Government Proposes Amendments to Foreign Contribution Regulation Bill

The Union government has introduced the 2026 Foreign Contribution Regulation Amendment Bill in the Lok Sabha, aiming to tighten control over foreign funding for NGOs. Union Minister Nityanand Rai emphasized that the amendments would empower the government to act against organizations misusing foreign funds. However, the bill has faced criticism from opposition MPs, who argue it grants excessive powers to the executive and threatens civil society's operational space. Key provisions include government control over foreign assets of NGOs with lapsed registrations and stricter regulations during registration suspensions. This move comes amid rising concerns about the impact on non-profit organizations in India.

By Narendra Chaudhary Mar 25, 2026, 17:55 IST

Introduction of the Amendment Bill

On Wednesday, the Union government presented the 2026 Foreign Contribution Regulation Amendment Bill in the Lok Sabha.

Government's Justification

During the parliamentary session, Union Minister of State for Home Nityanand Rai stated that the proposed changes would empower the government to take action against organizations that misuse foreign funding for activities like forced religious conversions or actions that contradict the Constitution and national interests.

Opposition's Concerns

Three members from the Opposition voiced their objections to the bill, labeling it as 'dangerous' and 'draconian.'

To receive foreign funds, non-profit organizations must register under the Foreign Contribution Regulation Act.

Key Provisions of the Amendment

The amendment aims to fill 'operational and legal gaps' in the 2010 Act, especially regarding organizations whose registrations have been canceled or have expired.

A significant provision allows the government to take control of an NGO's foreign funds and assets if its FCRA registration lapses. Under this framework, such assets will temporarily be managed by a government-appointed 'designated authority.' If the organization does not restore its registration, this control will become permanent, allowing the authority to utilize, transfer, or dispose of these assets for 'public purposes.'

Additionally, the bill enforces stricter regulations during registration suspensions, prohibiting NGOs from transferring or selling assets generated from foreign funds without prior approval from the central government.

Statistics on NGO Registrations

From 2016-’17 to 2021-’22, over 6,600 NGOs lost their FCRA licenses, as reported to Parliament in December 2022. In 2023, the government disclosed that 13,520 registered non-profits had received a total of Rs 55,741.5 crore in foreign contributions between 2019-’20 and 2021-’22.

Criticism from Opposition MPs

Congress MP Manish Tewari criticized the amendment bill for granting 'sweeping and disproportionate powers' to the executive without sufficient constitutional protections.

His party colleague GK Padavi expressed concerns that the bill would further limit democratic space, leaving civil society in a state of 'regulatory uncertainty and fear of punitive action.'

Trinamool Congress MP Pratima Mandal argued that the bill centralizes excessive power within the Union government.