New Delhi, March 30 The CPI(M) on Monday demanded the withdrawal of the Foreign Contribution (Regulation) Amendment Bill, 2026, in the interest of "constitutional morality," warning that it may lead to excessive government control and undermine 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 withdraw this legislation," Baby said in the letter.
The CPI(M) leader said the proposed amendments "cross the line 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 organizations," 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 organizations 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 organizations 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' organizations that accept legitimate foreign contributions for charitable, educational, or human rights work," he said.
He demanded that the bill must be withdrawn, and all contentious provisions that "empower the executive to seize and manage assets without judicial oversight" be withdrawn.
The CPI(M) 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.
The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha on Wednesday, significantly tightens its oversight of foreign-funded organizations, proposing the creation of a powerful new authority to seize and manage the assets of non-profits that lose their licence.