Foreign Contribution (Regulation) Amendment Bill, 2026

Foreign Contribution (Regulation) Amendment Bill, 2026
Parliament of India
Long title A Bill further to amend the Foreign Contribution (Regulation) Act, 2010
Legislative history
Bill	The Foreign Contribution (Regulation) Amendment Bill, 2026
Bill published on	25 March 2026
Introduced by	Ministry of Home Affairs
Related legislation
Foreign Contribution (Regulation) Act, 2010
Status: Pending

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. 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. As of early August 2026 the Bill remains pending before Parliament. It was listed for consideration during the Monsoon Session that began on 20 July 2026 and is scheduled to continue until mid-August, though it had not yet been taken up for debate amid disruptions over other issues.

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. In 2024–25 approximately 16,200 associations received ₹22,963 crore in foreign contributions under the FCRA regime. According to Ministry of Home Affairs data, 13,520 organisations received ₹55,741 crore between 2019 and 2022. As of 15 July 2026 the FCRA portal recorded 14,449 active certificates, 22,498 cancelled registrations and 15,212 deemed expired. Nearly 22,000 organisations had lost their FCRA registration by early 2026 through cancellation or non-renewal, leaving significant foreign-funded assets without a clear statutory framework for management under the earlier law.

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.

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. 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. Orders of the Designated Authority are subject to revision by the Central Government and appeal before a District Judge.

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.

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.

Prior permission

Foreign contribution received under the prior-permission route must be utilised within a time period prescribed for the specific purpose and source.

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. The rules also introduce a prescribed Schedule of permissible activities and exclude proselytisation from eligible religious purposes while listing other permitted religious activities such as maintenance of places of worship and religious education.

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. As of 5 August 2026 the Bill had not been taken up for debate, with the session disrupted by other controversies, though the government retained the numbers to pass it in both Houses if it chose to press for a vote.

Reactions

Government

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.

Civil society and human rights organisations

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.

Christian organisations and churches

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. In the Northeast, church bodies in Mizoram have mounted sustained opposition. The Council of Churches in Mizoram, representing nine major denominations including the Mizoram Presbyterian Church and the Baptist Church of Mizoram, announced a protest march in Aizawl on 11 August 2026, stating that certain provisions could adversely affect churches and voluntary organisations dependent on foreign assistance. The Mizoram government and state church leaders also decided to submit a joint memorandum to the Centre seeking changes to the Bill.

Political parties

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. Several opposition leaders have called for an all-party meeting to discuss the legislation before it is taken up for consideration.

International responses

On 4 August 2026 United States Congressman Riley Moore, a Republican from West Virginia, criticised the proposed amendments in a post on X, describing them as a “clear attack against Christians” and warning that they could become a point of major concern in India–United States bilateral relations. He stated that the changes would permit government takeovers of churches and religious charities despite Christianity’s long history in India dating to St Thomas the Apostle. The Vishva Hindu Parishad responded by accusing Moore of “rumour mongering” and asking him to identify the specific provisions that permit government takeover of churches or constitute an attack on Christians. VHP spokesperson Vinod Bansal stated that the amendments would curb the misuse of foreign funds for illegal religious conversion, anti-India activities and political purposes.

See also

• Foreign Contribution (Regulation) Act, 2010
• List of non-governmental organisations in India

External links

• Text of the Foreign Contribution (Regulation) Amendment Bill, 2026
• PRS Legislative Research page on the Bill
• Official FCRA website