Christian legal advocates and civil society experts in India have expressed concern over proposed changes to the country’s foreign funding law, warning that the amendments could allow the government to take control of assets created by charitable organisations serving poor and vulnerable communities.
The concerns were discussed during an online seminar organised on 16 May by the Indian branch of the Alliance Defending Freedom (ADF), a Christian legal advocacy organisation. Around 1,000 participants attended the event.
India’s federal cabinet, led by Prime Minister Narendra Modi, approved the proposed amendments to the Foreign Contribution Regulation Act (FCRA) in March. The law governs how charities and non-governmental organisations receive and use overseas funding.
Although the bill has not yet been passed, it is expected to be discussed further during the upcoming monsoon session of Parliament.
Speakers at the webinar warned that the amendments could significantly increase government control over organisations that rely on foreign donations for humanitarian and charitable work.
Chartered accountant Sanjay Patra said one of the most serious concerns involves assets created using foreign contributions. He explained that organisations have already been required to submit detailed reports about their properties and resources over several years.
According to the proposed changes, the government could appoint a “designated authority” to oversee and manage the assets of organisations whose FCRA licences are cancelled, suspended, surrendered or not renewed.
Patra said that over the past decade, approximately 22,000 FCRA registrations have been cancelled, while another 15,000 organisations failed to receive renewals.
He also warned that charities could lose access to properties and resources funded through foreign donations if their registrations are suspended.
Senior lawyer Sanjay Hegde acknowledged that Parliament has the authority to pass such legislation. However, he stressed that any law affecting property rights must follow principles of fairness and due process.
He added that the amendments could still face legal challenges if they are found to violate constitutional protections.
Hegde also questioned whether organisations receiving foreign funding were being treated unfairly, as though their assets had been obtained through illegal activity.
Another legal expert, Siju Thomas, said Indian courts had often accepted the government’s argument that tighter regulations were needed to prevent misuse of foreign funds. Even so, he argued that several provisions in the proposed bill appear to conflict with legal safeguards and due process.
Hegde advised organisations to avoid using foreign donations to purchase or build new assets wherever possible, suggesting that such funds be directed mainly towards operational and service-related activities.
During the webinar, ADF India director Siju Thomas encouraged Christian and charitable organisations to speak with lawmakers before the bill returns to Parliament.
“It is important that organisations engage with members of Parliament and raise their concerns before the legislation moves forward,” he said.
Senior advocate Juby Mathew also highlighted concerns about mixed-funded assets. She explained that if a building or property was created using both local and foreign funding, authorities could still claim control over the entire asset if any portion involved overseas contributions.
This is a rewritten version of the original article from UCA News.
