Government lists bills to amend FCRA Act, introduce Prevention of Insults to National Honour Act
The Lok Sabha Secretariat listed the consideration and passing of the Foreign Contribution (Regulation) Amendment Bill, 2026 for the upcoming session
The listed legislative agenda also includes introduction of a bill to amend the Prevention of Insults to National Honour Act, 1971
The Foreign Contribution (Regulation) Amendment Bill, 2026 seeks to amend the Foreign Contribution (Regulation) Act, 2010, which regulates the acceptance and utilisation of foreign funds by individuals, associations, and companies in India
The bill had earlier been introduced in Lok Sabha and was previously deferred before being taken up again
Foreign Contribution (Regulation) Act, 2010 — Statutory Framework
The FCRA, 2010 regulates the acceptance and utilisation of foreign contributions by individuals, associations, and companies operating in India, with the stated objective of ensuring such funds are not used in a manner prejudicial to national interest. It replaced the earlier FCRA of 1976 and is administered by the Ministry of Home Affairs.
Key Details
- Registration under Section 12 is valid for five years; renewal must be sought under Section 16 within six months before expiry
- Section 13 empowers the Central Government to suspend a certificate for up to 180 days (extendable) pending a decision on cancellation, with grounds for cancellation laid out in Section 14
- The 2020 amendment to the Act reduced the permissible administrative expenditure from foreign funds from 50% to 20% of funds received, made Aadhaar mandatory for office bearers (Section 12A), and barred sub-granting of foreign contributions to other organisations
- Political parties, government servants, judges, and media persons are among categories barred from receiving foreign contributions under Section 3
The 2026 amendment bill builds on this existing statutory framework, adding a new institutional layer — a "Designated Authority" — to manage the aftermath of registration cancellation or suspension.
FCRA Amendment Bill, 2026 — The Designated Authority and Asset Vesting
The Foreign Contribution (Regulation) Amendment Bill, 2026 proposes creating a statutory "Designated Authority" empowered to take over, manage, or dispose of assets created using foreign contributions when an organisation's FCRA registration is cancelled, surrendered, or lapses (including non-renewal).
Key Details
- The bill inserts a new clause, Section 13(2)(c), barring an organisation from alienating, encumbering, or otherwise dealing with foreign-contribution-funded assets during suspension without prior government approval
- On cancellation, surrender, or cessation of registration, such assets provisionally vest with the Designated Authority; if the organisation fails to secure registration within the prescribed period or becomes non-operational, vesting becomes permanent
- Where an asset is funded partly by foreign and partly by domestic funds, it vests wholly with the Authority unless the organisation can demonstrate the domestic portion is separately ascertainable
- An appeal against the Authority's orders lies to the District Judge, to be filed within 90 days
This provision represents an expansion of central regulatory control over NGO assets built from foreign funding over decades, extending the state's oversight role beyond registration and fund utilisation to asset ownership itself, and has drawn commentary regarding due process and Article 300A property-right safeguards.
Prevention of Insults to National Honour Act, 1971 — Legal Framework for National Symbols
The Prevention of Insults to National Honour Act, 1971 penalises disrespect shown to India's national symbols, including the National Flag, the Constitution, and the National Anthem, in any public place or place within public view.
Key Details
- Section 2 criminalises burning, mutilating, defacing, or otherwise showing disrespect to the National Flag or the Constitution, punishable with imprisonment up to three years, a fine, or both
- Section 3 penalises intentionally preventing the singing of the National Anthem or causing disturbance to an assembly engaged in singing it
- The Act operationalises the Fundamental Duty under Article 51A(a) of the Constitution — inserted by the 42nd Constitutional Amendment Act, 1976 — which obliges every citizen to respect the Constitution, the National Flag, and the National Anthem
- The Flag Code of India, 2002 (an administrative instrument, not a statute) separately governs display and usage of the National Flag and works alongside this Act
The listed bill to amend the 1971 Act would update this decades-old penal framework for national symbols, an area of law that intersects directly with the Fundamental Duties enumerated in Part IVA of the Constitution.
Ordinary Legislative Process for Amendment Bills
Both bills follow the standard route for amending an existing central Act: introduction, listing on the Lok Sabha's Legislative Business, consideration and passing by simple majority in the House of introduction, followed by the same process in the other House, and finally Presidential assent under Article 111.
Key Details
- An amendment bill (unlike a Constitutional Amendment Bill) requires only a simple majority under Article 100(1), not a special majority under Article 368
- The FCRA Amendment Bill, 2026 was originally introduced in Lok Sabha and had been deferred from an earlier session before being re-listed for passage
- The Constitution empowers Parliament to make laws under its residuary and enumerated powers (Union List entries on foreign affairs and matters incidental to national symbols), distinct from the state or concurrent list domains
Being ordinary legislation, both bills require only a simple majority in each House to pass, unlike constitutional amendments which would need a special majority under Article 368.
- Foreign Contribution (Regulation) Act, 2010 — administered by the Ministry of Home Affairs; registration valid for 5 years (Section 12), renewal under Section 16
- FCRA 2020 amendment: cut administrative expense cap from 50% to 20%; made Aadhaar mandatory for office bearers; barred sub-granting
- FCRA Amendment Bill, 2026: introduces a "Designated Authority" and a new Section 13(2)(c) governing asset vesting on cancellation/suspension
- Appeal against Designated Authority orders: to the District Judge, within 90 days
- Prevention of Insults to National Honour Act, 1971 (Act No. 69 of 1971) — Section 2 (Flag/Constitution), Section 3 (National Anthem), punishable up to 3 years imprisonment
- Fundamental Duty basis: Article 51A(a), inserted by the 42nd Constitutional Amendment Act, 1976
- Ordinary bills require simple majority (Article 100(1)); constitutional amendments require special majority (Article 368)