Foreign Contribution Regulation Amendment Bill 2026: CPIM urges withdrawal, flags NGO asset takeover risk

The Communist Party of India (Marxist) has urged Prime Minister Narendra Modi to rescind the Foreign Contribution Regulation Amendment Bill, 2026, citing constitutional morality and democratic principles. General secretary M. A. Baby warned the proposal could expand executive control, weaken federalism, and allow a Designated Authority to take over and dispose of NGO assets funded through foreign contributions.

The CPIM has asked the Union government to withdraw the Foreign Contribution Regulation Amendment Bill, 2026. The party warned the draft law could expand executive power over NGOs. It also said the Bill may weaken India’s federal structure. The demand came after the Bill was introduced in the Lok Sabha last week.

In a letter to Prime Minister Narendra Modi, CPIM general secretary MA Baby raised objections. Baby wrote: "We demand, in the interest of constitutional morality and democratic principles, that the government immediately rescind this legislation.\" Baby said the changes move beyond normal checks. Baby also accepted states regulate foreign funds for transparency and security.

Foreign Contribution Regulation Amendment Bill, 2026 and a new Designated Authority

MA Baby said the Bill proposes a Designated Authority with wide powers. The authority could take over, manage, and dispose of assets built from foreign funds. This could apply when an NGO’s registration is suspended, cancelled, or not renewed. Baby called the plan dangerous for civil society groups and their survival.

Baby wrote: \"This is an extreme provision that threatens the very existence of civil society organisations,\" He also criticised asset transfers without strong court checks. Baby wrote: \"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,\"

Foreign Contribution Regulation Amendment Bill, 2026 and federalism concerns

The CPIM leader also objected to limits on state action under the Bill. Baby said states would need prior Union approval to start any FCRA-related investigation. Baby argued this weakens the federal structure set by the Constitution. Baby warned it could shift key powers away from states.

Baby wrote: \"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,\" Baby also said minority institutions face tighter controls. Baby added no consultations took place before drafting.

Foreign Contribution Regulation Amendment Bill, 2026 and earlier FCRA changes since 2016

Baby alleged the government has shown hostility to NGOs through repeated FCRA amendments since 2016. Baby said the combined impact has made daily work harder for many groups. Baby described the 2026 Bill as part of that same pattern. Baby said it could shut organisations using lawful foreign funds.

Baby asked the government to withdraw the Bill and remove provisions on asset seizure. Baby also demanded future rules match constitutional rights on association and expression. Baby urged consultations with civil society, minority institutions, and legal experts. Baby said any new framework should protect freedoms while ensuring transparency.

Foreign Contribution Regulation Amendment Bill, 2026 and John Brittas’ letter

CPIM Rajya Sabha MP John Brittas wrote separately to Amit Shah about the draft law. Brittas said the plan changes the foreign contribution system at a basic level. Brittas warned it raised constitutional, legal, and institutional issues. Brittas also said the existing law is already among the strictest.

Brittas said the Foreign Contribution Regulation Act, 2010, amended in 2020, is highly restrictive for civil society groups. Brittas urged the government to pause the Bill in its current form. Brittas called for talks with constitutional experts and civil society members. Brittas wrote: \"Legislative reform must strengthen transparency without undermining constitutional freedoms or the autonomy necessary for voluntary organisations to function effectively in a democratic society governed by the rule of law,\"

The Foreign Contribution Regulation Amendment Bill, 2026 was introduced in the Lok Sabha last week. The draft law proposes tighter oversight of foreign-funded organisations. It also seeks a new authority to seize and manage assets of non-profits that lose their licence. CPIM leaders have asked for withdrawal and wider consultations.

With inputs from PTI