Govt Defends FCRA Amendments: Cites Global Precedents on Foreign Funding Regulation
NEW DELHI: The Union Home Ministry on Wednesday issued a background note defending the Foreign Contribution Regulation (Amendment) Bill, 2026, ahead of its introduction in Parliament. The government argued that regulating foreign funding is not a uniquely Indian approach, citing similar laws in the United States, the United Kingdom, Australia, and Canada.
The ministry stated that unregulated foreign money can affect democratic institutions, electoral processes, and public discourse, a concern recognised globally. It pointed to the US Foreign Agents Registration Act (FARA), which requires registration and disclosure for those acting on behalf of foreign principals in political or lobbying activities. Similarly, the UK's 2025 Foreign Influence Registration Scheme provides for up to two years' imprisonment for political influence arrangements with foreign powers. The European Union has also proposed transparency registers for lobbying on behalf of non-EU governments.
Responding to criticism that the FCRA 'bans' non-governmental organisations (NGOs) from receiving foreign funds, the ministry clarified that 16,200 associations were actively registered in 2024-25 and received Rs 22,963 crore in foreign contributions. It denied that the law targets any specific religion or community, noting that faith-based welfare activities remain eligible for foreign funding.
The proposed amendment includes a provision allowing the government to seize assets of NGOs whose FCRA registration has been cancelled. The ministry said that a designated authority would manage assets created from foreign funds only after the lawful cessation of registration. Places of worship will retain their religious character, and there is a provision for appeal against such decisions.
On the restriction of foreign nationals from holding key positions in FCRA-registered entities, the government said this ensures that foreign contributions are governed by persons with a verified connection to India. It also defended the mandatory central approval for state-level investigations under FCRA, stating that the law is a central enactment.
The ministry emphasised that the FCRA ensures foreign money enters India through a registered, accountable, and disclosed channel, while enabling thousands of organisations to carry out legitimate and impactful work.
