When the first FCRA was passed in 1976, fear was foreign destabilisation of civil society. The proposed FCRA Amendment Bill, 2026, revives that fear with a sharper edge — religious conversion, particularly by Christian organisations that receive larger share among religious associations, per government claim.
The Bill says if FCRA certificate is cancelled, surrendered or lapses, foreign contributions and assets created from them will vest in a government-appointed designated authority. Restoration within prescribed period returns them; otherwise they can be sold, proceeds to Consolidated Fund of India, with appeal to District Judge.
Government narrative: thousands of crores pour under banners of development, bypassing accounting into politically charged campaigns and proselytization. NGOs counter that this reverses natural justice — provisional vesting punishes without conviction, and asset forfeiture will chill human rights, welfare work.
Opposition and Christian groups have stalled enactment. The underlying apprehension is similar across 50 years: sovereignty vs civil society. But the 2026 version adds economic teeth — not just blocking funds, but taking what was built with them. That turns regulation into expropriation, and a compliance law into a political weapon.