- The Bharatiya Janata Party-led government's over-regulation of civil society is evident in the Foreign Contribution (Regulation) Amendment Bill, 2026, which was initially pushed through Parliament but after protests was referred to a Joint Parliamentary Committee (JPC).
- The new Bill proposes to take over assets built with foreign money even on the mere lapse of a certificate, and a donee organisation can lose registration not only on cancellation but also when renewal is refused, not applied for, or not granted before the old certificate runs out.
- Once registration lapses, the organisation's foreign funds and assets built with them automatically pass to a government-designated authority, and the property returns only if the organisation re-registers within a period the government has yet to specify, failing which it is lost for good.
- A building put up only partly with foreign money will be taken over in full, and the organisation must apply to get back the share not paid for with foreign money.
- The Bill allows appeal to a district judge only against what the authority does with the property later; the refusal to renew cannot be appealed, and the organisation is not entitled to be heard before the refusal.
- Because the authority acts on the Centre's instructions, the Centre can use opaque reasons to withdraw a licence, take over property, and direct the body holding it, alarming minority religious institutions, especially Christian organisations running schools, colleges, and hospitals.
- Protests against the Bill include marches in Aizawl, objections from Kerala organisations, a letter from Nagaland's Chief Minister, and a unanimous resolution by the Tamil Nadu Assembly; the Home Minister's assurance that the Bill will not apply retrospectively is contradicted by the Bill's text, as a hospital built decades ago can be taken over if a certificate lapses.
The FCRA Amendment Bill, 2026, recently referred to a Joint Parliamentary Committee after significant protests, aims to tighten regulations on civil society organizations by allowing the government to seize assets built with foreign funds upon the mere lapse of a registration certificate.
The bill proposes that a donee organization can lose its registration not only when the government cancels it but also if renewal is refused or not applied for before the old certificate expires. As soon as this happens, the organization’s foreign funds and what was built with them will pass to a government-designated authority automatically.
Alarmingly, even buildings partially funded by foreign contributions can be fully taken over, with the organization needing to apply to reclaim the share not funded by foreign money. Minority institutions, particularly Christian organizations, have expressed deep concern, as they operate numerous schools, colleges, and hospitals reliant on foreign donations.
Protests have erupted across the country, with hundreds marching in Aizawl, Mizoram, and organizations in Kerala voicing objections. Nagaland’s Chief Minister has called for a parliamentary review, while the Tamil Nadu Assembly unanimously resolved for the Centre to withdraw the bill.
Despite assurances from the Home Minister that the bill will not apply retrospectively, the text suggests otherwise, raising fears that even long-established institutions could lose their assets due to lapsed certificates.
“The Bill allows appeal only against later property actions, not renewal refusal, and organisations are not entitled to a hearing before refusal. Protests include marches in Aizawl, objections from Kerala, a letter from Nagaland's Chief Minister, and a unanimous Tamil Nadu Assembly resolution.”
