Lok Sabha Refers FCRA Amendment Bill to JPC for Scrutiny

• The Lok Sabha referred the FCRA Amendment Bill, 2026 to a Joint Parliamentary Committee (JPC) for scrutiny.
• The proposed Designated Authority would have the power to take possession of, manage, and eventually dispose of assets created wholly or partly from foreign contributions.
• The Bill aims to make the receipt and utilisation of foreign contributions more transparent and accountable, addressing difficulties in managing assets created from foreign contributions when an organisation loses its FCRA registration.

The proposed changes aim to make the receipt and utilisation of foreign contributions more transparent and accountable, addressing difficulties in managing assets created from foreign contributions when an organisation loses its FCRA registration.

The Lok Sabha referred the Foreign Contribution (Regulation) Amendment Bill, 2026 to a Joint Parliamentary Committee (JPC) for scrutiny. The referral came after a political standoff in the Lok Sabha on Wednesday, with Congress MP K C Venugopal opposing the Bill and demanding its withdrawal. Parliamentary Affairs Minister Kiren Rijiju rejected allegations that the Bill targeted any minority community. The JPC referral sets the stage for a detailed examination of proposed changes to the law governing foreign funding received by NGOs, charitable institutions, educational bodies, religious organisations, and other entities in India.

The FCRA Amendment Bill, 2026 proposes significant changes to the existing framework for dealing with foreign contributions and assets created from such contributions. The most notable change is the creation of a Designated Authority, which would have the power to take possession of, manage, and eventually dispose of assets created wholly or partly from foreign contributions.

The Bill also seeks to replace the existing Section 15 with a new Chapter IIIA dealing with the vesting, supervision, management, and disposal of foreign contributions and assets through a Designated Authority.

The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and utilisation of foreign contributions by individuals, associations, and companies in India. The present law dates back to 2010 and replaced the Foreign Contribution (Regulation) Act, 1976. One of the major changes introduced by the 2010 law was that FCRA registration became time-bound, with certificates required to be renewed every five years.

Entities that are not registered can receive foreign contribution through the prior-permission route for a particular purpose and from a particular source. The proposed changes aim to make the receipt and utilisation of foreign contributions more transparent and accountable, addressing difficulties in managing assets created from foreign contributions when an organisation loses its FCRA registration.

The proposed Designated Authority's power to take possession of assets created from foreign contributions has raised significant concerns among NGOs, charitable institutions, and religious groups. The vesting mechanism could impact organisations that have assets created or acquired partly from foreign contribution and partly from domestic sources.

Lawyers and compliance officers should watch for the potential implications of the proposed changes on NGOs and charitable institutions in India. The JPC referral provides an opportunity for a detailed examination of the Bill's provisions, which may lead to significant changes in the law governing foreign funding received by entities in India.

Lawyers and compliance officers should watch for the potential implications of the proposed Designated Authority's power to take possession of assets created from foreign contributions, which could impact NGOs and charitable institutions in India.

Source: Original reporting via [Source]