Govt refers FCRA Amendment Bill to JPC as Parliament deadlock continues; Oppn says, ‘scrap the bill’
The Lok Sabha adopted a motion referring the Foreign Contribution (Regulation) Amendment Bill, 2026 to a Joint Parliamentary Committee (JPC) for further scrutiny, amid sustained disruption in the House.
The Bill, introduced in the Lok Sabha on 25 March 2026 under the Ministry of Home Affairs, seeks to amend the Foreign Contribution (Regulation) Act (FCRA), 2010.
The constituted JPC comprises 21 members from the Lok Sabha and 10 from the Rajya Sabha, and is required to submit its report by the last day of the first week of the Winter Session, 2026.
Objections raised during debate centred on provisions relating to asset vesting, personal liability of NGO functionaries, and the scope of the government's power over organisations whose FCRA registration lapses or is denied renewal.
The FCRA Framework — From 1976 to 2010 to 2020
The Foreign Contribution (Regulation) Act was first enacted in 1976, during the Emergency, amid concerns that foreign funds were being used to influence India's domestic politics, media and voluntary sector. It was repealed and re-enacted as the FCRA, 2010, which consolidated the law and introduced a formal registration and renewal regime for entities receiving foreign contributions. The FCRA (Amendment) Act, 2020 tightened this regime further.
Key Details
- FCRA, 2010 requires associations receiving foreign contribution to register under Section 11/12, with registration valid for five years and subject to renewal under Section 16.
- Section 12(4)(a)(ii) allows refusal of registration/renewal if the contribution is likely to be used for an "undesirable purpose" affecting sovereignty, public interest, or friendly relations with foreign states.
- The 2020 Amendment Act reduced the permissible cap on administrative expenses from 50% to 20% of foreign contribution utilised, mandated that all foreign contribution be received only through a designated "FCRA Account" at the SBI New Delhi Main Branch (amended Section 17), and substituted Section 7 to ban sub-granting — the transfer of foreign contribution from one FCRA-registered entity to another.
- As of mid-2026, official data records roughly 14,449 active FCRA certificates, alongside a much larger number of cancelled and deemed-expired certificates, reflecting a long-term tightening of the registration regime.
The 2026 Bill builds on this same tightening trajectory — it is the third major legislative intervention in the FCRA framework since 2010, following the significant compliance changes introduced in 2020.
Judicial Test of FCRA Amendments — Noel Harper v. Union of India (2022)
The constitutional validity of the 2020 FCRA amendments was challenged before the Supreme Court and decided in Noel Harper v. Union of India (2022).
Key Details
- A three-judge bench upheld Section 7 (ban on sub-granting), Section 12(1A) and Section 17 (mandatory SBI account) as reasonable restrictions justified on grounds of national security and public order.
- The Court held that there is no absolute or unconditional fundamental right to receive foreign contributions; Parliament may impose reasonable restrictions on such receipt in the interest of sovereignty and public order.
- Section 12A, which mandated Aadhaar as an identification document for all office-bearers/key functionaries, was read down to allow alternative identification for foreign nationals who cannot possess an Aadhaar card.
This precedent is directly relevant because the 2026 Bill again expands government control over FCRA-registered entities — through asset vesting and personal liability provisions — inviting a similar test of proportionality and reasonableness once enacted.
Joint Parliamentary Committee (JPC) as a Scrutiny Mechanism
A JPC is an ad hoc committee constituted through a motion passed in one House of Parliament and concurred with by the other, to examine a specific Bill or matter in detail before it proceeds further.
Key Details
- Composition and strength are decided afresh for each JPC; there is no constitutionally or statutorily fixed number of members. The customary ratio is roughly 2:1 in favour of Lok Sabha members.
- The JPC Chairperson is a Lok Sabha member appointed by the Speaker.
- A JPC ceases to exist automatically once it presents its report to Parliament, distinguishing it from Parliamentary Standing Committees, which are permanent bodies reconstituted annually.
- Referral to a JPC is distinct from referral to a Department-Related Standing Committee: a JPC is bill/subject-specific and typically signals a matter of unusual political or public salience (recent precedents include the JPCs on the Waqf (Amendment) Bill and the One Nation, One Election Bills).
Referring the FCRA Amendment Bill to a JPC — rather than passing it directly or sending it to the Standing Committee on Home Affairs — reflects the scale of the changes proposed and the range of stakeholder concerns (NGOs, religious and charitable trusts) that the government has indicated it wishes to have examined before enactment.
- FCRA Amendment Bill, 2026 introduced in Lok Sabha: 25 March 2026; Ministry: Home Affairs.
- JPC composition: 21 Lok Sabha + 10 Rajya Sabha members; report due by the last day of the first week of Winter Session 2026.
- FCRA, 2010 registration validity: 5 years (renewal under Section 16); registration application to be processed within statutory timelines under Section 12.
- 2020 Amendment: administrative expense cap cut from 50% to 20%; sub-granting banned (Section 7); FCRA account mandated at SBI, New Delhi Main Branch (Section 17).
- Noel Harper v. Union of India (2022): Supreme Court upheld the 2020 amendments; read down the mandatory-Aadhaar requirement under Section 12A.
- Active FCRA certificates as of mid-2026: approximately 14,449.