SDPI Criticises FCRA Amendment Bill 2026 as Draconian and Unconstitutional

Mohammad Shafi, National Vice President of the Social Democratic Party of India, has strongly criticised the proposed Foreign Contribution Regulation Amendment Bill 2026, calling it draconian, unconstitutional, and deeply damaging to minority rights and the autonomy of civil society organisations. Introduced in the Lok Sabha on March 25 by Nityanand Rai following Union Cabinet approval, the bill seeks to create a new Chapter IIIA establishing a designated authority with sweeping powers to take provisional and permanent control over foreign contributions and assets. These powers would extend even to properties that are only partly funded through foreign sources when an organisation’s registration is cancelled, surrendered, delayed, expired, or not renewed. Shafi warned that such provisions amount to executive overreach and violate constitutional protections, including Article 300A, by allowing the seizure of community properties and funds without adequate legal safeguards before they are eventually transferred to the Consolidated Fund of India.

Shafi argued that the bill delegates excessive authority to the central government by leaving key matters such as asset management timelines, exemptions, appeals, and investigation approvals to be decided through executive rules rather than parliamentary scrutiny. According to him, this effectively reduces Parliament to a mere formality while concentrating executive, adjudicatory, and quasi judicial powers in a single body. He also criticised the expanded definition of key functionaries, which could impose personal liability on trustees, directors, office bearers, and committee members. Combined with automatic cessation clauses and the requirement of prior government approval for investigations, he said the proposed amendments would create fear and uncertainty among thousands of organisations that collectively receive around ₹22,000 crore in foreign contributions every year.

He further maintained that the bill would disproportionately affect minority institutions involved in education, healthcare, and welfare work for marginalised communities while being justified in the name of preventing misuse of foreign funds. Echoing concerns raised by church groups and opposition parties, Shafi called for the immediate withdrawal of the contentious provisions and demanded broader consultation with stakeholders. He warned that without stronger safeguards, the amendments would shrink democratic space, weaken minority autonomy, and centralise state control in a manner harmful to social harmony and genuine social justice work.