Onerous rules, Pg8

Key Highlights:

• The Ministry of Home Affairs has notified the Foreign Contribution (Regulation) Amendment Rules, 2026, introducing stricter regulations for Non-Governmental Organisations (NGOs).
• NGOs are now required to confine their work to specific categories and the States and Union Territories named in their registration.
• The new rules mandate disclosure of social media handles, websites, and publications, and prohibit carrying "political content".
• Stringent penalties are imposed for using funds for unapproved purposes, and separate fees are required for each category of work and each operational State or Union Territory.
• These amendments are perceived by critics as measures to increase compliance costs and potentially stifle the work of civil society organisations.

Detailed Insights:

• The Foreign Contribution (Regulation) Act (FCRA), 2010, aims to regulate the acceptance and utilisation of foreign contributions to prevent activities detrimental to national interest.
• The government asserts that the amendments enhance transparency, accountability, and oversight of foreign contributions received by NGOs.
• The Supreme Court in Noel Harper v. Union of India (2022) upheld the constitutionality of the 2020 FCRA amendments, emphasizing the state's right to regulate foreign funding for national security.
• The Court had previously distinguished between party politics and rights activism, but the new rules seek to treat advocacy and "political content" as grounds for disqualification.
• A prior proposal in March 2026 to allow a government-appointed authority to take over assets of NGOs with cancelled registrations was put on hold after significant protests.
• Over the past decade, more than 20,000 FCRA registrations have reportedly been revoked on various grounds, raising concerns about transparency in the FCRA regime.

Key Concepts Involved:

• Foreign Contribution (Regulation) Act (FCRA), 2010: An Indian law regulating the acceptance and utilisation of foreign funds by individuals, associations, and companies.
• Civil Society Organisations (CSOs)/Non-Governmental Organisations (NGOs): Non-profit groups operating independently of the government, engaged in social, economic, educational, or cultural activities.
• Foreign Contribution: Any donation, delivery, or transfer of currency, security, or article by a foreign source to an Indian entity.