Amid relentless protests by the Opposition over concerns regarding minority rights and chokehold on NGOs, the BJP-led central government on Wednesday dropped a scheduled debate in Lok Sabha on a bill to amend the Foreign Contribution Regulation Act (FCRA).
According to sources cited by PTI news agency, the debate is unlikely to come up again during the Budget session of parliament, which is likely to conclude on Thursday.
Opposition parties and minority organisations, including some church heads, have raised concerns regarding the FCRA (Amendment) Bill, 2026. The Congress, CPI(M) and the Samajwadi Party slammed the bill, claiming it targets minority institutions and NGOs.
Kerala Chief Minister Pinarayi Vijayan accused the Centre of "ignoring" the concerns of minority communities over the FCRA amendment and alleged that the move was driven by "political motives."
Addressing a press conference in Alappuzha in Kerala, he said the provisions in the amendment would adversely affect minorities and institutions run by them, warning that even a failure to submit accounts could lead to attachment of their properties.
"The move has triggered grave concerns among minority communities. Several Church heads have already expressed apprehensions. However, the Union government is not considering these anxieties," he alleged.
Congress MP Manickam Tagore claimed that opposition unity forced the government to withhold the FCRA Amendment Bill for now, alleging that the move exposed its "double standards."
Congress MP Manish Tewari termed the amendments "unconstitutional."
"It is arbitrary, malafide, and capricious. It does not measure on the touchstone of constitutionality," he said.
Another Congress MP Hibi Eden said his party will oppose the bill, arguing that existing provisions are already stringent.
In a post on X, Samajwadi Party chief Akhilesh Yadav alleged that the government seeks to exert unwanted control over NGOs and turn them into its "puppets".
CPI(M) MP John Brittas alleged that the government is treating even basic information related to the regulation of NGOs under the FCRA as "secret", raising concerns over transparency and parliamentary accountability.
The bill to amend the FCRA was introduced in the Lok Sabha on March 25, with the government making it clear that individuals engaging in "forced religious conversion" through foreign funding will be targeted.
At present, approximately 16,000 associations are registered under the FCRA and receive around Rs 22,000 crore annually, according to the statement of objects and reasons of the bill.
The bill was listed for consideration and passage in the Lok Sabha on Wednesday.
But as soon as the Question Hour began at 11 am, opposition members, mainly from Kerala, started raising slogans against the provisions of the bill.
Several opposition MPs led by the Congress also staged a protest in the Parliament House complex against the bill and demanded its withdrawal.
Parliamentary Affairs Minister Kiren Rijiju said the bill seeks to protect national security and interest and asserted it was not aimed against any religion or organisation.
The move was aimed at preventing misuse of foreign contributions, Rijiju said in a bid to assuage the concerns of the opposition, as he accused the Congress and Left parties of misleading people of Kerala, which goes to polls on April 9.
He said though the bill had been listed in Wednesday's official agenda for the Lok Sabha, it was not being taken up for discussion on the day.
"I had told the Congress party yesterday that since the bill has been introduced, it has been listed for consideration and passage for Wednesday. But, today the FCRA (Amendment) Bill is not being taken up for discussion," Rijiju said.
He later told reporters that the decision was based on legislative priorities and not politics.
"This is not a political issue. Several bills have been introduced, and we take them up depending on the situation and timing. The Andhra Pradesh bill (to declare Amaravati as its capital) was urgent, which is why it was taken up today."
Kerala BJP chief Rajeev Chandrasekhar said the Centre will not proceed with the proposed amendments without addressing concerns raised by various sections, including Christians.
Defending the amendments. BJP MP Dinesh Sharma rejected the opposition's charge that the bill targets minorities.
"The government does not differentiate between minority and majority as the opposition does. National security is the government's foremost priority," he said.
Union Minister Suresh Gopi said the amendments were not targeted at any particular religion or community, but was aimed at safeguarding the interests and properties of the people of the country.
He told reporters in Thrissur that only those who violate norms need to worry.
The Catholic Bishops' Conference of India (CBCI) welcomed the move to defer the discussion, but said the organisation's concerns remain because it was only postponed.
The bill seeks to significantly tighten the oversight of foreign-funded organisations, proposing the creation of a powerful new authority to seize and manage the assets of non-profits that lose their licence.
The draft law entails a comprehensive statutory framework for vesting, supervision, management and disposal of foreign contributions and assets through a 'designated authority', including provisional and permanent vesting.
"Over the period, certain operational and legal gaps have been identified, particularly in relation to the management of foreign contributions and assets created therefrom in cases where registration is cancelled, surrendered or otherwise ceases," it said.
The bill also provides for timelines for receipt and utilisation under prior permission, regulates dealing with assets during suspension of registration, provides for cessation of certificate upon expiry, non-renewal or refusal of renewal; rationalises penalties and introduces prior approval of the central government for initiation of investigation.
(With inputs from PTI)