Latest Delhi – India’s Lok Sabha is considering amendments to the Foreign Contribution (Regulation) Act (FCRA) that would significantly expand the government’s power over the assets of non-governmental organizations (NGOs) that have had their licenses revoked. The proposed changes, critics say, represent a further tightening of restrictions on civil society and raise concerns about the freedom of association and expression. The debate over the FCRA comes as India’s civil society landscape faces increasing scrutiny and limitations on foreign funding, impacting organizations working on a range of issues from human rights to environmental protection.
The proposed amendment would empower a “designated authority” to take control of, manage, and ultimately dispose of assets belonging to NGOs whose FCRA registrations have been suspended, cancelled, or not renewed. This represents a substantial escalation of the existing law, which already allows the government to restrict or cancel licenses based on broadly defined criteria. Aakar Patel, Chair of the Board at Amnesty International India, described the move as a “blatant abuse” of the legislation, designed to “further crack down on civil society under the pretext of national security.”
The FCRA, initially enacted in 2010, has been repeatedly amended since its inception, and has turn into a focal point of contention between the government and civil society organizations. Official data, as of March 26, 2026, shows that 21,933 organizations have lost their FCRA licenses, according to information available on the FCRA Online portal. The dashboard illustrates the scale of license cancellations and their potential impact on the operational capacity of numerous organizations.
A History of Restrictions and Concerns
The current debate builds on a pattern of increasing restrictions on foreign funding for Indian NGOs. The government has repeatedly amended the FCRA, making it more stringent and burdensome for organizations to operate. These changes have included stricter reporting requirements, limitations on administrative spending, and increased scrutiny of funding sources. Critics argue that these measures are often used to target organizations critical of government policies or working on sensitive issues.
Amnesty International’s research has indicated that organizations focused on minority rights, freedom of expression, environmental protection, and climate action have been disproportionately affected by the FCRA restrictions. The organization’s 2023 report detailed the impact of the FCRA on these groups, highlighting the challenges they face in continuing their work.
International Scrutiny and Warnings
The Indian government’s approach to regulating foreign funding has also drawn criticism from international bodies. In 2024, the Financial Action Task Force (FATF) found India only “partially compliant” on safeguards for non-profits. The FATF warned that measures like the FCRA could be misused to restrict legitimate civil society activity and urged the government to adopt a more risk-based and proportionate approach.
Further back, in 2016, the UN Special Rapporteur on the rights to freedom of peaceful assembly and of association warned the Indian government that the FCRA contained overly broad and vague provisions that undermined the right to freedom of association. The rapporteur’s report raised concerns about the potential for the law to be used to suppress dissent and restrict the activities of civil society organizations.
Legal Challenges and Ongoing Litigation
Many organizations are currently engaged in legal battles challenging the cancellation, suspension, or non-renewal of their FCRA licenses. The proposed amendment, according to Patel, would be a further abuse of the legal process, effectively allowing the government to seize assets while these cases are still pending. This raises serious questions about due process and the rule of law.
The proposed changes also come at a time when India’s civil society is facing increasing pressure from other sources, including restrictions on freedom of speech and assembly, and the use of sedition laws against activists and journalists. These factors, combined with the tightening of FCRA regulations, are creating a challenging environment for organizations working to promote human rights, environmental protection, and social justice.
The Lok Sabha is expected to debate the amendment in the coming weeks. Civil society organizations are urging members of parliament to reject the proposed changes and uphold the country’s constitutional commitments to freedom of expression and association. The outcome of this debate will have significant implications for the future of civil society in India and its ability to play a vital role in addressing the country’s most pressing challenges.
The next step in the legislative process is a vote in the Lok Sabha. The date of the vote has not yet been announced, but is expected before the finish of the current parliamentary session. Organizations are mobilizing to lobby members of parliament and raise public awareness about the potential consequences of the amendment. Updates on the progress of the legislation can be found on the PRS Legislative Research website: PRS Legislative Research.
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