In a recent crackdown, the Indian government has begun canceling the registrations of several non-governmental organizations (NGOs) for failing to utilize foreign donations, as mandated by the Foreign Contribution (Regulation) Act, 2010 (FCRA). Over the past week, the home ministry has invoked Section 14(1)(e) of the FCRA, a rarely used provision, to cancel registrations of NGOs that have not utilized foreign funds received over three years ago. This decision follows a wave of show-cause notices issued in December 2025, with many NGOs unable to justify the non-utilization of funds due to a lack of suitable projects. As a result, these organizations will find their foreign currency donations 'frozen' in their bank accounts, preventing them from accepting new foreign donations or spending from their accounts. The situation may worsen if a new Bill, currently under debate, becomes law, as it proposes stricter measures for NGOs, including requiring government permission for asset transfers during periods of suspension. Experts believe that the amendments signal a shift towards a more controlled regime, necessitating NGOs to enhance compliance systems and governance frameworks.