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Onerous rules: On the amended FCRA Rules, the fallout

26 Jun 2026
2 min

Role and Challenges of Civil Society Organisations in India

Civil society organisations (CSOs) are crucial in bridging gaps in areas like health, education, disaster relief, and civil liberties, where the state may not adequately meet needs.

FCRA Amendment Rules, 2026

  • CSOs registered under the Foreign Contribution (Regulation) Act (FCRA), 2010, face new restrictions.
  • NGOs must limit their activities to specific categories and regions as per their registration.
  • There is a requirement to disclose social media handles, websites, and publications.
  • NGOs are prohibited from engaging in activities with “political content”.
  • Stringent penalties are in place for using funds for unapproved purposes.
  • Separate fees are required for each category of work and operational region, increasing compliance costs.

Government's Rationale and Criticism

  • The government claims these rules promote transparency and national security.
  • Critics argue the rules are designed to stifle NGO activities.
  • Operational transparency under the FCRA is questioned, with many registrations revoked on opaque grounds.

Judicial Perspective and Legislative Actions

  • In *Noel Harper* (2022), the Supreme Court upheld the stringent 2020 FCRA amendments, citing sovereignty and national security.
  • The Court previously distinguished between party politics and CSO activism in 2020.
  • Proposed amendments in March 2026 to allow government takeover of assets from deregistered NGOs met with protests and were put on hold.

Conclusion and Recommendations

The current rules seem aimed at restricting NGOs using foreign funds. The Centre is advised to reconsider punitive measures, particularly those related to multiple fees and political content, and adopt fairer regulations.

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Noel Harper (2022)

A significant Supreme Court case where the validity of the stringent 2020 FCRA amendments was upheld, with the court emphasizing national sovereignty and security as grounds for the regulations. This ruling has implications for the operational scope of NGOs receiving foreign funds.

Political Content

Refers to activities or expressions that relate to the political system, parties, or governance in a manner that is deemed to be influencing political opinion or action. Under FCRA rules, NGOs are prohibited from engaging in such activities with foreign funding.

FCRA Amendment Rules, 2026

Recent amendments to the Foreign Contribution (Regulation) Act, 2010, which impose new restrictions on NGOs registered under FCRA, including limitations on activities, disclosure of online presence, and stringent penalties for misuse of funds. These rules have been criticized for potentially stifling NGO operations.

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