The proposed Foreign Contribution (Regulation) Amendment Bill, 2026, has brought the Foreign Contribution (Regulation) Act, or FCRA, back into focus. The proposed changes aim to strengthen transparency and accountability in the way foreign donations are received and used in India. The need for such a law becomes clearer when cases of misuse of foreign contributions, diversion of funds and activities beyond the declared objectives of organisations come to light.
Foreign funding plays an important role in India. Thousands of organisations receive money from overseas for healthcare, education, disaster relief, scientific research, environmental protection and other social work. Such international cooperation can provide much-needed resources to communities. However, foreign contributions also involve money moving across national borders, making transparency and financial oversight important.
The FCRA is the legal framework that regulates how Indian individuals, associations, NGOs, trusts and other eligible organisations receive and use foreign contributions. It is administered by the Ministry of Home Affairs (MHA). The law does not prohibit foreign donations. Instead, it lays down conditions for receiving, using and reporting such funds.
The proposed FCRA Amendment Bill, 2026, therefore seeks to further strengthen a system that is based on transparency and accountability. While thousands of organisations continue to use foreign contributions for legitimate charitable purposes, investigations into some organisations have raised questions about whether foreign funds were being used for purposes other than those for which they were received.
Why did the Modi government suspend or cancel FCRA licences of 13 organisations?
Over the years, the government has taken action against several organisations after investigations or inspections raised allegations of financial irregularities, misuse of foreign contributions, violation of FCRA rules or activities beyond their declared objectives. The following cases show why the government argues that stronger monitoring of foreign-funded organisations is necessary.
- Satat Sampada Pvt Ltd
One of the recent cases concerns Delhi-NCR-based environmental and climate organisation Satat Sampada Pvt Ltd, whose FCRA licence was revoked in January 2026.
The Enforcement Directorate conducted searches at the organisation’s office premises, a business store and two residences in Delhi and Ghaziabad under the provisions of the Foreign Exchange Management Act (FEMA). According to official sources cited in reports, the agency was investigating the end use of foreign exchange received by the organisation from offshore NGOs and other groups.
The funds were received in the name of consultancy charges. Investigators were examining whether the foreign money was ultimately being used to influence government policies. The allegations are significant because foreign contributions are required to be used for the purposes permitted under the law and properly accounted for.
The case also highlights the wider concern around foreign-funded organisations working in sensitive policy areas such as climate, environment and development. The issue is not whether an organisation can work on such subjects, but whether foreign funds received for one purpose are being used transparently and within the limits of Indian law.
2. Advantage India and diversion of funds
Another major case involves Advantage India, a non-profit organisation associated with corporate lobbyist Deepak Talwar. The Central Bureau of Investigation (CBI) filed a chargesheet against Talwar and the organisation for violations of the FCRA.
According to the CBI, Advantage India received around ₹90.72 crore in foreign contributions between 2012 and 2016. The organisation also received donations from defence companies Airbus and MBDA.
The investigation revealed that foreign contributions meant for non-profit activities were diverted towards personal and business activities. One example cited by the investigation was foreign travel expenses of Talwar. The organisation spent ₹30.37 lakh between May 2015 and January 2016 on his foreign travel.
Investigators also said that Advantage India used its fixed deposits as security for overdraft facilities obtained by Wave Impex, a company controlled by Talwar and his family. The money was subsequently used for business operations.
Another allegation concerned medical camps. The organisation reportedly showed bills claiming that medicines worth ₹26.97 crore had been purchased from Aastha Pharma and Hind Pharma. However, the two entities told investigators that they had not dealt with the association.
The CBI also pointed that that Advantage India operated from Talwar’s premises and paid him ₹80 lakh as rent between 2012 and 2015. The agency considered this another instance of foreign contributions being used for personal benefit.
3. Operation Mobilisation India
The Operation Mobilisation (OM) India group of charities also faced allegations involving foreign contributions. The Economic Offences Wing of the Telangana Crime Investigation Department froze 26 bank accounts belonging to seven related charity organisations associated with the group.
The investigation followed a complaint by Albert Lael, a former Chief Finance Officer of OM India’s group of charities. A criminal case was registered against Christian evangelist Joseph D’Souza, his son Josh D’Souza and others.
According to the allegations, the organisations received large amounts of foreign donations for charitable activities. Investigators found that some of the money was placed in fixed deposits and subsequently diverted or misappropriated.
The freezing of the bank accounts was intended to prevent further movement of funds while the investigation continued. The authorities were also examining possible violations of the FCRA.
