JPC members question Centre on foreign funds, asset takeover provisions in FCRA amendments
The Joint Parliamentary Committee (JPC) examining the Foreign Contribution (Regulation) Amendment Bill, 2026 held its first meeting
The Ministry of Home Affairs presented the proposed amendments as measures intended to improve transparency and accountability in the regulation of foreign contributions received by associations and individuals in India
Committee members raised questions on provisions relating to the powers of a proposed "designated authority" empowered to take over, manage, or dispose of assets built using foreign funds when an organisation's FCRA registration is suspended, cancelled, or not renewed
Questions were also raised on the treatment of assets built partly with foreign funds and partly with other funds, where the Bill provides for the whole asset to be taken over, subject to a separate recovery application by the affected party
The Bill remains under committee examination and has not been enacted; none of its provisions have taken legal effect
The Foreign Contribution (Regulation) Act, 2010 and its 2020 Amendment
The FCRA, 2010 regulates the acceptance and utilisation of foreign contributions by individuals, associations, and companies in India, replacing the earlier FCRA of 1976, with the stated objective of ensuring such contributions do not affect national interest. It requires registration or prior permission from the Central Government (Ministry of Home Affairs) to receive foreign contributions.
Key Details
- The Foreign Contribution (Regulation) Amendment Act, 2020 was notified on 29 September 2020 and introduced several tightening measures: mandatory Aadhaar details for office-bearers/key functionaries (new Section 12A), a mandatory FCRA account at a specified State Bank of India branch in New Delhi, a reduction of the permissible administrative expenditure cap from 50% to 20% of foreign funds received, and a near-total prohibition on sub-granting or transferring foreign contributions to other persons (amendment to Section 7)
- The 2020 amendment also expanded the category of persons barred from receiving foreign contributions to include public servants
- The 2026 Bill builds on this framework by introducing new provisions on the fate of assets created from foreign contributions once an entity's registration lapses or is cancelled
The JPC's questions on "asset takeover" concern a new layer being added to the existing 2010/2020 regulatory architecture — moving beyond regulating the flow of foreign funds to regulating what happens to assets already created from them.
Joint Parliamentary Committee (JPC) — Constitution and Process
A JPC is an ad hoc parliamentary committee, distinct from Standing Committees, constituted to examine a specific bill or issue in greater depth than is possible on the floor of the House. It is formed either by a motion adopted in one House and concurred in by the other, or through communication between the presiding officers of both Houses.
Key Details
- JPC strength is not fixed by any statute or rule; it varies for each committee and is decided at the time of its constitution
- Members are nominated by the Speaker of the Lok Sabha and the Chairman of the Rajya Sabha from their respective Houses; the Lok Sabha typically has proportionally greater representation, and the JPC Chairperson is conventionally a Lok Sabha member
- Unlike Standing Committees (permanent, reconstituted annually with fixed composition rules), a JPC is dissolved once it submits its report on the specific bill/matter referred to it
- Notable past JPCs examined the 2G spectrum allocation issue and the Bofors matter; the JPC on the Personal Data Protection Bill is a recent precedent for a legislation-scrutiny JPC
The FCRA Amendment Bill, 2026 was referred to a JPC rather than being passed directly or sent to a Departmentally Related Standing Committee, reflecting the scale of stakeholder concern (NGOs, civil society bodies) the amendments have generated; the committee's first meeting is the start of this detailed examination process.
The "Designated Authority" and Asset-Vesting Mechanism (2026 Bill)
The Bill proposes creation of a "designated authority," appointed by the Central Government, with powers to take over, manage, or dispose of foreign-funded assets of an entity whose FCRA registration is suspended, cancelled, or not renewed within the specified period, at which point such assets vest permanently with the authority.
Key Details
- Where an asset (e.g., a building) was constructed partly with foreign funds and partly with other funds, the Bill provides for the entire asset to vest with the designated authority in the first instance; the affected entity must file a separate application to recover the value of the non-foreign-funded share
- A person aggrieved by an order of the designated authority may appeal to the District Judge within 90 days of the order
- This creates an administrative-first, judicial-review-second structure broadly comparable in form (though not in statutory basis) to asset-attachment mechanisms under other economic laws, where an executive/administrative authority acts first, subject to a defined appellate remedy
- The JPC has reportedly been asked to submit its report to the Lok Sabha by the last day of the first week of Parliament's Winter Session, 2026
The scope and safeguards of the designated authority's powers — particularly the "whole asset taken over first, recovery sought later" structure — are precisely what committee members questioned the Home Ministry on at the first JPC meeting.
- Governing principal Act: Foreign Contribution (Regulation) Act, 2010; last major amendment notified 29 September 2020
- 2020 amendment: administrative expense cap reduced from 50% to 20%; mandatory FCRA account at a designated SBI branch, New Delhi
- Appeal window against a designated authority order: 90 days, to the District Judge
- JPC report deadline (as referred): last day of the first week of the Winter Session of Parliament, 2026
- Nodal ministry for FCRA administration: Ministry of Home Affairs