TRANSPARENCY AND ACCOUNTABILITY OF MINORITY INSTITUTIONS

11 Nov 2026

Tags: Polity & Constitution   Bodies   Regulatory entities

Source: The Hindu

Context: Proposed amendments to the Foreign Contribution (Regulation) Act (FCRA), 2010 have triggered concerns among civil society organisations, Opposition parties and Christian institutions.

• Government's position: Strengthen transparency, accountability and prevent misuse of foreign funds, including better regulation of assets created or acquired through such contributions.
• Critics' concerns: Legitimate charitable, educational, healthcare and social-service activities may face restrictions, with minority institutions potentially being disproportionately affected.
• The Bill has been referred to a Joint Parliamentary Committee (JPC) for further scrutiny, providing an opportunity for wider deliberation.

Need for Transparency in Minority Institutions

• Balanced regulation: Foreign contributions should not become a pretext for suppressing legitimate civil society activities, but their receipt and utilisation must remain subject to scrutiny.
• Voluntary accountability: Minority institutions should practise transparency not only towards the government but also towards their faithful, beneficiaries and other stakeholders.
• Example – Catholic Church in Tamil Nadu: Dioceses operate numerous social-service organisations serving poor and marginalised communities, but public access to their financial information, including audited accounts, income-expenditure statements and funding sources, remains a concern.
• Institutional responsibility: Institutions receiving public donations and foreign contributions should disclose how resources are utilised to strengthen public trust.

Institutional Power and Financial Accountability

• Religious organisations: The Society of Jesus (Jesuits), Salesians of Don Bosco, dioceses and congregations of women religious operate extensive educational, healthcare and social-service institutions.
• Admission-related concerns: Allegations regarding capitation fees, admission-related donations and other payments exist in parts of the education sector. Such allegations should not be treated as established wrongdoing without evidence.
• Transparency as a safeguard: Independently audited and accessible financial accounts can address concerns regarding financial mismanagement or diversion of funds.
• Suggested disclosures: Institutions should voluntarily publish audited annual accounts, broad income-expenditure statements, major funding sources and purposes of expenditure, without compromising individual confidentiality or institutional autonomy.

The Unresolved Issue of Dalit Christians

• CBCI intervention: The Catholic Bishops' Conference of India (CBCI) has submitted a memorandum to the Union Government raising concerns over the FCRA Amendment Bill and the continuing denial of Scheduled Caste (SC) status to Christians of SC origin.
• Legal demand: It has sought an early resolution of the matter pending before the Supreme Court.
• Caste discrimination within the Church: CBCI policy documents have acknowledged the persistence of caste-based discrimination both in Indian society and within the Church.
• Institutional responsibility: Despite its considerable organisational reach, financial resources and influence, questions arise regarding whether the Church has mobilised comparable efforts for the constitutional rights of Dalit Christians.
• Core contradiction: Since caste-based exclusion does not necessarily disappear upon religious conversion, the Church's advocacy for Dalit Christians should remain a central part of its public engagement.

Accountable Autonomy

• Meaning: Institutional autonomy must be accompanied by transparency and accountability towards stakeholders.
• Protection of minority rights: Minority institutions have made significant contributions to education, healthcare and social development; their freedom to function must be protected from excessive state interference.
• Mutual accountability: The state must not use transparency as a pretext to weaken legitimate minority institutions, while these institutions must not treat accountability towards their own stakeholders as optional.
• Way forward: Voluntary financial disclosures, independent audits and greater participation of beneficiaries, parents, students and communities can strengthen institutional credibility.

Relevant Constitutional and Legal Provisions

• Article 30: Grants religious and linguistic minorities the right to establish and administer educational institutions of their choice.
• Article 29: Protects the interests of sections of citizens having a distinct language, script or culture.
• Article 14: Guarantees equality before law and equal protection of laws.
• Article 25: Guarantees freedom of conscience and the right to freely profess, practise and propagate religion, subject to constitutional limitations.
• FCRA, 2010: Regulates the acceptance and utilisation of foreign contributions by individuals, associations and organisations to ensure that such contributions do not adversely affect national interest.