![\"'US](\"https:\/\/static.toiimg.com\/thumb\/msid-133095959,imgsize-101603,width-400,height-225,resizemode-4\/vinay-kwatra.jpg\" "\\"Kwatra")
<\/div>\n<\/div>\n<\/div>\nNEW DELHI: India’s Ambassador to the US Vinay Mohan Kwatra on Monday defended the proposed amendments to the Foreign Contribution (Regulation) Act (FCRA), saying the changes are aimed at improving transparency, governance and oversight of foreign funds.In a series of posts on X on Monday, Kwatra issued a \u201cMyth vs. Reality check\u201d on the proposed FCRA Amendment Bill, 2026, amid concerns raised by sections of civil society and a US lawmaker over the legislation.Kwatra said regulating foreign financial flows in public and political spaces was a sovereign measure driven by national security concerns and was common in several democracies.\u201cTruth: Regulation of foreign financial flows in public and political spaces is a sovereign step driven by national security concerns. It is an accepted feature of modern governance in many democracies around the world,\u201d he said.Responding to the claim that India was framing a new law to cut off foreign aid to civil society, Kwatra said the proposed legislation did not prohibit Indians from receiving foreign donations or seek to shut down law-abiding organisations.\u201cThe fact is that the law does not forbid Indians from receiving foreign donations or shut down law abiding civil society. Tens of thousands of associations are registered under FCRA and routinely receive foreign funds for health, education, disaster relief, research and humanitarian work,\u201d he said.Kwatra said the FCRA was first enacted in India in 1976 and replaced by a new framework in 2010. It was subsequently strengthened through amendments in 2016, 2018 and 2020.\u201cThe 2026 Bill and Rules are the next step in the same direction: more transparency, better governance, clearer rules,\u201d he said.\u2018FCRA does not target any religion\u2019<\/span>Kwatra also rejected allegations that the FCRA amendments “specifically target a particular religion or community.”\u201cTruth: Nothing could be farther from it. The Act applies uniformly to all organisations regardless of religion, community or ideology,\u201d he said.He added that faith-based welfare activities, including religious education, maintenance of places of worship and charitable work by organisations of all faiths, would continue to be eligible for foreign funding.\u2018Foreign money inflows have been rising\u2019<\/span>Kwatra also rejected claims that the FCRA had adversely affected NGOs and charitable organisations or that the proposed amendments would further restrict their operations.\u201cTruth: In reality, foreign money inflows into India have been rising, not falling. Foreign contributions to registered organisations grew from roughly $1.2 billion in 2010\u201311 to $2.67 billion in 2024\u201325,\u201d he said.He said India has more than 3 million NGOs, while only 14,450 have FCRA registration, arguing that the overwhelming majority of civil society organisations fall outside the ambit of the Act.\u201cFCRA does not stop anyone from accepting foreign charity, research grants or humanitarian aid. It asks three things \u2014 register, receive the money through laid down process, report what you did with it,\u201d Kwatra said.Addressing concerns that the proposed law would allow the government to seize assets of NGOs, religious charities, places of worship, hospitals and schools dependent on foreign donations, Kwatra said the provision regarding assets was not new.\u201cWhen a registration is cancelled or surrendered, foreign contributions and the assets created from them already vest in a State Government authority. This has been in force since 2010. It is not new,\u201d he said.According to Kwatra, the 2026 Bill proposes to create a designated authority to safeguard such assets and also provides a mechanism for their return if an organisation restores its FCRA registration.\u201cWhat the 2026 Bill adds is a designated authority to safeguard those assets \u2014 and a way back. If the organisation restores its registration, all assets and unused funds are returned in full,\u201d he said.He also said the proposed legislation contains specific provisions for places of worship.\u201cPlaces of worship carry their own protection. Where a cancelled association has created property connected to a place of worship, that property goes to another FCRA-registered association of the same faith to ensure continuity of worship,\u201d Kwatra said.\u2018US has FARA, FATCA\u2019<\/span>Kwatra also dismissed the argument that India was an outlier in regulating foreign funding, pointing to similar laws in other countries.\u201cTruth: The US has had FARA since 1938 and FATCA since 2010. Australia legislated in 2018, Canada in 2024. The UK’s scheme came into force in July 2025. The EU is legislating now,\u201d he posted on X.<\/p>\n Share your thoughts in the comments<\/p>\n<\/div>\n