NGOs in A.P. and Telangana call for revisions to FCRA Bill, 2026

Representatives of the Andhra Pradesh and Telangana State Federation of Foreign Contribution (Regulation) Amendment (FCRA) NGOs on Tuesday (April 7) expressed serious concern over certain provisions of the FCRA Bill, 2026, introduced in the Lok Sabha on March 25, 2026.

At a press conference in Vijayawada, they expressed apprehensions about the proposed creation of a designated authority vested with sweeping powers to take provisional and, in many cases, permanent control of all foreign contributions and assets created — even partly — from such funds. This includes schools, hospitals, places of worship, equipment, and infrastructure built over decades through the dedicated efforts of non-profit organisations, they said.

They said that the treatment of assets created with a mix of foreign contribution and domestic funds was a matter of grave worry. “Under the proposed provisions, any asset acquired even partly from foreign contribution, shall vest wholly in the designated authority,” said federation’s convenor Oliver Rayi. He said while there is a limited right to seek return of clearly identifiable domestic-funded portions, in practice most organisations have inter-mingled resources over the years, making segregation extremely difficult and uncertain. “This risks unjust loss of hard-earned assets that were largely built with Indian contributions and sweat equity,” he said.

The members pointed out that introduction of “deemed cessation” of FCRA registration — triggered automatically if renewal applications are not filed, are rejected, or are not processed before expiry — allows cancellation of licences without affording organisations a reasonable prior opportunity to be heard or to rectify minor lapses. Once cessation occurs, assets vest immediately in the Designated Authority, leaving affected entities with only a post-facto appeal to the District Judge within 90 days, they said, adding that such a framework appears to deny natural justice and due process at the critical stage.

The representatives said that if the changes are enacted in their present form, they could create widespread uncertainty, impose heavy compliance burdens, and discourage foreign donors. This would inevitably affect the ability of genuine non-profit organisations to sustain essential services in education, healthcare and welfare for the most marginalised communities across Andhra Pradesh, Telangana and the country.

They appealed to the Central government to reconsider the provisions relating to asset vesting (especially mixed-fund assets) and deemed cessation of registration and hold wider consultations with stakeholders from the voluntary sector before proceeding further, so that legitimate charitable work is not inadvertently hampered, while ensuring transparency and accountability.