Opposition seeks rollback of new FCRA Rules, flags ‘overreach’ and impact on civil society

Congress general secretary (organisation) K.C. Venugopal and Communist Party of India (Marxist) Rajya Sabha leader John Brittas have written to Prime Minister Narendra Modi and Union Home Minister Amit Shah, respectively, seeking the withdrawal of the recently notified Foreign Contribution (Regulation) Amendment Rules, 2026, arguing that the changes will adversely affect the functioning of civil society organisations.

Also read | FCRA rules mark shift from regulating foreign contribution to voluntary organisations: CPI(M)

The new rules, notified on June 22, require non-government organisations (NGOs) to register under one of five categories — social, economic, educational, cultural, and religious — with separate activity lists prescribed for each. Organisations must also disclose details of their activities, geographical scope, websites, social media accounts and publications, and pay separate fees for each category and State or Union Territory in which they operate.

In his letter to Mr. Modi, Mr. Venugopal said the amendments amount to an attempt to curb the independence of NGOs. “These rules are an overt and systemic assault on India’s civil society, designed not to regulate, but to strangulate the non-governmental organizations (NGOs) that form the backbone of our grassroots developmental and social welfare frameworks,” he wrote.

He argued that forcing NGOs to choose from a “rigid, government-mandated list” of activities and restricting their operational geography would undermine their ability to respond to emergencies. He also objected to the imposition of separate fees and penalties, describing them as “an administrative toll-tax designed to discourage pan-India social work.”

Mr. Venugopal further criticised provisions mandating disclosure of digital presence, saying these reflected “a mindset of mass surveillance,” and alleged that the rules would “convert an independent civil society (NGO) into a terrified, government controlled echo chamber.” He urged the Prime Minister to withdraw the rules and initiate consultations with stakeholders.

In a separate letter to Home Minister Mr. Shah, Mr. Brittas raised constitutional concerns, arguing that the amendments go beyond financial regulation and alter the nature of oversight over voluntary organisations. “Collectively, these changes signify a decisive shift from regulating foreign contribution to regulating voluntary organisations themselves,” he wrote.

Mr. Brittas said the rules introduce vague and undefined terms such as “proselytisation,” which could lead to arbitrary interpretation and have a “chilling effect on the legitimate exercise of constitutional freedoms.” He also flagged expanded reporting requirements, stating that they “extend regulatory scrutiny into the sphere of institutional communication, expression, thought, and digital presence.”