Ajay Kumar at 13:23, 23 July 2026

2026-07-23T13:23:28Z

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{{Short description|Proposed legislation to amend India's foreign contribution regulation law}}
{{Use dmy dates|date=July 2026}}
{{Use Indian English|date=July 2026}}
{{Infobox legislation
|legislature = [[Parliament of India]]
|image = Emblem of India.svg
|imagesize = 125px
|imagealt = State Emblem of India
|long_title = A Bill further to amend the Foreign Contribution (Regulation) Act, 2010
|citation =
|introduced_by = Ministry of Home Affairs
|bill = The Foreign Contribution (Regulation) Amendment Bill, 2026
|bill_date = 25 March 2026
|enacted_by =
|date_passed =
|status = Pending
|related_legislation = [[Foreign Contribution (Regulation) Act, 2010]]
}}
The '''Foreign Contribution (Regulation) Amendment Bill, 2026''' is a proposed amendment to the [[Foreign Contribution (Regulation) Act, 2010]] introduced in the [[Lok Sabha]] on 25 March 2026 by the [[Ministry of Home Affairs (India)|Ministry of Home Affairs]]. The Bill seeks to create a framework for the supervision, management and disposal of foreign contributions and assets of organisations whose FCRA registration certificate is cancelled, surrendered or ceases to be valid, and to rationalise penalties under the Act.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

As of July 2026 the Bill remains pending before Parliament and has been listed for consideration during the Monsoon Session.<ref>{{cite web |title=Parliament Monsoon Session 2026: Legislative Reforms |url=https://www.scconline.com/blog/post/2026/07/20/parliament-monsoon-session-2026-legislative-reforms/ |publisher=SCC Online |date=20 July 2026 |access-date=23 July 2026}}</ref>

== Background ==
The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and utilisation of foreign contribution and foreign hospitality in India. Registration under the Act is valid for five years and must be renewed. Over the years successive governments have amended the Act and its rules to tighten monitoring of foreign funds flowing to non-governmental organisations, citing concerns of national security, sovereignty and transparency.<ref>{{cite web |title=Explained: How the FCRA regulates foreign funding and what the 2026 amendments mean |url=https://ddindia.co.in/2026/07/explained-how-the-fcra-regulates-foreign-funding-and-what-the-2026-amendments-mean/ |publisher=DD India |date=July 2026 |access-date=23 July 2026}}</ref>

In 2024–25 approximately 16,200 associations received ₹22,963 crore in foreign contributions under the FCRA regime.<ref>{{cite web |title=Government allays fears over FCRA Bill, clarifies on designated authority |url=https://www.thehindu.com/news/national/government-allays-fears-over-fcra-bill-clarifies-on-designated-authority/article71255050.ece |work=The Hindu |date=July 2026 |access-date=23 July 2026}}</ref>

== Key provisions ==
The Bill amends several sections of the 2010 Act and inserts a new Chapter IIIA dealing with vesting of foreign contribution and assets.

=== Cessation of certificate ===
An FCRA certificate ceases to be valid if it is cancelled by the Central Government, surrendered by the organisation, not renewed before its expiry, or if a renewal application is not made or is refused. Cancellation may be ordered for reasons including incorrect statements, violation of conditions of the certificate, public interest, or failure to engage in reasonable activity for two consecutive years.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

=== Designated Authority and vesting of assets ===
The Bill establishes a Designated Authority to take provisional control of foreign contributions and of assets created wholly or partly out of foreign contributions when a certificate ceases. If registration is not restored, renewed or freshly granted within the prescribed period, the vesting becomes permanent. Permanently vested assets may be transferred to government departments or agencies or disposed of by sale, with the proceeds credited to the Consolidated Fund of India.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/files/bills_acts/bills_parliament/2026/Foreign_Contribution_Bill_2026_Text.pdf |publisher=PRS Legislative Research |access-date=23 July 2026}}</ref>

