Christian leaders have urged Union Home Minister Amit Shah to withdraw the Foreign Contribution Regulation Amendment Bill, warning that its asset-transfer provisions could threaten churches, hospitals, schools and charitable institutions.
A delegation led by DMK Rajya Sabha MP P Wilson met Shah in New Delhi on Thursday, days before the legislation is expected to be taken up for discussion and passage in Parliament on August 12. The group described the proposed framework as “confiscatory” and sought either its complete withdrawal or referral to a joint parliamentary committee for wider scrutiny.
Representatives of Catholic, Protestant and Orthodox churches joined minority organisations under the Joint Action Forum on Minorities. They argued that the legislation moved beyond regulating foreign donations and could allow the state to assume control of property owned by organisations whose Foreign Contribution Regulation Act registration expires, is cancelled, is surrendered or is not renewed.
The delegation’s principal objection concerns the proposed Designated Authority, which would be empowered to take possession of foreign contributions and assets created wholly or partly with such funds. The authority could supervise the organisation’s activities, manage its property and, under specified circumstances, transfer or sell assets that become permanently vested in it.
Wilson said the government did not need to take over institutions and property merely because an organisation’s registration had been cancelled or had ceased to remain valid. He said the proposal could affect establishments serving the public, including hospitals and educational institutions, while also raising concerns over constitutional safeguards available to religious minorities.
Mizoram Chief Minister Lalduhoma, who participated in discussions with the home minister and church representatives, said Shah had assured the delegation that the proposed provisions would not be applied retrospectively. The assurance addressed one of the most contentious clauses, which states that the amended law would cover foreign contributions and assets already vested under the existing legal framework.
The Bill, introduced in the Lok Sabha on March 25, proposes a new system for supervising and disposing of assets when an organisation ceases to hold a valid FCRA certificate. Registration under the 2010 law is generally valid for five years and must be renewed for an organisation to continue receiving foreign contributions.
Under the proposed system, assets would initially vest provisionally in the Designated Authority. They could be returned if the organisation secures a fresh certificate or obtains renewal or restoration within a prescribed period. Failure to do so would result in permanent vesting.
Assets that become permanently vested could be transferred to a central or state government department, agency or local authority. They could also be sold, with the proceeds and unused foreign contributions credited to the Consolidated Fund of India.
The proposal covers assets acquired partly through foreign contributions and partly through other sources. An organisation could apply for the return of a distinct or ascertainable portion funded from domestic sources, subject to the satisfaction of the Designated Authority.
Places of worship receive limited protection under the draft legislation. Where such property becomes permanently vested, the authority would be required to preserve its religious character and entrust its management or operation to another person under prescribed conditions. Christian organisations have argued that this safeguard does not address their broader objection to state control over religious property.
The Bill also gives the authority access to an organisation’s premises, bank accounts, lockers, records and electronic data. Key functionaries would be required to surrender documents and assets, allow inspections and refrain from transferring or encumbering property without approval.
The government has presented the amendments as necessary to improve accountability in the use of overseas donations and prevent foreign funds from being diverted for unlawful activities, personal benefit or forced religious conversion. Minister of State for Home Affairs Nityanand Rai, while introducing the legislation, said organisations operating within the law had no reason for concern.
Opposition MPs have challenged that position, arguing that the proposed powers are too broad and lack adequate safeguards against arbitrary action. They have questioned the absence of a specific appeal mechanism when renewal is denied and the lack of an opportunity for an organisation to be heard before such a decision.
The legislation also lowers the maximum prison term for certain FCRA violations from five years to one year, while expanding administrative control over assets. More than 14,400 organisations held active FCRA certificates in mid-July, while over 22,000 registrations had been cancelled and about 15,200 were listed as expired.
