Opposition Slams New FCRA Rules, Says They Cripple NGOs and Bypass Parliament

Leaders of the Congress and the Communist Party of India (Marxist) have written separately to Prime Minister Narendra Modi and Union Home Minister Amit Shah, urging the withdrawal of the recently notified Foreign Contribution (Regulation) Amendment Rules, 2026. The opposition parties allege that the changes will severely restrict the functioning of non-governmental organisations (NGOs), minority institutions and voluntary organisations across the country.

In his letter to the Prime Minister, Congress general secretary and Public Accounts Committee chairperson K C Venugopal described the amendments as a “systemic assault” on India’s civil society. He accused the government of tightening control over NGOs through executive action after facing resistance in Parliament. “The latest amendments reflect a disturbing intent to micromanage, harass and financially cripple the voluntary sector,” Venugopal wrote.

He argued that forcing NGOs to choose activities from a government-prescribed list and restricting their operations to pre-approved geographical areas would undermine their ability to respond to emergencies and local needs. Venugopal also objected to provisions requiring organisations to seek additional approvals and pay separate fees for expanding operations to other states. According to him, the amendments impose “extortionate fines” of up to 30% of foreign funds received, or a minimum of Rs 1 lakh, for violations such as operating outside approved areas.

The Congress leader further criticised new disclosure requirements mandating NGOs to furnish details of their social media accounts, websites and publications, calling them part of a “mass surveillance” framework. He linked the rules to the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, which sought to create a “Designated Authority” to take over assets created from foreign contributions when an organisation’s FCRA registration is cancelled, surrendered or expires. The government had deferred discussion on the Bill after opposition protests in Parliament. “Now, the government is attempting to implement the same draconian controls through the back door via executive rule amendments, completely bypassing the Lok Sabha,” Venugopal said.

Separately, CPI(M) Rajya Sabha MP John Brittas wrote to Home Minister Amit Shah, raising “serious constitutional concerns” over the amendments and seeking their immediate withdrawal. He argued that while regulation of foreign contributions is a legitimate sovereign function, it must not become a tool for constricting charitable, educational and faith-based organisations. Brittas said the amendments marked a shift from regulating foreign funds to regulating voluntary organisations themselves, citing provisions that prescribe specific categories of activities, geographically restrict operations, expand reporting requirements and widen the definition of “key functionaries”.