4. New Hope Foundation
The Home Ministry cancelled the FCRA registrations of two Christian evangelist organisations, New Hope Foundation in Tamil Nadu and Holy Spirit Ministries in Karnataka, over violations of the FCRA.
Both organisations had received foreign funding from Gospel For Asia and related entities. New Hope Foundation received more than ₹42 crore in foreign contributions between 2017-18 and 2019-20, while Holy Spirit Ministries received more than ₹49 crore during the same period.
The case came against the backdrop of earlier action against Gospel For Asia’s Indian arm and affiliates over FCRA violations. The foreign donors associated with the organisations included entities based in the US, Canada, South Africa and Finland.
The case raised questions about how large foreign contributions received by religious and charitable organisations were being utilised and whether the funds remained within the activities declared to the authorities.
5. India Rural Evangelical Fellowship
In August 2025, the Ministry of Home Affairs suspended the FCRA licence of the India Rural Evangelical Fellowship (IREF), an Andhra Pradesh-based church-linked organisation.
According to the allegations cited in the reference material, IREF received around ₹28.6 crore from its US and UK branches between 2019 and 2024. Investigators revealed that money meant for welfare activities was diverted to personal accounts.
The organisation, founded in 1972, described its work as including education, children’s hostels, evangelism and distribution of Christian literature. However, complaints submitted to the MHA coercive religious conversions, misuse of children’s photographs for overseas fundraising and violations involving foreign missionaries.
The allegations also included the use of foreign funding for political mobilisation. The Legal Rights Protection Forum had submitted a complaint to the MHA containing documentary and multimedia material relating to the allegations.
These remain serious allegations, and the action demonstrates why authorities seek to establish whether organisations are using foreign contributions strictly for their declared purposes.
6. Harvest India
The MHA also cancelled the FCRA registration of missionary organisation Harvest India over violations of the FCRA.
The organisation was accused by the Legal Rights Protection Forum of using foreign funds for missionary activities. According to the allegations, Harvest India’s foreign contributions between 2017-18 and 2019-20 amounted to around ₹19.6 crore.
Lodged complaint with FCRA Division of MHA against Mr. Kattera Suresh Kumar, Hindu (as per records) for fraudulently misrepresenting himself as Christian Bishop, running an evangelical NGO 'Harvest India' & collecting millions of $ from citizens of USA/UK/other countries. https://t.co/3tMcwYJn9q
— Legal Rights Protection Forum (@lawinforce) September 16, 2021
Reports also said that the organisation had a large network of community centres and pastors involved in evangelisation activities. The complaint raised questions about the use of foreign funds for salaries of pastors, church maintenance and other missionary activities.
The organisation’s chief functionary, Suresh Kumar, was also accused of making political and anti-Hindu remarks during a conference in the US. In one speech, he said, “Right now, we are under Hindu rule. Our Prime Minister is a bad guy.”
"Harvest India's President, Bishop Mr. K Suresh Kumar is not Christian, but a Hindu-SC", confirms Distirct Collector, Guntur, Andhra Pradesh.
— SC ST RIGHTS FORUM (@SCSTForum) September 3, 2021
We wrote to National SC Commission seeking action.
It's a Black day for SCs of the country and opens pandora's box for similar claims pic.twitter.com/NO96gFSUQv
He also appealed for prayers ahead of an election, saying, “I don’t want this party to come back.”
The allegations against Harvest India therefore involved not only financial questions but also the use of foreign-funded organisational activities for religious and political purposes.
7. Centre for Equity Studies (CES)
The Centre for Equity Studies (CES), associated with human rights activist Harsh Mander, also faced scrutiny following allegations concerning children’s homes run in association with organisations linked to CES.
BREAKING:
— Nupur J Sharma (@UnSubtleDesi) February 20, 2021
Economic offence wing of Delhi police has registered a FIR u/s 406, 409, 420, 120B of IPC Against Harsh Mander’s NGO CES and officials of CES, in which Mander holds official position of director.
The National Commission for Protection of Child Rights (NCPCR) inspected two homes, Umeed Aman Home for Boys and Khushi Rainbow Home for Girls, in October 2020.
The NCPCR reportedly found serious irregularities, including allegations of sexual abuse at the boys’ home and failures in reporting such incidents. The Commission observed that the “non-reporting of POCSO offences” could endanger the welfare of children.
The inspection also raised concerns about children being made to participate in anti-Citizenship Amendment Act protests. The Commission further questioned the presence of foreign nationals providing voluntary services at the homes.
