By Matters India Reporter
NEW DELHI, October 14, 2023: The All India Christian Council has urged Parliament’s Joint Parliamentary Committee to withdraw the proposed Foreign Contribution Regulation Act (FCRA) Amendment Bill 2026, arguing that it would permit the state to take control of charitable assets without establishing wrongdoing and could jeopardize essential public services.
In a submission presented to the committee on October 7, the council said the bill would allow property created by legally registered Indian organizations to be vested in the government based on the foreign origin of funds used to build it, even when no violation has been proven.
The group contended that such provisions raise concerns under constitutional protections relating to equality, freedom of association and property rights.
The submission, titled “Safeguarding National Interest and Public Institutions under the FCRA Amendment Bill 2026,” argued that cancellation, non-renewal, surrender or expiry of an FCRA registration should not automatically result in the permanent diversion of charitable assets.
The council said the proposed legislation conflicts with India’s international commitments under the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, both of which India joined in 1979.
It argued that restrictions on civil society organizations should be proportionate and necessary, and that permanently vesting assets exceeds what is required to regulate foreign contributions.
The submission also pointed to concerns involving charitable trusts and societies. It noted that loss of FCRA registration does not dissolve an organization or remove its legal obligations, including debts, contracts and responsibilities to beneficiaries.
According to the council, the bill would take control of assets without adequately addressing those continuing obligations.
The organization further argued that many institutions are funded through a mix of foreign donations, domestic contributions, corporate social responsibility funds, grants and accumulated surpluses.
It said the proposed vesting mechanism does not clearly protect domestic contributions or donor intentions when assets are transferred.
Particular concern was raised over schools, hospitals, children’s homes and shelters that rely on their properties to provide services.
The council warned that vesting assets could disrupt salaries, educational programs, shelter operations and healthcare services while leaving institutions responsible for liabilities they can no longer effectively manage.
The submission highlighted children’s homes and shelters as especially vulnerable because many operate under separate state licensing requirements.
It said transferring control of property without addressing licensing arrangements could create conflicts with existing welfare laws and potentially place residents at risk.
As an alternative, the council called for reforms based on what it described as a proportionate and risk-based regulatory approach.
It recommended preserving charitable purposes by transferring assets to organizations with similar objectives rather than for a general public purpose and urged judicial review before any irreversible disposal of assets.
The council also asked the parliamentary committee to hear directly from affected institutions before making recommendations on the legislation, saying organizations that provide education, healthcare and social services would face the most immediate consequences from the proposed changes.