Congress, CPI(M) Leaders Urge Modi Government to Scrap New FCRA Rules, Warn of NGO Strangulation

Two opposition leaders have separately written to Prime Minister Narendra Modi and Union Home Minister Amit Shah, seeking the withdrawal of the recently notified Foreign Contribution (Regulation) Amendment Rules, 2026. They argue that the changes will adversely affect the functioning of civil society organisations and amount to an overreach by the government.

Congress general secretary (organisation) K.C. Venugopal wrote to Prime Minister Modi, stating that the amendments are an attempt to curb the independence of non-governmental organisations (NGOs). In his letter, Venugopal said: “These rules are an overt and systemic assault on India’s civil society, designed not to regulate, but to strangulate the non-governmental organizations that form the backbone of our grassroots developmental and social welfare frameworks.”

The new rules, notified on June 22, require NGOs to register under one of five categories—social, economic, educational, cultural, and religious—with separate activity lists prescribed for each. Organisations must also disclose details of their activities, geographical scope, websites, social media accounts and publications, and pay separate fees for each category and State or Union Territory in which they operate.

Venugopal said that forcing NGOs to choose from a “rigid, government-mandated list” of activities and restricting their operational geography would undermine their ability to respond to emergencies. He also objected to the imposition of separate fees and penalties, describing them as “an administrative toll-tax designed to discourage pan-India social work.” The Congress leader further criticised provisions mandating disclosure of digital presence, alleging that they reflected “a mindset of mass surveillance” and would “convert an independent civil society into a terrified, government controlled echo chamber.” He urged the Prime Minister to withdraw the rules and initiate consultations with stakeholders.

In a separate letter to Home Minister Amit Shah, Communist Party of India (Marxist) Rajya Sabha leader John Brittas raised constitutional concerns. He argued that the amendments go beyond financial regulation and alter the nature of oversight over voluntary organisations. “Collectively, these changes signify a decisive shift from regulating foreign contribution to regulating voluntary organisations themselves,” Brittas wrote.

Brittas said the rules introduce vague and undefined terms such as “proselytisation,” which could lead to arbitrary interpretation and have a “chilling effect on the legitimate exercise of constitutional freedoms.” He also flagged expanded reporting requirements, stating that they “extend regulatory scrutiny into the sphere of institutional communication, expression, thought, and digital presence.”

The Foreign Contribution (Regulation) Act (FCRA) governs the receipt of foreign funds by Indian entities. The new rules are the latest in a series of amendments that have tightened oversight of NGOs, sparking debate about the balance between regulation and civil society independence.