FCRA Amendment Bill: Key Provisions Explained as It Moves to Joint Committee

The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced by the Bharatiya Janata Party-led government, has been referred to a Joint Parliamentary Committee (JPC) after strong protests from various quarters. The Bill seeks to amend the Foreign Contribution (Regulation) Act (FCRA), which governs the acceptance and use of foreign funds by Indian organisations.

The Bill comes two years after the 2020 amendments to the FCRA, which barred registered organisations from passing funds to other bodies—even those registered under the same Act—and reduced the share of foreign funds that could be spent on administrative expenses from 50% to 20%. The new Bill proposes further restrictions, particularly around the lapse of registration certificates.

Under the Bill, a donee organisation can lose its registration not only when the government cancels it, but also when renewal is refused, not applied for, or not granted before the existing certificate expires. In such cases, the organisation's foreign funds and any assets built with those funds would automatically transfer to a government-designated authority. The property would be returned only if the organisation re-registers within a period that the government has yet to specify. If re-registration does not happen within that period, the property is lost permanently.

One notable provision concerns buildings or assets constructed partially with foreign money. If a building was funded partly with foreign contributions and partly with domestic funds, the entire building would be taken over initially. The organisation would then have to apply to reclaim the portion that was not paid for with foreign money.

The Bill also places significant limits on the right to appeal. An organisation can appeal to a district judge only against the actions of the authority after the property is taken over. The refusal to renew the registration cannot be appealed. Additionally, the organisation is not entitled to be heard before the refusal is made. Since the authority acts on the instructions of the central government, critics say this allows the government to withdraw a licence for reasons that need not be disclosed, take over the property, and then direct the authority that now holds it.

These provisions have alarmed minority religious institutions, particularly Christian organisations that run thousands of schools, colleges, and hospitals built and sustained with funds from churches and congregations abroad. In Aizawl, Mizoram, hundreds of people marched under a newly formed council of churches. Organisations in Kerala have also objected to the Bill. Nagaland's Chief Minister wrote to the Union Home Minister seeking a parliamentary review, and the Tamil Nadu Assembly unanimously resolved that the Centre should withdraw the Bill.

In response to these protests, the Union Home Minister assured church leaders that the Bill would not apply retrospectively. However, the text of the Bill as introduced does not explicitly include such a provision. This has led to concerns that an asset built decades ago could still be taken over today if the organisation's registration certificate lapses.

The Bill has now been sent to the Joint Parliamentary Committee for further scrutiny. The JPC has the opportunity to redraft the Bill to address some of the concerns raised. Organisations and legal experts have suggested that the Bill should provide an opportunity for the organisation to be heard before renewal is refused, as well as a right to appeal against such a refusal. Other changes could make the regulation fairer and more transparent, such as defining the period within which re-registration must occur and clarifying the process for reclaiming assets.

As the JPC begins its review, the debate over the FCRA Amendment Bill highlights the delicate balance between regulating foreign contributions and ensuring that legitimate organisations, especially those in education and healthcare, are not unduly hindered. The committee's recommendations will be crucial in determining whether the Bill, in its final form, addresses these concerns while meeting the government's stated objectives of transparency and accountability.