Indian Ambassador to the United States, Vinay Mohan Kwatra, has strongly defended the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, refuting allegations that the legislation aims to curtail foreign aid to civil society or target specific religious groups. Kwatra emphasized that the bill is designed to foster greater transparency, improve governance, and establish clearer rules for foreign contributions.
Addressing International Concerns
Ambassador Kwatra's remarks come in response to concerns raised by a US lawmaker, who suggested the amendments could allow the Indian government undue control over religious institutions and charitable organizations. Kwatra highlighted that the FCRA framework applies uniformly across all religions, communities, and ideologies in India, rejecting any notion of discriminatory intent.
He drew parallels with similar legislative measures in other democratic nations, including the US Foreign Agents Registration Act (FARA) and Foreign Account Tax Compliance Act (FATCA), as well as laws in Australia, Canada, the UK, and the European Union, asserting that India's approach aligns with international norms for regulating foreign funding.
Evolution of FCRA and Key Provisions
The Ambassador noted that the FCRA framework, originally enacted in 1976 and modernized in 2010, has seen subsequent enhancements in 2016, 2018, and 2020. He described the 2026 Bill and its accompanying rules as "the next step in the same direction," aiming for increased transparency and better oversight.
Kwatra clarified specific provisions, particularly regarding organizations with cancelled or surrendered registrations. He explained that under existing 2010 provisions, foreign contributions and assets derived from them already vest in a state government authority. The new bill proposes a designated authority to safeguard these assets, with a guarantee that unused funds and assets would be fully returned if an organization's registration is restored.
Concerning places of worship, Kwatra assured that their religious character would be protected. In cases where a cancelled association had created property linked to a place of worship, it would be transferred to another FCRA-registered association of the same faith, ensuring continuity of worship activities.
He also pointed out that out of over 3 million NGOs in India, only approximately 14,450 hold FCRA registration, indicating that the vast majority operate outside the Act's purview.
Opposition Voices
Despite the Ambassador's assurances, the proposed FCRA Bill faces significant opposition. Congress general secretary K.C. Venugopal stated that opposition parties would vehemently protest its introduction in Parliament, labeling it "unconstitutional and anti-people" and alleging it targets minorities and NGOs.
Mizoram Chief Minister Lalduhoma, alongside several Christian organizations including the Catholic Bishops’ Conference of India and the National Council of Churches in India, has urged the central government to refer the Bill to a Joint Parliamentary Committee (JPC) for further review. These groups have voiced concerns over provisions related to cessation, asset vesting, and the proposed regulatory authority, advocating for broader stakeholder consultation before the bill proceeds.