Catholic leaders in India decry new FCRA amendment granting government greater control over assets of foreign-funded charities.
Newsroom (24/03/2026 Gaudium Press) Prominent Catholic figures in India have voiced alarm over the federal government’s proposed amendment to the Foreign Contribution (Regulation) Act (FCRA), which they warn could paralyze charitable organizations—many of them Christian-run—that serve the poor and marginalized.
Approved by the Union Cabinet on March 18, the Foreign Contribution (Regulation) Amendment Bill seeks to expand the government’s authority over the channeling and management of foreign funding for non-governmental organizations. Officials say the measure will reinforce transparency, accountability, and legal certainty in the use of such funds.
Expanded Powers and “Deemed Cessation”
The proposed law introduces a statutory mechanism that would allow government agencies to take control of assets created through foreign contributions if an organization’s registration under FCRA is suspended, canceled, surrendered, or simply not renewed.
A new Section 14B adds a clause for “deemed cessation” — meaning that once an organization’s registration expires or its renewal is denied, the government can assume control of its assets and property. In effect, this provision could render thousands of aid organizations powerless overnight.
The bill also sets strict timelines for receiving and using foreign contributions, a move that critics say could further complicate operations for social and religious charities.
Church Voices Raise the Alarm
“This will tremendously affect Church-based NGOs and also those run by other minorities,” said Father Cedric Prakash, a Jesuit human rights activist based in Gujarat. “The assets bought with foreign funds are all in danger. Once this amendment passes, the government can easily take control of land, buildings, and funds.”
Father Prakash characterized the move as a “blatant weaponization of law,” arguing that the state is shifting from oversight to outright control of civil society. “The poor are going to be the biggest losers,” he warned, emphasizing the risk to organizations that provide education, health care, and humanitarian aid in impoverished regions.
Threat to Freedom of Association
Echoing those fears, Sister Mary Scaria, a Delhi-based lawyer and member of the Sisters of Charity of Jesus and Mary, said the amendment poses a serious challenge to the independence of civil society institutions. “It will limit access to foreign funds and restrict the freedom of association,” she said. “The poor or the disadvantaged will be further pushed into a corner.”
A senior Church leader, who requested anonymity, suggested that the government’s deeper goal is ideological. “It looks as if the authorities want to ensure that only those groups aligned with its Hindu nationalist narrative can access foreign funding,” he alleged.
A Pattern of Control
Since Prime Minister Narendra Modi came to power in 2014, thousands of NGOs have found themselves stripped of FCRA licenses. Government data show that the licenses of 20,702 organizations have been revoked over the past decade, leaving just 16,122 groups authorized to receive foreign funds as of early 2026.
Critics contend that the government’s increasingly restrictive stance reflects a broader pattern of suppressing dissent and weakening institutions that advocate for marginalized communities. “Civil society must be free to serve,” said Father Prakash. “If the government takes over that role, compassion becomes conditional—and justice becomes political.”
- Raju Hasmukh with files from UCA News
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