The government has put on hold the Foreign Contribution Regulation Amendment Bill, 2026 amid Opposition protests, with the proposed law triggering concern over provisions that would allow the Centre to take control of assets created through foreign funding.
The Bill was not introduced in the Lok Sabha on Wednesday as scheduled, following disruptions in the House and growing political opposition.
At the heart of the controversy is a key provision that enables the government to assume control over foreign funds and assets of organisations found in violation of FCRA rules or whose registration lapses.
Under the proposed law, if an organisation’s registration is cancelled, surrendered, expires or is not renewed, its foreign funds and assets would be transferred to a designated authority. These assets could eventually come under full government control.
The government may also transfer such assets to its departments or sell them, with proceeds deposited in the Consolidated Fund of India, a move seen as one of the strictest changes proposed in the law.
The Bill proposes that FCRA registration would automatically lapse if renewal is not sought or is rejected, after which organisations would be barred from receiving or using foreign funds.
It also empowers the government to set timelines for utilisation of foreign contributions, preventing funds from being held indefinitely.
During suspension, organisations would not be allowed to sell, transfer or mortgage assets created through foreign funding without prior approval.
Another provision requires prior clearance from the central government before any investigation into FCRA violations can begin, tightening control over the process.
The amendments also expand accountability to key functionaries, including directors, trustees and office bearers. At the same time, the maximum punishment for violations is proposed to be reduced to one year in jail, or a fine, or both.
If an organisation shuts down or becomes inactive, its foreign-funded assets would be permanently taken over by the designated authority.
The sweeping nature of these provisions has sparked protests from Opposition parties, particularly with concerns over control of NGO assets and the broader impact on civil society organisations.
The issue has gained traction in Kerala, where political parties have accused the government of targeting organisations ahead of elections.
Responding to the controversy, Union Parliamentary Affairs Minister Kiren Rijiju accused the Congress and Communist Party of spreading “misinformation” about the Bill.
“There is indeed misinformation being spread about the FCRA,” he said, adding that the amendments are aimed at regulating foreign contributions and ensuring their use in the national interest and national security.
“It is not against any religion or organisation. Congress and the Communist Party are misleading the people of Kerala in view of the elections,” Rijiju said.
He also said he had informed senior Opposition leaders that the Bill would not be taken up in the House on Wednesday.
Source: India Today