Special provision is made for places of worship: the Designated Authority must ensure that their religious character is maintained and may entrust their management to prescribed persons.<ref>{{cite web |title=Government allays fears over FCRA Bill, clarifies on designated authority |url=https://www.thehindu.com/news/national/government-allays-fears-over-fcra-bill-clarifies-on-designated-authority/article71255050.ece |work=The Hindu |date=July 2026 |access-date=23 July 2026}}</ref>

Orders of the Designated Authority are subject to revision by the Central Government and appeal before a District Judge.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

=== Key functionaries ===
The definition of “key functionary” is expanded to cover directors of companies, partners of firms, trustees, the karta of a Hindu undivided family, office-bearers and any person responsible for the management or control of the organisation. Key functionaries are made liable for offences committed by the organisation unless they prove that the offence was committed without their knowledge or that they had exercised all due diligence.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

=== Penalties and investigation ===
The maximum term of imprisonment for contravention of the Act is reduced from five years to one year. No investigation into an offence under the Act can be initiated by any agency without the prior approval of the Central Government.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

=== Prior permission ===
Foreign contribution received under the prior-permission route must be utilised within a time period prescribed for the specific purpose and source.<ref>{{cite web |title=The Foreign Contribution (Regulation) Amendment Bill, 2026 |url=https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 |publisher=PRS Legislative Research |date=25 March 2026 |access-date=23 July 2026}}</ref>

== Related Rules, 2026 ==
On 22 June 2026 the Ministry of Home Affairs notified the Foreign Contribution (Regulation) Amendment Rules, 2026. These rules require registration certificates to specify the precise purpose and the state or Union Territory of operation, mandate demonstration of utilisation of at least ₹10 lakh of foreign contribution over the preceding two years for renewal, expand disclosure requirements (including social media accounts and ultimate donors), and ordinarily bar foreign nationals other than persons of Indian origin or Overseas Citizens of India from serving as key functionaries.<ref>{{cite web |title=Centre amends FCRA rules for receiving foreign funds |url=https://www.thehindu.com/news/national/centre-amends-fcra-rules-for-receiving-foreign-funds/article71134901.ece |work=The Hindu |date=June 2026 |access-date=23 July 2026}}</ref>

== Legislative history and status ==
The Bill was introduced in the Lok Sabha on 25 March 2026. Consideration was deferred amid protests by opposition parties. It has been listed among the bills to be taken up during the Monsoon Session of Parliament that began on 20 July 2026.<ref>{{cite web |title=Parliament Monsoon Session 2026: Legislative Reforms |url=https://www.scconline.com/blog/post/2026/07/20/parliament-monsoon-session-2026-legislative-reforms/ |publisher=SCC Online |date=20 July 2026 |access-date=23 July 2026}}</ref><ref>{{cite web |title=FCRA Bill 2026: Why opposition is protesting Centre’s proposed foreign funding law |url=https://www.moneycontrol.com/news/india/fcra-bill-2026-why-opposition-is-protesting-centre-s-proposed-foreign-funding-law-13980430.html |publisher=Moneycontrol |date=July 2026 |access-date=23 July 2026}}</ref>

