Tamil Nadu Assembly Unanimously Asks Centre to Withdraw FCRA Amendment Bill

The Tamil Nadu Legislative Assembly on Tuesday unanimously passed a resolution urging the Union Government to withdraw the Foreign Contribution (Regulation) Amendment Bill, 2026, in its present form. The resolution, moved by School Education, Tamil Development, Information and Publicity Minister Rajamohan, expressed deep concern over provisions in the Bill that deal with the transfer, management, disposal and sale of assets belonging to charitable organisations.

The Bill, as proposed, would allow the government to take over assets of organisations under circumstances such as expiry of FCRA registration, non-renewal or refusal of renewal, cancellation of registration, or surrender of registration. The resolution stated that these provisions "may adversely affect the autonomy of charitable organisations and, in particular, the functioning of educational and social welfare institutions run by minorities."

The House urged the Union Government to withdraw the Bill in its current form and undertake comprehensive consultations with all stakeholders, including State governments and charitable, religious, educational, medical and social organisations. The resolution emphasised that any amendment must ensure the principles of natural justice, proportionality, protection of property rights, legitimate expectation and federalism.

While supporting the need for transparency and accountability in foreign contributions, the resolution said the law must also protect the rights of lawfully functioning charitable, educational, medical, religious, cultural and social welfare organisations. It called for a balanced approach that does not undermine the autonomy of non-governmental entities engaged in legitimate social work.

Earlier in the debate, BJP member M. Bhojarajan defended the Bill, arguing that the amendment was necessary to ensure that foreign funds were not used for anti-national activities. However, he did not participate in the voting on the resolution, which was passed unanimously with support from all other members present.

The Foreign Contribution (Regulation) Act, originally enacted in 2010, regulates the acceptance and utilisation of foreign contributions by individuals and organisations in India. The 2026 Amendment Bill seeks to tighten control over such funds, particularly in the context of national security. However, critics have expressed concern that certain provisions could infringe on the operational independence of non-governmental and charitable bodies, especially minority-run educational and social welfare institutions.

Tamil Nadu's resolution is the latest in a series of objections raised by various state governments and civil society groups against the Bill. Several states have argued that the proposed asset transfer provisions are disproportionate and violate the spirit of federalism, as they give the central government significant powers over state-level organisations. The resolution also noted that the Bill could discourage foreign funding for legitimate developmental and humanitarian work in the country.

The Union Government has not yet responded to the resolution. The Bill is currently pending in Parliament, where it has sparked heated debates. Supporters of the Bill argue that stricter oversight is essential to prevent foreign interference in India's internal affairs, while opponents maintain that the provisions must be revised to protect fundamental rights and institutional autonomy.

The Tamil Nadu Assembly's stand reflects a broader concern among state legislatures about the central government's growing role in regulating non-profit entities. Observers note that this resolution could influence the final shape of the legislation, as the government may need to address concerns raised by multiple states to ensure smooth passage. The decision also highlights the importance of stakeholder consultations in a federal democracy, where the concerns of diverse regions and communities must be taken into account in law-making.