Foreign contribution bill amendment designed to kill the poor

By Cedric Prakash

Ahmedabad, June 19, 2026: The ruling regime continues in a systematic yet 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 Amendment is clearly designed to kill the poor!

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 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 & Automatic Cessation: Proposes fixed timelines for receipt and utilisation of foreign funds under prior permission, automatic cessation of registration upon expiry or non-renewal, and 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 has raised the hackles of many: intellectuals, academics, activists, NGO leaders and workers, human rights defenders, religious leaders and others from civil society.

Besides, the entire spectrum of political parties from the opposition, are 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.

In fact, a few days ago some, some of the mainstream Indian media, had a news item quoting US Senator James Risch, who heads the influential Senate Foreign Relations Committee saying, “India’s Foreign Contribution Regulation Act imposes onerous and opaque constraints on non-governmental organisations and groups that receive foreign funding, making their daily operations nearly impossible”. Concerns on the FCRA amendment have been expressed both by Republican and Democrat lawmakers.

There are several reasons for the immediate and unconditional withdrawal of the Bill; these include:

• The current FCRA rules and regulations (particularly since 2014) are already extremely stringent; with innumerable checks and balances;
• The Government has systematically 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; these include healthcare, education, rural and agricultural support, community development, women empowerment, childcare & protection, mitigating human trafficking, ecological enhancement, disaster response, relief and rehabilitation, livelihood, housing for the urban poor and research
• The ones who will suffer most will be the millions of beneficiaries, who are poor and marginalised, the victims of natural and other disasters, the differently–abled, dying destitute and other vulnerable sections of society, who today are given opportunities to live a more dignified and equitable life, based on Constitutional values and principles. Thanks to the stellar and selfless work done by the NGO sector, who are supported by foreign funds.
• The Government is saying and obviously plans to do: if there are FCRA violations done today- then all the assets bought/constructed previously with foreign funds, will be taken over. This is totally non-acceptable.
• Besides, it is mala fide and unconstitutional. Article 300A of the Indian Constitution, introduced by the 44th Amendment in 1978, states “No person shall be deprived of his property save by authority of law”. It moved the right to property from a fundamental right (Article 19(1) (f)) to a constitutional/legal right. The state can acquire private property, but only through a valid law, for a public purpose, and with just compensation. A clear ploy to take over properties/ assets, which belong to the NGO (including hospitals, schools, community centres, hostels). A provision blatantly targeting NGOs run by minorities.

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.

They accused the government of trying to tighten control over NGOs and to target minority institutions. They described the FCRA Bill as ‘draconian’ and as 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 that day. Despite putting it on hold, the Government has not withdrawn the Bill.

That pause is clearly a temporary measure, to allow tempers to cool and to (re)introduce it, during the Monsoon Session of Parliament which begins on 21 July.

The FCRA is a weapon in the hands of the ruling regime. They seem determined to stop charitable and humanitarian work, to shrink the little of democratic space remaining and to quell the Constitutional empowerment of people.

It is designed to kill the poor! We, the people of India, must take a stand NOW and demand the complete withdrawal of this draconian Bill, immediately!

Jesuit Father Cedric Prakash is a human rights, reconciliation & peace activist and writer. 
Contact: cedricprakash@gmail.com.