New Delhi, March 27, 2026 – India’s apex Catholic body, the Catholic Bishops’ Conference of India (CBCI), has strongly criticised the Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha on March 25-26, describing it as “dangerous and alarming in its implications” for minority institutions and civil society organisations. The bill seeks to create a powerful new “designated authority” that would allow the government to seize, manage, and dispose of assets built with foreign contributions once an NGO’s FCRA registration is suspended, cancelled, surrendered, or simply not renewed.
The CBCI, representing the Catholic Church’s leadership across India, issued a detailed statement on Thursday urging the government to “reconsider the proposed amendments and to remove all contentious provisions from the bill.” The bishops warned that the changes, introduced under the pretext of licence renewal and better oversight, could enable “executive overreach into the constitutionally guaranteed freedoms of minorities.”
# What the Bill Proposes
The Foreign Contribution (Regulation) Amendment Bill, 2026 — cleared by the Union Cabinet on March 18 — introduces a new Chapter IIIA in the FCRA. This establishes a “designated authority” with statutory powers for the provisional and permanent vesting, supervision, management, and disposal of foreign contributions and the assets created from them. The provision kicks in automatically when an organisation’s FCRA certificate:
* is cancelled under Section 14,
* is surrendered under Section 14A,
* ceases under the new Section 14B (deemed cessation upon expiry, non-renewal, or refusal of renewal), or
* is suspended.
The bill also imposes strict timelines for the receipt and utilisation of foreign funds, rationalises penalties for violations, and requires prior central government approval before any investigation into FCRA-registered entities can begin. According to government data, around 16,000 associations currently hold FCRA registration and receive approximately ₹22,000 crore in foreign contributions annually.
Introducing the bill in the Lok Sabha, Minister of State for Home Affairs Nityanand Rai said the amendments would plug operational and legal gaps that have led to uncertainty in asset management after licence cancellation. He asserted that the Modi government “will not tolerate any misutilisation of foreign funding” and would take strong action against those using foreign money for forced religious conversions or personal gain. Rai directly countered Opposition criticism by declaring that the bill is “indeed dangerous” — but only for those involved in such misuse.
# Church Leaders’ Grave Concerns
The CBCI’s statement objects specifically to the fact that the same Central Government that acts as the licensing authority would also gain the power to deny renewal or cancel licences and then, through the new designated authority, assume control over “institutions, funds, properties, and assets of minority organisations and NGOs.” The bishops called such powers “unacceptable” and questioned whether they meet standards of “fairness, transparency, and accountability.”
Prominent Catholic voices have been even more pointed. Jesuit human rights activist Father Cedric Prakash warned: “This will tremendously affect Church-based NGOs and also those run by other minorities. The assets bought with foreign funds are all in danger. Once this amendment passes, the government can easily take control of land, buildings, and funds.” He described the move as “a blatant weaponization of law” that would “seriously affect the good work being done for marginalized people,” adding that “the poor are going to be the biggest losers.”
Sister Mary Scaria, a Delhi-based lawyer and member of the Sisters of Charity of Jesus and Mary, said the amendments would “limit the freedoms of civil society and its organisations by restricting their access to foreign funds and their freedom of association,” further marginalising the disadvantaged.
Church leaders have noted that a large number of Christian-run NGOs operate schools, hospitals, orphanages, and rural development programmes that depend heavily on foreign donations from Catholic agencies abroad. Many of these institutions own land, buildings, and infrastructure purchased over decades with such funds.
# Broader Context and Criticism
The bill has also drawn sharp criticism from Opposition MPs in the Lok Sabha, who called it “draconian” and “dangerous,” arguing that it hands “sweeping and disproportionate powers to the executive” without adequate constitutional safeguards. Congress leader Manish Tewari objected to its introduction under Rule 72 of the Rules of Procedure, saying key details on asset management, timelines, and exemptions were being left to government rules rather than parliamentary legislation.
This is not the first time FCRA has been tightened. Since 2014, over 20,000 NGOs have had their licences cancelled or not renewed. The current amendments come amid ongoing scrutiny of foreign-funded organisations and repeated government assertions that some entities have misused funds for religious conversion activities.
The CBCI has called for “wider consultation and deliberation on matters affecting fundamental rights” before the bill proceeds further. The bishops emphasised that the changes must not undermine the constitutional rights and freedoms of all citizens, “especially minorities.”
As the bill moves through Parliament, its potential impact on thousands of faith-based and secular charitable organisations working among India’s poorest sections remains the central point of contention. Supporters see it as a necessary step for transparency and national security; critics, including the Church, view it as a significant threat to the independence of civil society and the ability of religious minorities to serve the marginalised without fear of state takeover of their assets.
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