Foreign Contribution (Regulation) Amendment Bill, 2026:
The Union government is set to introduce the Foreign Contribution (Regulation) Amendment Bill, 2026, to bridge legal gaps in the management of assets created through foreign funds and to streamline the accountability of NGO functionaries.
Proposed Foreign Contribution (Regulation) Amendment Bill, 2026:
- Designated Authority for Assets: A key proposed change allows the government to appoint a “designated authority” to take over, manage, or dispose of assets created out of foreign funds by non-governmental organisations (NGOs) whose FCRA registration has been suspended, cancelled, or not renewed, addressing a previously existing legal gap.
- These could then be transferred or sold, with proceeds directed to the Consolidated Fund of India.
- The definition now includes directors, partners, trustees, karta of Hindu Undivided Family (HUF), office-bearers of societies/trusts/trade unions, and any person with control over management, making them personally liable for offences unless they prove lack of knowledge or due diligence.
- The Bill mandates that any law enforcement agency or State government must seek prior approval of the Central government before initiating investigation into FCRA-related complaints.
- Proposes fixed timelines for receipt and utilisation of foreign funds under prior permission, automatic cessation of registration upon expiry or non-renewal, and clearer rules on asset handling during suspension.
- The Bill proposes reducing the maximum imprisonment for FCRA offences from 5 years to 1 year, alongside rationalised penalties.
