'Anti-people': Congress vows to oppose FCRA Bill, Venugopal accuses Centre of targeting NGOs
The Foreign Contribution (Regulation) Amendment Bill, 2026, listed for consideration during Parliament's Monsoon Session, proposes to create a government-appointed "Designated Authority" empowered to take over, manage, and dispose of assets belonging to organisations whose FCRA registration is cancelled, surrendered, or lapses without renewal.
Under the Bill, such assets would provisionally vest in the Designated Authority; if the organisation subsequently regains registration, the assets are to be returned, but if registration is not restored, the vesting becomes permanent and the Authority may use or dispose of the assets for public purposes.
The Bill also proposes a minimum-spending threshold for renewal of an FCRA certificate, under which an organisation would be deemed to have carried out reasonable activity in its chosen field if it has utilised at least ₹10 lakh of foreign contribution over the preceding two financial years.
The Bill amends the Foreign Contribution (Regulation) Act, 2010, which governs the receipt and utilisation of foreign funds by individuals, associations, and companies operating in India.
Civil society organisations and religious bodies have raised concerns that the expanded asset-management powers could increase government oversight of foreign-funded institutions; the Bill was first introduced in March 2026 and was deferred once already before being listed again for the current session.
Foreign Contribution (Regulation) Act, 2010 — Core Regulatory Framework
The FCRA, 2010 regulates the acceptance and utilisation of foreign contributions by individuals, associations, and companies in India, replacing the earlier FCRA of 1976. It requires organisations receiving foreign funds to register with, or obtain prior permission from, the Ministry of Home Affairs (the nodal authority), and prohibits certain categories of persons — including election candidates, journalists, judges, and government servants — from accepting foreign contributions.
Key Details
- Registered organisations must receive foreign contributions only through a designated FCRA account at the State Bank of India, New Delhi Main Branch.
- Section 14 empowers the Central Government to cancel an organisation's FCRA registration certificate after giving it a reasonable opportunity to be heard.
- Section 15 already provides that, upon cancellation (Section 14) or surrender (Section 14A) of registration, the foreign contribution and assets created from it vest in "such authority as may be prescribed," which may manage, utilise, or dispose of those assets, and must return them if registration is subsequently restored.
The 2026 Bill's "Designated Authority" formalises and centralises the asset-management mechanism that Section 15 of the 2010 Act already contemplates in general terms — this distinction between the existing statutory provision and its proposed elaboration is a key testable nuance.
FCRA (Amendment) Act, 2020 — Precedent for Tightened Compliance
The Foreign Contribution (Regulation) Amendment Act, 2020 tightened the 2010 Act's compliance requirements, received Presidential assent on 29 September 2020, and took immediate effect. It reduced the permissible administrative expenditure from foreign contributions, restricted the transfer of such funds between organisations, and added mandatory identity and banking requirements for office bearers.
Key Details
- Reduced the ceiling on administrative expenses from 50% (under the 2010 Act) to 20% of total foreign contribution received.
- Prohibited the transfer of foreign contribution from one FCRA-registered person or association to any other person, ending inter-NGO sub-granting.
- Made Aadhaar mandatory for all office bearers, directors, and key functionaries of an organisation seeking FCRA registration, and required a dedicated FCRA account at the SBI's New Delhi Main Branch.
- Added "public servants" (as defined under the Indian Penal Code) to the categories of persons prohibited from accepting foreign contribution under Section 3.
The 2020 amendment established the pattern of successive tightening of FCRA compliance that the 2026 Bill continues, moving from restricting fund flows and expenditure (2020) to controlling the disposition of assets after deregistration (2026).
Legislative Competence — Union List Basis of the FCRA
Parliament legislates on foreign contribution regulation under its exclusive competence over matters connected to foreign relations and national security, both of which fall within the Union List (List I) of the Seventh Schedule to the Constitution under Article 246. This is distinct from ordinary matters of association or trust regulation, which may otherwise fall under State or Concurrent List heads.
Key Details
- Article 246(1) gives Parliament exclusive power to make laws on Union List subjects, notwithstanding any overlapping State competence.
- The government's stated rationale for centralising FCRA enforcement (including asset management after deregistration) rests on this national-security and foreign-relations characterisation of foreign fund flows.
- Central government approval is generally required before state agencies initiate any FCRA-related investigation, to maintain uniform enforcement under this central framework.
This constitutional basis explains why FCRA amendments, including the 2026 Bill's asset-management provisions, can be enacted by Parliament through an ordinary law with a simple majority, unlike delimitation-related changes that require a constitutional amendment.
FCRA Renewal Thresholds and Registration Lifecycle
FCRA registration is not permanent; it must be renewed periodically, and renewal is conditional on the organisation demonstrating genuine utilisation of foreign contribution for its stated objects. The 2026 Bill proposes a specific monetary threshold for this "reasonable activity" test at the renewal stage.
Key Details
- FCRA registration certificates are typically valid for five years and must be renewed, per existing FCRA Rules, before expiry.
- The 2026 Bill proposes that utilisation of at least ₹10 lakh of foreign contribution over the preceding two financial years be treated as evidence of reasonable activity for renewal purposes.
- Failure to renew, along with cancellation or surrender, are the three triggers under which assets would vest in the proposed Designated Authority.
The renewal threshold directly determines how many organisations could face non-renewal and consequent asset vesting under the Bill's proposed Designated Authority mechanism, making it a key operative detail rather than a peripheral provision.
- FCRA, 2010: nodal authority is the Ministry of Home Affairs; foreign contributions must route through a designated account at SBI's New Delhi Main Branch.
- FCRA (Amendment) Act, 2020: administrative expenditure cap reduced from 50% to 20%; effective from 29 September 2020.
- FCRA Amendment Bill, 2026: first introduced in the Lok Sabha in March 2026; proposes a Designated Authority for managing assets of organisations with cancelled, surrendered, or lapsed registration.
- Proposed renewal threshold under the 2026 Bill: minimum utilisation of ₹10 lakh in foreign contribution over the preceding two financial years.
- Section 14 (cancellation) and Section 14A (surrender) of the FCRA, 2010 are the existing statutory triggers that Section 15's asset-vesting mechanism already addresses, ahead of the proposed 2026 amendment.