&imwidth=800&imheight=600&format=webp&quality=medium "Tamil Nadu Assembly passes resolution against FCRA Bill: Why is the state opposing it?")
As the Centre plans to introduce the Foreign Contribution (Regulation) Amendment Bill, 2026, the Tamil Nadu Assembly on Tuesday (August 11) unanimously passed a resolution opposing the proposed legislation and urged the Union government to withdraw the amendments.
The resolution called for comprehensive consultations with state governments and stakeholders, including charitable, religious, educational, medical and social organisations.
According to the government, the proposed legislation seeks to amend the Foreign Contribution (Regulation) Act, 2010, to strengthen administrative oversight, curb financial misuse and prevent foreign funds from being used against national security interests or for forced religious conversions.
The Bill proposes to create a central Designated Authority that would take over the management of an organisation when its FCRA registration gets cancelled, surrendered or ceases to remain valid due to non-renewal.
An FCRA certificate automatically becomes invalid if an organisation fails to apply for renewal before its five-year validity expires. The proposed framework would then allow the government to take control of the organisation's assets.
Critics, however, argue that the creation of a Central government-appointed Designated Authority could give the executive broad and unchecked powers to take custody of foreign funds and immovable assets, including schools, hospitals and community facilities.
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Why Tamil Nadu is opposing the Bill
Tamil Nadu Minister Rajmohan told the Assembly that the proposed provisions could adversely affect educational institutions run by minority organisations and other charitable institutions.
"The Union Government has introduced the Foreign Contribution Regulation Bill in Parliament to regulate international aid legally. Because of this, educational institutions run by minority organisations and others are being affected. Cancellation of registration and cancellation of renewal are also impacting them," Rajmohan said.
He said the proposed changes could have implications for institutions working in education, healthcare and social welfare.
"Hospitals, elderly care homes, and educational institutions will be affected through FCRA. The Tamil Nadu government objects to this," the Minister said.
Rajmohan stressed that regulatory procedures governing such institutions must comply with constitutional principles.
"Regulatory procedures must be in accordance with the Constitution," he said.
The Minister also objected to provisions that would allow the government to take over, manage, dispose of, or sell the assets of charitable organisations after the cancellation, non-renewal, refusal, or surrender of their FCRA registration.
He said institutions facing such action should receive an opportunity to present their case before authorities take any decision.
"The institutions that are being handed over to the government must be given an opportunity. If there are no charges against that institution, it should not be taken over through FCRA," Rajmohan said.
