MP Urges Centre to Withdraw FCRA Amendments, Cites Harm to NGOs and Marginalised Communities

M.K. Raghavan, a member of Parliament, has appealed to the Union government to immediately withdraw the controversial amendments to the Foreign Contribution (Regulation) Act (FCRA), stating that they are adversely impacting the functioning of voluntary organisations and charitable trusts across the country.

In a letter to Union Home Minister Amit Shah, Raghavan said the recent changes have effectively stalled social and welfare activities undertaken by various non-governmental organisations (NGOs), particularly those serving marginalised communities.

Raghavan noted that the amendments impose stringent restrictions on the use of foreign funds for administrative expenses, as well as on the transfer of funds to other organisations. He also pointed to the requirement that transactions be routed only through designated bank accounts in New Delhi, which, he said, causes delays in delivering timely assistance to beneficiaries.

Stating that measures introduced in the name of ensuring transparency are, in effect, “strangulating” the day-to-day operations of NGOs, the MP cautioned that the changes could disrupt education, healthcare, and livelihood support programmes reaching millions of people.

He further warned that the regulations would lead to job losses among thousands of employed people in the social sector and push vulnerable groups into deeper distress. Raghavan also urged the Centre to reconsider steps related to cancellation of licenses of certain organisations involved in relief and medical assistance work.

Calling for a policy shift, he said voluntary organisations should not be kept under constant suspicion. He appealed to the Home Ministry to uphold democratic values by withdrawing the latest amendments. The FCRA was amended in 2020 to increase government control over foreign funding of NGOs, with provisions including mandatory Aadhaar registration and restrictions on fund usage.