Mumbai: The All India Catholic Union (AICU) has called for the complete withdrawal of the Foreign Contribution (Regulation) Amendment Bill, 2026, expressing deep concern over its alleged implications for religious freedom and institutional autonomy.
No Mere Deferral
In a press statement issued on Friday, the AICU said the Christian community would not be satisfied with a mere deferral of the Bill and demanded its full withdrawal from Parliament. The organisation also urged the Union Government to provide clear, written assurances that there would be no future attempts to control or appropriate Church assets or restrict constitutionally guaranteed religious freedoms.
AICU national president Elias Vaz stated that Church-run institutions, built over decades with community resources and global support, play a vital role in education, healthcare and social services, particularly in underserved areas. Any move to curtail their functioning, he warned, would adversely affect the wider public.
Church Institutions' Role
The Bill, introduced in the Lok Sabha on March 25, proposes to grant a designated authority sweeping powers to manage or dispose of the assets of organisations registered under the Foreign Contribution (Regulation) Act in cases of cancellation or suspension of licences. Critics argue that stricter rules could limit the functioning of NGOs and civil society, making the debate around FCRA both legal and political.
It is estimated that the total receipt of funds through FCRA is approximately Rs 22,000 crore annually, with around 16,000 organisations eligible to receive such funding. The government maintains that the amendments are intended to protect national sovereignty, ensure transparency in foreign funding, prevent misuse or diversion of funds, and improve regulatory efficiency.
FCRA Funding Scale
The AICU, however, contended that these provisions amount to a serious infringement of constitutional rights, particularly those protecting religious freedom and minority institutions. It also raised concerns about what it described as a pattern of selective enforcement of FCRA regulations since 2014, alleging that thousands of Christian organisations have been adversely affected.
The Union further pointed to a rise in incidents targeting Christians, citing over 700 reported cases in 2025, including violence, vandalism and disruption of worship. Criticising what it termed a lack of adequate response from authorities, the AICU said the situation reflected a broader failure to ensure equal protection under the law.
Proposed Measures
The organisation has proposed several measures, including an independent review of FCRA-related actions since 2014, stronger steps to address alleged hate crimes, and structured dialogue between the government and Christian leadership.
Drawing a historical parallel, Christians compared the proposed amendment to “emergency tools” used during the tenure of Prime Minister Indira Gandhi. In a letter to Minister of State for Home Affairs Nityanand Rai, senior journalist A. J. Philip noted that the original FCRA law was introduced in 1976 to curb foreign-funded civil society opposition during the Emergency, adding that the current Bill seeks to further strengthen that framework.
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