PM Modi in Lok Sabha (Source: PTI)
New Delhi: The CPI(M) on Monday demanded the rescinding of the Foreign Contribution (Regulation) Amendment Bill, 2026, citing concerns over “constitutional morality” and warning that the proposed law could lead to excessive government control and erosion of federal principles.
In a letter addressed to Prime Minister Narendra Modi, party general secretary MA Baby expressed “deep concern” over the proposed amendments.
“We demand, in the interest of constitutional morality and democratic principles, that the government immediately rescind this legislation,” Baby stated.
While acknowledging the state’s authority to regulate foreign contributions in the interest of transparency and national security, Baby argued that the proposed amendments go beyond reasonable regulation.
He said the provisions “cross the threshold from reasonable regulation to excessive control, enabling executive overreach.”
A key concern highlighted was the proposal to establish a powerful ‘Designated Authority’ with sweeping powers to take over, manage, and dispose of assets created from foreign funds by NGOs whose licences are suspended, cancelled, or not renewed.
“This is an extreme provision that threatens the very existence of civil society organisations,” he said.
The CPI(M) leader warned that granting the executive authority to permanently vest such assets without adequate judicial oversight amounts to a punitive measure far beyond regulatory needs.
According to him, such provisions could fundamentally alter the relationship between the state and civil society by introducing coercive control mechanisms.
Baby also criticised a provision requiring state governments to seek prior approval from the Union government before initiating any FCRA-related investigation.
He said this undermines the federal structure enshrined in the Constitution.
“This creates an environment of fear where organisations working in areas such as human rights, environmental protection, and minority welfare may find themselves targeted not for violations of law, but for dissent against government policies,” he added.
The letter further raised concerns about stricter regulatory provisions for minority institutions, suggesting these could lead to undue interference in their functioning.
Baby also expressed “dismay” over the lack of consultation with stakeholders prior to drafting the Bill.
He alleged that a series of amendments to the FCRA since 2016 reflect a growing hostility towards non-governmental organisations, making their functioning increasingly difficult.
“The 2026 Bill is a continuation of this trend, threatening to effectively ‘kill’ organisations that accept legitimate foreign contributions for charitable, educational, or human rights work,” he said.
Separately, CPI(M) Rajya Sabha MP John Brittas wrote to Union Home Minister Amit Shah, raising concerns over the draft legislation.
Brittas described the proposed amendments as a “fundamental structural shift” in the statutory framework governing foreign contributions, warning of serious constitutional, legal, and institutional implications.
He noted that the existing Foreign Contribution (Regulation) Act, 2010, particularly after the 2020 amendments, is already among the most stringent regulatory regimes for civil society organisations in India.
Brittas urged the government to reconsider the Bill in its current form and instead consult constitutional experts, civil society representatives, and minority institutions.
“Legislative reform must strengthen transparency without undermining constitutional freedoms or the autonomy necessary for voluntary organisations to function effectively in a democratic society governed by the rule of law,” he said.
The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha last week, seeks to significantly tighten oversight of foreign-funded organisations.
Among its key provisions is the creation of a new authority empowered to seize and manage assets of non-profits that lose their licences, a move that has triggered sharp criticism from opposition parties and civil society groups.
This post was last modified on March 31, 2026 8:04 am