== Reception ==
The Central Government has stated that the Bill strengthens oversight of foreign funding, closes loopholes relating to assets of organisations that lose FCRA registration, and aligns Indian practice with global standards of transparency. It has clarified that the Designated Authority deals only with assets created from foreign contributions, that places of worship retain their religious character, and that the legislation does not target any particular religious community. Union Home Minister [[Amit Shah]] assured leaders of the Catholic Bishops’ Conference of India that the Bill would not be applied retrospectively.<ref>{{cite web |title=Amit Shah assures church leaders that FCRA Bill will not be applied retrospectively |url=https://www.thehindu.com/news/national/amit-shah-assures-church-leaders-that-fcra-bill-will-not-be-applied-retrospectively/article71210969.ece |work=The Hindu |date=July 2026 |access-date=23 July 2026}}</ref><ref>{{cite web |title=FCRA bill aims to bolster oversight, not target any religion: Centre |url=https://www.hindustantimes.com/india-news/fcra-bill-aims-to-bolster-oversight-not-target-any-religion-centre-101784485934518.html |work=Hindustan Times |date=July 2026 |access-date=23 July 2026}}</ref><ref>{{cite web |title=Curbs on foreign funding not uniquely Indian, says govt, cites laws elsewhere |url=https://timesofindia.indiatimes.com/india/curbs-on-foreign-funding-not-uniquely-indian-says-govt-cites-laws-elsewhere-ahead-of-bill-to-tweak-fcra/articleshow/132567703.cms |work=The Times of India |date=July 2026 |access-date=23 July 2026}}</ref>

Civil society organisations and human rights groups have criticised the Bill and the accompanying Rules. Amnesty International has argued that the measures expand state control over the activities, operations and leadership of foreign-funded organisations and undermine the right to freedom of association.<ref>{{cite web |title=India: New foreign funding rules tighten control over civil society and undermine the right to freedom of association |url=https://www.amnesty.org/en/latest/research/2026/07/india-fcra-tighten-control-civil-society-undermine-freedom-of-association/ |publisher=Amnesty International |date=July 2026 |access-date=23 July 2026}}</ref> The Catholic Bishops’ Conference of India and other Christian bodies have expressed concern about the possible impact on charitable and educational institutions and have urged withdrawal or substantial modification of the proposals.<ref>{{cite web |title=Catholic bishops body urges Amit Shah to withdraw Foreign Contribution Regulation Amendment Bill |url=https://www.ptinews.com/story/national/catholic-bishops-body-urges-hm-to-withdraw-foreign-contribution-regulation-amendment-bill/3849721 |publisher=Press Trust of India |access-date=23 July 2026}}</ref>

Opposition parties have described the Bill as draconian. On 1 July 2026 the Kerala Legislative Assembly passed a resolution urging the Central Government to withdraw both the Bill and the Amendment Rules, citing concerns relating to federalism, constitutional rights and the functioning of voluntary organisations in the state.<ref>{{cite web |title=Kerala Assembly passes resolution urging Centre to repeal amendments to FCRA rules |url=https://www.thehindu.com/news/national/kerala/kerala-assembly-passes-resolution-urging-centre-to-repeal-amendments-to-fcra-rules/article71169404.ece |work=The Hindu |date=1 July 2026 |access-date=23 July 2026}}</ref> Several opposition leaders have called for an all-party meeting to discuss the legislation before it is taken up for consideration.<ref>{{cite web |title=Convene all-party meet on delimitation, FCRA bills: Derek O’Brien to PM Modi |url=https://theprint.in/india/convene-all-party-meet-on-delimitation-fcra-bills-derek-obrien-to-pm-modi/2990553/ |work=ThePrint |date=July 2026 |access-date=23 July 2026}}</ref>

== See also ==
* [[Foreign Contribution (Regulation) Act, 2010]]
* [[List of non-governmental organisations in India]]

== References ==
{{Reflist}}

== External links ==
* [https://prsindia.org/files/bills_acts/bills_parliament/2026/Foreign_Contribution_Bill_2026_Text.pdf Text of the Foreign Contribution (Regulation) Amendment Bill, 2026]
* [https://prsindia.org/billtrack/the-foreign-contribution-regulation-amendment-bill-2026 PRS Legislative Research page on the Bill]
* [https://fcraonline.nic.in/ Official FCRA website]

[[Category:Proposed legislation of India]]
[[Category:2026 in Indian law]]
[[Category:Foreign relations of India]]
[[Category:Non-governmental organisations in India]]

Foreign Contribution Regulation Amendment Bill 2026 - Revision history

Ajay Kumar at 13:23, 23 July 2026