MADURAI, Tamil Nadu (Indian Catholic News) — A civil society platform has raised serious concerns over India’s proposed Foreign Contribution (Regulation) Amendment Bill, urging safeguards for charitable property and places of worship.
Nattai Kappom (Save the Nation), a Madurai-based platform of civil society organisations whose members are mostly Catholic, submitted a memorandum Sept. 25 to the Joint Parliamentary Committee examining the 2026 FCRA amendment bill.
The memorandum warns the bill’s impact could reach “considerably beyond regulation of foreign contribution,” particularly through provisions dealing with registration, asset vesting, charitable property, criminal liability, investigations and delegated powers.
The group, which advocates for human rights, constitutional values, democratic principles, and the welfare of marginalized groups said it supports the legitimate objectives of the FCRA, including “transparency, accountability, proper utilisation of foreign contribution and prevention of misuse of funds.”
The FCRA regulates foreign funding of NGOs and religious institutions. Amendments proposed in 2026 have drawn concern from church bodies and civil society groups, who argue that restrictions could hinder charitable work.
After protests from Opposition parties and Christian churches, the Government of India on August 13 referred the bill to a Joint Parliamentary Committee that is tasked to submit its report by the last day of the first week of the Winter Session 2026 expected to take place between November and December.
Civil society seeks safeguards
Nattai Kappom said it gathered views Sept. 23 from about 80 participants representing around 60 civil society organisations across India before submitting its recommendations.
It said charitable, religious, educational, health and humanitarian organisations have contributed to public welfare through areas including education, health care, disaster relief, rural development, social welfare and human-rights services.
“The FCRA framework should therefore distinguish between those organizations culpable for regulatory violations and those engaged in the legitimate public-benefit work and service,” the memorandum said.
Its main concern is the proposed mechanism for vesting organisational assets when an FCRA registration is cancelled, surrendered or ceases.
The group said the proposed framework could affect organisations that continue operating with domestic funds after losing their FCRA registration, including institutions whose assets were created wholly or partly with foreign contributions received years earlier.
Concerns over permanent asset vesting
The memorandum identifies proposed Section 16A as the “central and most serious concern” because assets established for long-term charitable and public-benefit purposes could be impacted even when organisations continue serving communities through domestic resources.
Nattai Kappom recommended removing the proposed vesting provision where there is no finding of fraud, diversion or serious violation.
It also raised concerns about assets created through a combination of foreign and domestic funds, noting that it could be difficult to determine the portion attributable to foreign contribution in an indivisible building or other property.
The group recommended that property created partly from domestic resources should not automatically vest in its entirety because part of its original cost was financed through foreign contribution.
It further called for deletion of provisions allowing permanent vesting and disposal of immovable charitable property. If a vesting mechanism is retained, it said, it should be limited to “unutilised foreign contribution actually lying with the organisation.”
Places of worship and minority institutions
The memorandum gives particular attention to places of worship covered by the proposed Section 16A.
While the bill proposes that the religious character of a permanently vested place of worship be maintained, Nattai Kappom said this is different from preserving the concerned religious community’s right to administer it.
“Places of worship should be expressly excluded from permanent asset vesting,” the group recommended. Alternatively, any action involving such property should require prior judicial determination, notice and a hearing, participation of the concerned religious institution, and protection of its “religious character and lawful management.”
The group also sought safeguards for minority educational institutions protected under Article 30, saying their assets should not be permanently vested merely because FCRA registration has expired, ceased or not been renewed, unless fraud, diversion or other serious unlawful conduct has been established.
Calls for judicial oversight
Nattai Kappom also raised concerns over access to confidential records, the powers of the proposed Designated Authority, appeals and criminal liability.
It recommended safeguards for personal, medical, legal and beneficiary information held by civil society organisations, with access based on “written reasons, necessity, and proportionality.”
The group called for independent valuation, written reasons and judicial oversight of the designated authority’s powers. It also said no irreversible transfer, sale, disposal or permanent vesting of immovable property should occur while an appeal is pending.
On criminal liability, it recommended prosecution principally for “wilful and material violations” and said minor or technical defaults should generally be addressed through corrective measures rather than criminal prosecution.
Among its specific recommendations, the group urged the committee to “protect the religious character and lawful management of places of worship,” exclude places of worship and Article 30 minority educational institutions from permanent asset vesting, and ensure effective appeal and review mechanisms.
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