Washington: India has rejected allegations that the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, could allow the government to take control of churches, religious charities or civil society organisations, arguing that the legislation is intended to improve transparency and strengthen oversight of foreign funds.
In a detailed “Myth vs Reality” explanation, Ambassador Vinay Mohan Kwatra said the proposed changes are part of the country’s continuing effort to regulate foreign financial flows while ensuring clearer rules and better governance.
Kwatra said the Foreign Contribution (Regulation) Act does not prohibit lawful organisations from receiving overseas donations. Thousands of registered associations continue to receive foreign contributions for activities including healthcare, education, research, disaster relief and humanitarian assistance.
According to him, foreign contributions received by registered organisations increased from around $1.2 billion in 2010-11 to $2.67 billion in 2024-25. Of the more than three million NGOs operating in India, about 14,450 have FCRA registration.
Addressing concerns over the proposed handling of assets, Kwatra said the government is not introducing an entirely new mechanism. Under existing provisions, foreign contributions and assets created from such funds can vest with a state authority when an organisation loses or surrenders its registration. The proposed legislation would establish a designated authority to manage such assets and provide a mechanism for their restoration if registration is reinstated.
He also said places of worship would receive specific protection, with their properties eligible to be transferred to another FCRA registered organisation of the same faith to maintain continuity of religious activities.
Kwatra rejected claims that the legislation targets any particular religion or community, stressing that the rules would apply uniformly to organisations regardless of their faith or ideology.
His clarification followed criticism from several US lawmakers who raised concerns about the potential impact of the proposed amendments on Christian organisations and other civil society groups.
India has maintained that regulation of foreign funding is an internal legislative matter and pointed out that several countries, including the United States, have their own frameworks governing overseas financial flows.
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