The Foreign Contribution Act has been criticized internationally for restricting the right of nongovernmental organizations to freely seek and receive financial and other resources for their management and activities.
UN special rapporteur on human rights defenders, Margaret Sekaggya, visited India in 2011, and expressed concerns that the act could lead to abuse by the authorities when reviewing applications of groups critical of the government. Sekaggyarecommended that the National Human Rights Commission “monitor the denial of registration and permission to receive foreign funding for NGOs,” with a view to amending or repealing the law.
India is setting a bad precedent in the region because several other countries are contemplating laws similar to India’s to restrict advocacy groups, Human Rights Watch said. It called on the Indian authorities to investigate all denials, delays and cancellation of Foreign Contribution Act requests, and to reverse all decisions that are arbitrary, illegitimate, or influenced by political interests.
Just because there are some bad apples, you should not destroy the whole orchard.