The Delhi Police subsequently registered an FIR against CES officials and others over financial irregularities and other violations.
8. Socio Legal Information Centre (SLIC)
The Home Ministry also cancelled the FCRA registration of the Socio Legal Information Centre (SLIC), whose chairperson was former Supreme Court judge Justice Deepak Verma.
SLIC is the parent organisation of the Human Rights Law Network (HRLN), founded by senior advocate Colin Gonsalves. The organisation describes its mission as making the justice system “accessible, efficient, accountable, affordable, and pro poor.”
It works on public interest litigation, legal awareness and investigations into human rights violations.
However, the organisation and its associated network have faced allegations concerning foreign funding and involvement in campaigns on politically sensitive issues. The cancellation of SLIC’s FCRA registration therefore brought attention to the need for organisations engaged in advocacy and litigation to maintain strict compliance with foreign funding rules.
9. CARE India Solutions for Sustainable Development
CARE India, whose legal name is CARE India Solutions for Sustainable Development (CISSD), also came under scrutiny over its foreign funding and activities.
The organisation had received substantial foreign contributions. Its FCRA submissions showed foreign donations of more than ₹157 crore during the financial year mentioned in the reference material, with major donors including CARE organisations abroad, USAID and Amazon Development Centre India.
The organisation was also accused of using its association with government projects while soliciting donations. Its functionary Neera Saggi separately came under scrutiny in connection with the IL&FS financial fraud.
The reference material also alleges that CARE India transferred money to the Evangelical Social Action Forum, which received more than ₹52 lakh from CARE India in 2018-19.
The case raises a broader question: when organisations receive large foreign contributions and work closely with government programmes, their financial dealings need to remain transparent and clearly separated from activities not covered by their declared objectives.
10. Centre for Policy Research
The Centre for Policy Research (CPR), a Delhi-based public policy think tank, had its FCRA licence suspended in 2023 and later cancelled.
The action followed Income Tax Department surveys conducted in September 2022. The government also sought explanations and documents concerning CPR’s foreign contributions.
CPR’s filings showed that it received around ₹10.1 crore between October and December 2022 from foreign sources including the Bill and Melinda Gates Foundation, the University of Pennsylvania, the World Resources Institute and Duke University.
The government non-compliance with FCRA provisions, including concerns over the transfer of foreign contributions to other entities and the use of non-designated accounts.
CPR later challenged the action and said it would consider legal options. Its case illustrates that FCRA compliance also applies to think tanks and research organisations receiving foreign funds, particularly when those funds are used for policy research and public affairs.
11. Oxfam India
Oxfam India is another organisation that faced action over FCRA violations. The MHA recommended a CBI inquiry into the organisation over violations of foreign funding rules.
According to the allegations, Oxfam India continued transferring foreign contributions to other entities even after the 2020 amendment that restricted such transfers.
Union Ministry of Home Affairs has recommended a CBI probe against Oxfam India for alleged violation of Foreign Contribution (Regulation) Act 2010: Sources
— ANI (@ANI) April 6, 2023
Oxfam India was registered under the Foreign Contribution (Regulation) Act 2010 (FCRA, 2010) for undertaking “Social”…
Authorities also said that Oxfam India planned to route funds through other FCRA-registered organisations or through a for-profit consultancy structure. The government further revealed that Oxfam India transferred funds to CPR through associates and employees in the form of commission. It also received around ₹1.50 crore directly into its FCRA utilisation account rather than the designated FCRA account.
The organisation’s FCRA registration ceased in January 2022 after it failed to obtain renewal.
Another controversy involved a report on Assam’s tea industry. Investigators said that the report relied heavily on volunteer-collected data and did not include sufficient field research or the views of tea garden managements, workers’ unions and the state government. The report was later cited in connection with the US Department of Labor’s list concerning goods produced using child or forced labour.
The case raised concerns over whether foreign-funded advocacy and research could potentially affect India’s economic interests and exports.
12. Legal Initiative for Forest and Environment
The FCRA registration of environmental organisation Legal Initiative for Forest and Environment (LIFE Trust), associated with environmental lawyer Ritwick Dutta, was suspended in March 2023 and cancelled in February 2024.
The CBI that LIFE received foreign funds from US-based environmental law organisation Earthjustice and used them for legal action against coal and other infrastructure projects in India.
According to the investigation, Dutta received ₹41 lakh in foreign contributions from Earthjustice in 2013-14, while a related proprietorship received around ₹22 crore between 2016 and 2021 as professional receipts.
