The Foreign Contribution (Regulation) Amendment (FCRA) Bill, 2026, which has been under intense scrutiny over the proposed introduction of a ‘Designated Authority’, has sparked widespread controversy. The government has sought to counter the “myths” surrounding the Bill, with the latest clarification coming from Indian Ambassador to the US Vinay Mohan Kwatra, but criticism from different quarters continues to grow.
The new bill seeks amendments to the Foreign Contribution (Regulation) Act, 2010, that regulates the acceptance and utilisation of foreign contributions by individuals, associations or companies. It states that the funds will be prohibited if found to be in ill favour of the nation and its interests.
It also mandates that entities receive an FCRA certificate to receive foreign contributions. This certificate is renewable and will expire after five years. This differs from the 1976 law in which the certificate’s validity had no time limit.
As per the Ministry of Home Affairs, 13,520 organisations received ₹55,741 crore in foreign contributions between 2019 and 2022. The FCRA portal indicates that there are 14,449 active, 22,498 cancelled and 15,212 expired FCRA certificates.
The new bill, which makes amendments to the existing legislation, was introduced by the Ministry of Home Affairs in the Lok Sabha on March 25 and is expected to be taken for discussion during the monsoon session.
The highlight among the proposed changes is the creation of a ‘Designated Authority’ that will supervise, manage and dispose of foreign contribution in case an entity’s FCRA registration is cancelled, surrendered or lapsed.
The proposed amendments to the bill include that certificate registration will cease if it is not renewed before expiry or if no application for renewal is made.
The assets from such foreign funds will initially come under the government’s ‘Designated Authority’, who is only allowed to manage and monitor the entities’ activities as required. If the entity fails to renew its registration within the specified period, the authority may take control of the assets made from these foreign assets. The authority is permitted to use these funds for public purposes. It can transfer them to ministries, departments, authorities or agencies of the central or state government.
If the certificate is restored or granted again, the ‘Designated Authority’ will return the portion of the foreign funds that have not been used.
Since the ‘Designated Authority’ comes under government control, opposition parties, religious institutions and NGOs have raised concerns about state overreach, misappropriation of privately funded infrastructure and potential targeting of minority institutions.
Government officials, however, clarify that these measures are necessary for regulatory oversight.
