denominational autonomy, cautioning that the law could interfere with the internal management of faith-based institutions.
Further, the expansion of liability to trustees and office bearers “introduces a presumption of culpability unless proven otherwise,” reversing the principle of innocence until proven guilty. CAAD fears this will discourage voluntary leadership in charitable organizations.
The memorandum stresses that the greatest impact will be felt by vulnerable communities. “It must be emphasized that when charitable institutions are constrained, the greatest impact is borne not by organizations but by the millions of beneficiaries who depend on them,” it states.
Call for wider consultation
In its appeal, CAAD urged the President to refer the Bill to a Parliamentary Standing Committee for broader consultation. It called for safeguards to ensure due process, judicial oversight, and protection of charitable and faith-based institutions.
The association also recommended the creation of an independent appellate authority to provide impartial adjudication.
“India’s strength lies in its pluralism, compassion, and spirit of service,” the memorandum concludes. “Legislative measures governing charitable activities must safeguard these values and enable, rather than hinder, the vital contribution of civil society.”
CAAD is a lay-led body representing the Catholic community in Delhi, known for its advocacy on religious freedom, charitable service, and civil society participation. It often speaks out on issues affecting the Church and its faithful, including government regulations and public events.