M. A. Baby, General Secretary of the Communist Party of India (Marxist) has written a letter today to the Prime Minister, regarding the urgent demand to rescind the Foreign Contribution (Regulation) Amendment Bill, 2026. We are herewith releasing the text of the letter for publication.

 To

Shri Narendra Modiji,

Hon’ble Prime Minister

Government of India

New Delhi

Subject: Urgent Demand to Rescind the Foreign Contribution (Regulation) Amendment Bill, 2026

Dear Shri Modiji,

I write to you with a deep concern regarding the Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha on March 26, 2026. We are compelled to register our strongest objections to the provisions contained in this Bill. We demand, in the interest of constitutional morality and democratic principles, that the government immediately rescind this legislation.

We acknowledge the State’s prerogative to regulate the flow of foreign contributions to ensure transparency and national security. The proposed amendments, however, cross the threshold from reasonable regulation to excessive control, enabling executive overreach.

1. Unfettered Power of Asset Seizure via a ‘Designated Authority’: The Bill proposes the creation of a powerful ‘Designated Authority’ empowered to take over, manage, and dispose of assets created out of foreign funds by NGOs whose registration has been suspended, canceled, or not renewed. This is an extreme provision that threatens the very existence of civil society organisations. In many cases, assets are created through a mix of domestic and foreign funds. The proposed blanket takeover makes no provision for the protection of locally sourced assets. Granting the executive the power to permanently vest such assets, without adequate judicial oversight amounts to a punitive measure that goes far beyond the scope of regulatory oversight.

2. Excessive Government Control and Erosion of Federalism: The Bill mandates that state governments must seek prior approval from the Union Government to initiate any FCRA-related investigation. This provision undermines the federal structure enshrined in our Constitution. Law enforcement and the maintenance of public order are concurrent subjects; imposing a central veto on state investigative powers centralises power that is antithetical to federalism.

3. Discretionary Powers Leading to Subjectivity and Arbitrariness: The Bill vests immense discretionary powers in the ‘Designated Authority’ without prescribing adequate safeguards against misuse. This creates an environment of fear where organisations working in areas such as human rights, environmental protection, and minority welfare may find themselves targeted not for violations of law, but for dissent against government policies. As per the Ministry of Home Affairs portal, while approximately 15,000 organisations are currently registered, the registrations of nearly 20,711 organisations have been canceled. The FCRA is increasingly perceived not as a tool for regulation, but as a political weapon to silence dissent and harass organisations that question government policies.

4. Impact on Minority Institutions: The Bill places minority institutions under an excessively stringent regulatory framework, raising serious concerns about undue interference in their functioning. Provisions that allow the government to deny renewal or cancel licenses and assume control over the funds and properties of these institutions are a direct threat to constitutionally guaranteed freedoms, including the right to manage religious and linguistic minority institutions.

5. Lack of Consultation: We note with dismay that this Bill was introduced unilaterally, despite protests from opposition Members of Parliament. Legislation that so profoundly impacts fundamental rights, demands wider consultation and deliberation. The introduction of such a Bill without adequate consultation reflects a disregard for the participatory nature of democratic lawmaking.

The government’s hostility towards non-governmental organisations is evident in the series of amendments made to the FCRA since 2016. The cumulative effect of these amendments has been to make the functioning of NGOs increasingly difficult. The 2026 Bill is a continuation of this trend, threatening to effectively ‘kill’ organisations that accept legitimate foreign contributions for charitable, educational, or human rights work.

The requirement for compliance of a law must not become a requirement to conform to the government’s political line. Excessive power in the executive creates an environment where independent thought in the social sector are stifled.

In light of the above, we demand that the government:

1.   Immediately rescind the Foreign Contribution (Regulation) Amendment Bill, 2026;

2.   Withdraw all contentious provisions that empower the executive to seize and manage assets without judicial oversight;

3.   Ensure that any future regulatory framework is in line with constitutional guarantees of freedom of association and expression; and

4.   Undertake wide-ranging consultations with civil society, minority institutions, and legal experts before introducing any further amendments to the FCRA.

We await your positive response and urge you to take immediate corrective action. 

Yours, 

M. A. Baby

(General Secretary)