Church memorandum warns funding law changes could harm civil society

CBCI urges lawmakers to protect pluralism, due process and charitable service as proposed amendments to Foreign Contribution (Regulation) Act risk asset seizure, reduced autonomy and disruption of aid to vulnerable communities.

NEW DELHI (Indian Catholic News) — Legislative measures governing charitable activity must protect India’s pluralism, compassion and service ethos, Catholic bishops said, urging the home minister to ensure reforms do not hinder civil society’s vital contribution.

In a memorandum addressed to Members of Parliament and separately also to Amit Shah, the Union Home Minister, the Catholic Bishops’ Conference of India warned that proposed amendments to the Foreign Contribution (Regulation) Act (FCRA) could have far-reaching implications for charities, faith-based groups and the communities they serve.

“The proposed Amendment, while intended to strengthen regulatory oversight, raises serious concerns about constitutional balance, civil society freedom, and the future of charitable service in India,” the memorandum said.

The submission, dated March 31, calls on lawmakers to re-examine provisions that would expand state control over foreign-funded organisations, particularly in relation to the vesting of assets. The memorandum was signed by Archbishop Anil J. T. Couto of Delhi and CBCI Secretary General.

Asset vesting raises constitutional concerns

At the centre of the Church’s concern is a new provision allowing foreign contributions and assets created from them to be transferred to a designated authority in cases where registration is cancelled, surrendered or deemed to have ceased.

The memorandum notes: “In all cases where the FCRA registration is either cancelled or surrendered or cessation happens the balance of FCRA funds and the assets created out of the FCRA Funds gets vested in the Designated Authority.”

It argues that this approach risks violating constitutional protections, particularly property rights. “Such provisions raise concerns under Article 300A of the Constitution of India, which protects the right to property and requires that any deprivation be just, fair, and reasonable,” the document said.

The bishops also highlighted the absence of judicial oversight. “The absence of prior judicial determination before such vesting of assets departs from established principles of due process and proportionality,” it said.

Renewal process and lack of transparency

The memorandum further criticised the renewal mechanism, which it said is entirely controlled by the Ministry of Home Affairs without adequate communication or recourse for organisations.

“The deficiencies noticed by the department is not communicated to the association and the associations are not granted an opportunity to make representations regarding the deficiencies on the basis of which the renewals are refused or denied,” it said.

It warned that organisations denied renewal — including those compliant for years — could face disproportionate penalties, including the loss of assets built over decades of lawful service.

“The biggest hit of the new provision is going to happen to the associations whose renewal is not granted in the 2021 renewal process and whose renewal is going to be denied in the 2026 renewal process,” the memorandum said.

The bishops stressed that renewal approvals implicitly recognise compliance. “Each time when the renewal is granted the Central Government is implicitly recognizing that no apparent violation has been done by the organization till that time,” it said.

Impact on charitable and faith-based institutions

The memorandum also raised concerns about the broader impact on religious freedom and charitable work, warning that the amendments could undermine institutions serving marginalised communities.

“The Amendment also impacts the constitutional guarantees under Articles 25 and 26, which protect religious freedom and denominational autonomy,” it said.

Faith-based organisations, it noted, play a critical role in education, healthcare and social outreach. “The proposed changes risk undermining these efforts and disrupting essential services to vulnerable populations,” the document said.

It added that expanded liability provisions could deter voluntary leadership. “The expansion of liability to all ‘key functionaries,’ including trustees and office bearers, introduces a presumption of culpability unless proven otherwise,” it said.

Call for safeguards and consultation

In its recommendations, the bishops urged Parliament to refer the bill to a standing committee, introduce safeguards for due process and ensure proportionality in enforcement.

“Regulation is necessary, but it must not become excessive control or result in unintended expropriation,” the memorandum said.

It also called for the creation of an independent appellate mechanism to ensure fair adjudication and protect organisations from arbitrary decisions.

Emphasising the broader national context, the document concluded: “India’s strength lies in its pluralism, compassion, and spirit of service. Legislative measures governing charitable activities must safeguard these values and enable, rather than hinder, the vital contribution of civil society.”

Read the full memorandum.