New Delhi: The CPI(M) on Monday demanded the rescinding of the Foreign Contribution (Regulation) Amendment Bill, 2026, in the interest of “constitutional morality,” warning that it may bring excessive government control and erode federalism.
In a letter to Prime Minister Narendra Modi, party general secretary MA Baby expressed “deep concern” over the proposed amendment.
“We demand, in the interest of constitutional morality and democratic principles, that the government immediately rescind this legislation,” Baby said in the letter.
The CPI(M) leader said the proposed amendments “cross the threshold from reasonable regulation to excessive control, enabling executive overreach”, even as he acknowledged the state’s prerogative to regulate the flow of foreign contributions to ensure transparency and national security.
Baby pointed out that 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, cancelled, or not renewed.
“This is an extreme provision that threatens the very existence of civil society organisations,” he said.
“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,” he said.
The Left leader said the bill’s provision mandating that the state governments seek prior approval from the Union to initiate any FCRA-related investigation undermines “the federal structure enshrined in our Constitution.”
“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,” he said.
Baby said the bill places minority institutions under an excessively stringent regulatory framework, raising serious concerns about undue interference in their functioning, and noted “with dismay” that no consultations were done before its drafting.
“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,” he alleged.
“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,” he said.
He demanded that the bill be rescinded, and all its provisions that “empower the executive to seize and manage assets without judicial oversight” be withdrawn.
He also demanded that the government ensure any future regulatory framework is in line with constitutional guarantees of freedom of association and expression and holds consultations with civil society, minority institutions, and legal experts.
CPI(M) Rajya Sabha MP John Brittas, meanwhile, wrote to Amit Shah over the draft law. He said the proposed amendments represent a fundamental structural shift in the statutory framework governing foreign contributions and raise serious constitutional, legal, and institutional concerns.
He said the Foreign Contribution (Regulation) Act, 2010, as amended in 2020, already constitutes “one of the most stringent regulatory regimes governing civil society organisations in the country.”
Brittas urged the government to reconsider proceeding with the Bill in its present form and instead consult constitutional experts and representatives of civil society and minority institutions.
“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,” he said.
The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha last week, significantly tightens its oversight of foreign-funded organisations, proposing the creation of a powerful new authority to seize and manage the assets of non-profits that lose their licence.
