Indian NGOs Face Funding Restrictions as Government Cancels Foreign Donation Registrations
NGOs lose foreign donation nod for failing to use funds
The Economic TimesImage: The Economic Times
The Indian government has started canceling registrations of non-governmental organizations (NGOs) that fail to utilize foreign donations, invoking provisions of the Foreign Contribution (Regulation) Act, 2010. This move could freeze unused funds and restrict operational autonomy for affected NGOs, as a new Bill proposes stricter regulations on foreign contributions.
- 01The Indian home ministry has canceled FCRA registrations of NGOs for not utilizing foreign funds.
- 02Affected NGOs cannot accept new foreign donations or use frozen funds.
- 03The cancellations are based on provisions of the Foreign Contribution (Regulation) Act, 2010.
- 04A proposed Bill may impose stricter regulations and limit NGOs' operational autonomy.
- 05NGOs must provide valid justifications for non-utilization of funds to avoid cancellations.
Advertisement
In-Article Ad
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.
Advertisement
In-Article Ad
The cancellation of NGO registrations will significantly restrict their ability to operate and utilize foreign funds, impacting their ongoing projects and services.
Advertisement
In-Article Ad
Reader Poll
Do you support stricter regulations on foreign funding for NGOs?
Connecting to poll...
More about Ministry of Home Affairs

India's Strategic Victory Over Naxalism: A Model for Governance
Hindustan Times • Apr 19, 2026

Indian Government Criticizes X Corp for Non-Compliance with Takedown Notices
The Indian Express • Apr 18, 2026

Census Enumerators to Begin Door-to-Door Visits in Eight Indian States and Union Territories
The Hindu • Apr 15, 2026
Read the original article
Visit the source for the complete story.