The government said that foreign funds were being used to support litigation intended to delay or stop development projects.
The investigation examined cases involving thermal power and coal projects in Rajasthan, Chhattisgarh and other parts of the country. The government argued that such funding arrangements could affect India’s energy infrastructure and economic interests.
LIFE, however, has described its work as being aimed at environmental democracy and improving access to information, public participation and justice in environmental matters.
13. Environics Trust
The last case is that of Environics Trust, whose FCRA registration was cancelled on 4th March, 2024.
The CBI filed a chargesheet against the organisation and its officials over violations involving foreign-funded transactions. The agency also revealed that the organisation used two forged invoices worth ₹6.50 lakh and ₹4 lakh from a company called MAA Plasto in its FCRA returns.
According to the allegations, the invoices had not been issued by the company, but were shown as expenses in returns filed for foreign fund utilisation.
The organisation was also examined over its activities relating to campaigns against coal mining and coal-fired power projects. Investigators found that foreign contributions were used to support protests against development projects.
The case highlights another important aspect of FCRA compliance: organisations must maintain genuine records and provide accurate accounts of how foreign contributions are spent.
Why the FCRA Amendement is needed
These cases are different from one another. Some involve diversion of money for personal or business purposes, while others concern political, religious, advocacy or environmental activities. The cases show why a regulatory framework for foreign contributions is necessary. Foreign funding can support genuine social work, but it can also create accountability challenges when money is moved across borders and used for purposes that are difficult to monitor.
The FCRA amendement is intended to create a traceable chain between the foreign donor, the recipient organisation and the final use of the money. Organisations receiving foreign contributions are required to register, maintain designated banking arrangements, maintain accounts and submit returns.
The law is therefore not meant to stop legitimate charitable work. Education, healthcare, disaster relief, poverty alleviation, scientific research, environmental conservation and humanitarian activities can continue through foreign funding as long as organisations follow the rules.
The core objectives of the FCRA
At its heart, the FCRA rests on five broad objectives: transparency, accountability, protection of sovereignty, enabling genuine social work and maintaining public confidence.
Transparency means that foreign contributions should be properly recorded and their source and use should be identifiable. Accountability requires organisations to maintain accounts and submit returns so that authorities can examine how the money was utilised.
The sovereignty aspect is equally important. Foreign contributions that could adversely affect India’s sovereignty, security, democratic institutions, electoral processes or public order need to be regulated. This does not mean that every foreign-funded organisation is a threat. It means that the government has a responsibility to ensure that foreign financial influence does not undermine national interests.
At the same time, the purpose of regulation should not be to obstruct genuine international cooperation. Thousands of organisations continue to receive foreign funds for legitimate humanitarian and development work. Stronger oversight can actually help such organisations by improving public confidence in the voluntary sector.
The cases discussed above show why the proposed FCRA Bill, 2026, is being presented as a measure to strengthen transparency and accountability. Foreign contributions can play a valuable role in India’s development, but the money must reach the people and causes for which it was intended.
Ultimately, the need for the FCRA is not based on the existence of foreign funding itself. It is based on the need to ensure that such funding remains transparent, traceable and accountable. A strong regulatory system can protect legitimate NGOs while making it harder for organisations to divert foreign money for personal gain, unauthorised activities or purposes that go beyond their declared objectives.
OpIndia had earlier reported that the proposed FCRA Amendment Bill is not an anti-Christian measure, but is aimed at strengthening transparency and accountability in the use of foreign contributions.
While the US has raised concerns over the treatment of Christians in India, it is important to note that the United States itself has laws regulating foreign influence and funding. The US enforces the Foreign Agents Registration Act (FARA), which requires certain individuals and organisations representing foreign interests to disclose their relationship with foreign principals and provide information about their activities and funding. The same principle of transparency applies to India’s FCRA framework.
How did the FCRA come into existence?
OpIndia had also previously reported on the history of the FCRA and argued that the Congress party, which is now criticising the Modi government’s proposed amendments, played an important role in bringing the legislation into existence.
The statutory framework used by governments to monitor, audit, suspend or cancel FCRA registrations was not created by the present government. The regulation of foreign contributions has evolved over several decades through successive laws and amendments.
The Foreign Contribution (Regulation) Act, 1976, was enacted during the Congress-led government headed by then Prime Minister Indira Gandhi. The foundation stone of the FCRA was laid during the height of the Emergency in 1976. The objective was to regulate the inflow and utilisation of foreign funds.
