FCRA amendment Bill proposes new authority to take control of NGO assets after licence loss

The Centre on Wednesday introduced the Foreign Contribution (Regulation) Amendment Bill, 2026 in the Lok Sabha, proposing the creation of a powerful “designated authority” to take control of assets of NGOs whose licences are cancelled, surrendered or lapse.

The Bill was introduced by Minister of State for Home Affairs Nityanand Rai and seeks to strengthen oversight of organisations receiving foreign funds under the Foreign Contribution (Regulation) Act, 2010.

New authority to manage assets

A key provision of the proposed law is the creation of a statutory framework to govern the vesting, supervision, management and disposal of foreign contributions and assets through a designated authority.

Under the Bill, assets created from foreign contributions will vest—initially on a provisional basis—with the authority if an organisation’s FCRA registration is cancelled, surrendered or ceases.

This includes cases under Sections 14, 14A and 14B of the Act, covering cancellation, voluntary surrender and expiry or non-renewal of licences.

The government said the move aims to address gaps in the existing framework, where Section 15 provides for vesting of assets but lacks clear provisions for their management and disposal.

Around 16,000 NGOs under FCRA

According to official data cited in the Bill, about 16,000 associations are currently registered under FCRA, receiving nearly Rs 22,000 crore annually in foreign contributions.

The proposed amendments seek to plug “operational and legal gaps”, particularly in handling assets after an organisation’s licence ceases.

The Bill also proposes:

• Timelines for receipt and utilisation of foreign funds under prior permission

• Regulation of asset handling during suspension of registration

• Clear provisions for cessation of registration upon expiry or non-renewal

• Rationalisation of penalties

• Mandatory prior approval of the central government before initiating investigations

The government said these measures aim to address issues such as multiple investigations, inconsistent penalties and ambiguity in enforcement.

Govt vs Opposition positions

Responding to Opposition criticism that the Bill is “dangerous”, Rai said stricter provisions are necessary to curb misuse of foreign funds.

“It is indeed dangerous for those who engage in forced religious conversion using foreign contributions or misuse funds for personal gain,” he said, asserting that the government would act firmly against violations.

Opposition parties have expressed concerns over the expanded powers proposed under the law, particularly regarding control over assets and investigations.

The FCRA, enacted in 2010 and amended in 2016, 2018 and 2020, regulates the acceptance and use of foreign contributions and hospitality to ensure they do not affect national interest, public order or security.

The latest amendment Bill signals a further tightening of the regulatory regime governing foreign-funded organisations in India.