Congress MP KC Venugopal has urged PM Modi to withdraw the new FCRA Amendment Rules 2026, calling them ‘blackmailing tactics’ to intimidate voluntary organisations. The MHA has notified the rules to improve transparency and compliance.
Congress MP KC Venugopal has urged Prime Minister Narendra Modi to ‘immediately withdraw’ the recently notified Foreign Contribution (Regulation) Act (FCRA) Amendment Rules 2026. The senior leader alleged that the new rules are “blackmailing tactics to instil fear among people and for political benefits.”
Speaking to ANI, KC Venugopal asserted that the updated FCRA guidelines are being used to target and ‘intimidate’ voluntary organisations. He said, “I wrote a letter to the Prime Minister, the registered organisations and NGOs are being targeted by this government for political motivations and intimidation. In the name of FCRA, they want to control some institutions. These are blackmailing tactics to instil fear among people and for political benefits.”
Reiterating his demand for intervention, the Congress leader remarked, “The government should withdraw this immediately. The Prime Minister should intervene every time registered NGOs are intimidated this way.”
MHA Notifies New Rules for Transparency
Meanwhile, the Ministry of Home Affairs (MHA) notified the Foreign Contribution (Regulation) Amendment Rules, 2026, introducing a series of changes aimed at strengthening compliance, improving transparency, and streamlining the regulation of foreign contributions received by associations in India. Issued under the Foreign Contribution (Regulation) Act, 2010, the new rules came into force late on Monday from their publication in the Official Gazette.
Expanded Definition of ‘Key Functionary’
A key highlight of the amendment is the expanded definition of “key functionary,” which now includes directors of companies, partners in firms, trustees, “karta” of Hindu undivided families, and office bearers or individuals responsible for management and decision-making in organisations.
“In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation, Act, 2010 (42 of 2010), the Central Government hereby makes the following rules further to amend the Foreigr Contribution (Regulation) Rules, 2011. These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2026. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), after clause (c), the following clause shall be inserted, namely:- ‘(ca) “key functionary”, in relation to a person other than an individual, includes: (i) the Director of a company; (ii) a partner in a firm (iii) a trustee of a trust; (iv) the Karta of a Hindu undivided family; (v) an office bearer, member of the governing body, managing committee or other controlling authority of a society, trust, trade union or association of individuals; and (vi) any other officer or person, by whatever name called, who has control over, or responsibility for the management or affairs of such person.” reads the notification.
Stricter Compliance and Disclosure Norms
Organisations applying for registration will now be “required to select their intended activities from a predefined list and declare their area of operation,” and entities registered prior to the amendment must, within one year, inform the government about their activity domains and operational areas through a prescribed form.
The rules also introduced additional fees for organisations seeking to operate in multiple states or undertake multiple purposes.
Further, the government stipulated that release of subsequent instalments of foreign funds will be allowed only after at least 75 per cent of previously received funds have been utilised, subject to field verification. A new provision defines “reasonable activity” for renewal and cancellation purposes, requiring organisations to utilise a minimum threshold of foreign funds over the past two financial years to remain compliant.
The amendments also introduced a structured classification of permissible activities across sectors such as religious, cultural, economic, educational, and social domains. Additionally, organisations must now furnish detailed disclosures, including social media accounts, past financial utilisation, and governance details. New formats such as Form FC-3BB were introduced for seeking release of subsequent instalments, along with stricter documentation requirements certified by chartered accountants.
The government clarified that organisations with foreign nationals as key functionaries will generally not be eligible for registration, except in specific cases approved by authorities.
The move is seen as part of the Centre’s continued efforts to ensure greater accountability and transparency in the inflow and utilisation of foreign funds by NGOs and other entities operating in India. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)