Amendments to the Foreign Contribution (Regulation) Act (FCRA)
The Centre is seeking to impose restrictions on foreign contributions to individuals and organizations in India, using a selective and non-transparent approach.
Proposed Amendments
- New amendments to the FCRA, introduced in the Lok Sabha on March 25, 2026, aim to create a statutory framework for a "designated authority" to seize and manage assets of entities that lose their FCRA license.
- The amendments are temporarily stalled due to protests but have not been abandoned.
- Assets built using foreign funds, such as schools and hospitals, could be automatically seized upon FCRA status discontinuation, without judicial review.
Concerns and Criticism
- The move is criticized for being potentially unfair and opportunistic, allowing the Centre to benefit from its own decisions to withdraw FCRA permissions.
- Christian groups express concern as they are significant recipients of foreign contributions for health and educational institutions.
- State policies continue to seek foreign funds in various sectors, raising questions about the selective application of FCRA restrictions.
Historical Context
- The FCRA was first enacted in 1976, reenacted in 2010 during the UPA regime, and amended in 2020 under Narendra Modi, with progressively stricter regulations on foreign funds.
Regulatory Issues
- The current regulatory regime is criticized for lacking transparency and even-handedness.
- Parliamentary questions regarding FCRA cancellations and data have been disallowed since 2024, leading to assumptions about selective permission for foreign funds.
- The proposed legislation is seen as violating principles of natural justice, with assets legally built with foreign funds unfairly subject to seizure.
Call for Rethink
The Centre is urged to reconsider its approach, ensuring that regulations on foreign contributions are fair, transparent, and reflective of ground realities.
