Protests by Opposition forces FCRA climbdown
The Union Government on Tuesday decided to put on hold the Foreign Contribution (Regulation) Amendment Bill, 2026, following strong protests by Opposition MPs inside the Parliament Complex and widespread concerns raised by political parties and civil society groups. The Bill, which was scheduled for discussion and possible passage in the Lok Sabha on Wednesday, has triggered a major political storm since its introduction on March 25.
The Bill seeks to amend the Foreign Contribution (Regulation) Act, 2010, which regulates the acceptance and use of foreign donations by individuals, associations, NGOs, trusts, and companies. It was introduced in the Lok Sabha by Minister of State for Home Affairs Nityanand Rai on March 25, 2026.
The most contentious proposal 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” (now expanded to include directors, partners, trustees, and anyone in effective control) would be required to provide full access to records and maintain assets under the authority’s supervision.
Aggrieved parties can appeal to the District Judge within 90 days. Other changes include requiring prior Central government approval before any investigation into FCRA offences by law enforcement or state agencies, and a reduction in the maximum imprisonment term for violations from five years to one year.
The government has maintained that the amendments address existing legal gaps in asset management, strengthen oversight, prevent misuse of foreign funds, and enhance transparency and national security. India receives nearly ?22,000 crores in foreign contributions annually through around 16,000 registered organisations.
Meanwhile, the Parliament witnessed a ruckus as opposition parties, including the Congress, Left parties, and Trinamool Congress, staged a visible protest on Wednesday at Makar Dwar in the Parliament premises, holding banners and demanding the immediate withdrawal of the Bill. They described the FCRA Bill as ‘draconian’ and an attempt to grant sweeping executive powers that could lead to arbitrary action.
Strident criticism has also come from church groups and minority organisations, particularly in Kerala, where the Assembly elections are due on April 9, 2026. The Kerala Catholic Bishops’ Council and the Catholic Bishops’ Conference of India termed the Bill “dangerous, undemocratic, unconstitutional and contrary to natural justice,” fearing it could target foreign-funded educational, medical, and welfare institutions run by Christian organisations.
Leaders such as Congress’ Manish Tiwari and KC Venugopal in the Lok Sabha, accused the government of excessive delegation of powers and pushing the legislation at a politically sensitive time. Kerala Chief Minister Pinarayi Vijayan (CPI-M) also urged Prime Minister Narendra Modi to withdraw the Bill.
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 accused the Opposition of misleading voters in Kerala for electoral gains. He said that though the Bill had been listed in Wednesday’s official agenda for the Lok Sabha, it was not being taken up for discussion on the day.
Despite putting it on hold, the Narendra Modi Government has not withdrawn the Bill outright. The pause is seen as a temporary measure to allow tempers to cool amid the ongoing Budget Session disruptions.
The development has come against the backdrop of repeated FCRA scrutiny in recent years, with the government having cancelled or suspended licences of several NGOs over alleged violations. The Bill’s fate now remains uncertain, with both sides gearing up for further debate once Parliament resumes normal proceedings.
