Amid FCRA Bill, Nalgonda diocese case pops up, scanning Canadian funds for 'Christian education' among lower-caste Hindu kids

As per LRO, the agreement was required by the Canadian government to ensure that funds spent abroad by Canadian foundations could be disbursed under strict contractual arrangements.

NewsBharati    08-Aug-2026 13:35:21 PM
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Ahead of the FCRA bill to be tabled in the Monsoon Session of Parliament on 12th August, it has come to light that churches nationwide are strongly opposing the amendment, saying that the amended rules could potentially 'impinge upon freedom of expression and religion.'

Several churches, including the Kerala Catholic Bishops’ Council (KCBC), Kerala Latin Catholic Association (KLCA), and Malankara Orthodox Syrian Church, as well as Catholic churches in Mizoram, have staged protests against the FCRA. Amid this, an old case of the Roman Catholic Diocese of Nalgonda in Hyderabad has again appeared, revealing that it had signed a special agreement with the Canada-based Mgr Joseph Chevalier Foundation to impart religion-based education to Hindu lower-caste kids.
 
Nalgonda 

"The foundation would provide Hindu lower-caste kids with accommodation, food, medicine, study, games and recreation, spiritual knowledge and religion," the agreement document signed in 2008 read. Legal activist group Legal Rights Observatory (LRO) had lodged a complaint regarding the same with the National Commission for Protection of Child Rights (NCPCR) in the year 2020 and shared the copy of the same, revisiting the case ahead of the FCRA Amendment Bill event in the Parliament.
 
 
 

As per LRO, the agreement was required by the Canadian government to ensure that funds spent abroad by Canadian foundations could be disbursed under strict contractual arrangements. These arrangements clearly defined the purpose for which the funds were provided and specified how the money must be spent, which was potentially providing the Hindu students with food, medicine, and spiritual and religious knowledge.

In a very condescending tone, the agreement stated that traditional children in lower caste families are denied access to education in India. It says, “women and especially the girl child are deprived of education, and historically evils are still perpetrated.”
 

It said that sponsoring education of a child means helping a child of one of the lower castes. The sponsoring programme seemed part of the pastoral plan of the diocese as a new way of being church.

The activist had filed a complaint at the Home Minister's Office in 2020 demanding cancellation of the FCRA licence of the Nalgonda Diocese Society. It indicated that the foreign funds received by the Catholic establishment were being misused to impart Christian religious knowledge to Hindu lower-caste kids, leading to conversion.

Notably, the Nalgonda Diocese Society has previously faced legal action for violating the provisions of Section 13(1)(c), read with Section 13(3) of the Income Tax Act for the Assessment Year 2003–04. In June 2007, tensions also reportedly prevailed when a group of Christians staged a protest demonstration in front of the residence of Bishop Govindu Joji of Nalgonda Diocese alleging that the latter had swindled Rs 150 crore of foreign funds meant for students, orphans and the aged.
 
 

As reported earlier, several missionaries and Churches are protesting against the FCRA amendment bill. On June 29, prayer gatherings took place in 'churches' throughout India to draw attention to growing opposition against FCRA. These sessions were held under the guise of the National Prayer, called by the Joint Action Forum on Minorities (JAFM), which also demanded that the Union BJP government withdraw the proposed FCRA amendment. As per the reports, churches across all denominations participated in the observance.
 
 
 

Multiple Christian churches and missionary organisations in Kerala also voiced apprehensions over the said amendment, issued by the Union Ministry of Home Affairs on June 22. These bodies alleged that certain provisions within the amended rules could potentially 'impinge upon freedom of expression and religion.' Not only churches and missionaries, but several opposition political parties like the Congress, DMK, AITC, CPIM, etc also opposed the said amendment.

Parent Foreign Contribution (Regulation) Act, 2010, not altered; just the rules tightened

It is important to note that the recent amendment proposed by the Indian government in no way alters the main FCRA itself, the Foreign Contribution (Regulation) Act, 2010. However, the Rules, which are the subordinate, delegated laws formed under the parent Act, are what have been changed.

As per the official gazette, if any religious NGO registered under FCRA wants to change its area of operation or alter any purpose from its already available registration certificate, it must seek government approval. Notably, the Central Government can then approve or reject the application after due inquiry.
 
 

This section lists 16 permitted activities that religious organisations can carry out using foreign contributions, which include, construction and maintenance of places of worship, preservation of sacred scriptures, supporting institutions studying religious philosophy, pilgrim amenities, dharamshalas and langars, religious education and meditation retreats, devotional music and theatre, documentation of indigenous faith practices, protection of sacred relics and heritage sites, archiving of religious rituals, inter-faith dialogue, religious publications and research, religious libraries and museums, faith-based counselling and de-addiction centres, training in traditional sacred crafts, and burial or cremation ground maintenance. However, any of these activities undertaken with the intention of performing proselytisation has been specifically excluded.

Licenses cancelled over misutilising foreign contributions in the past

The Foreign Contribution (Regulation) Act (FCRA) has been viewed as the most debated regulatory instrument governing India's NGO sector, but in fact, it is not. It is often characterized as a restrictive tool. However, a critical assessment must acknowledge its fundamental purpose, ensuring that foreign funds entering India's civil society ecosystem are received and utilised with full transparency.
 

Foreign contributions can legitimately support charitable, educational, and humanitarian work. At the same time, nations have a reasonable interest in monitoring how foreign money flows into domestic civil society. Most countries maintain some form of regulatory framework for this purpose, and India is no exception.

The FCRA has emerged as one of the government's principal tools for monitoring the flow and utilisation of foreign funds by NGOs and religious organisations operating in India. Over the past decade, investigations conducted under the FCRA framework have led to the suspension or cancellation of the licences of several organisations accused of violating funding norms, misutilising foreign contributions, or engaging in activities that authorities alleged were linked to unlawful religious conversion practices. The Act requires organisations receiving foreign funds to disclose their sources of funding, maintain separate accounts, and submit periodic financial reports, thereby increasing transparency and regulatory oversight.

Union Home Minister Amit Shah has consistently called for stricter FCRA regulations time and again, arguing that while genuine social service organisations have nothing to fear, some NGOs have allegedly misused foreign funds for activities detrimental to national interests, including religious conversions and other unlawful activities. In 2022, Shah stated that the government had strengthened the FCRA and cancelled the licences of certain organisations because some NGOs were allegedly involved in religious conversions, anti-national activities, and misuse of foreign contributions. According to the government, stronger compliance requirements are intended to enhance accountability, ensure transparency in foreign funding, and safeguard national interests while allowing legitimate charitable and developmental work to continue.