Foreign Contribution (Regulation) Amendment Bill, 2026
Why in News?
The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on 25 March 2026 by Minister of State for Home Affairs. The bill seeks to significantly tighten the government's oversight of foreign-funded non-governmental organisations (NGOs) and the assets they create.
About
- Asset Management Gaps: The government introduced the bill to bridge legal gaps regarding what happens to assets (like land or buildings) created from foreign funds when an NGO's licence is cancelled, suspended, or not renewed.
- Introduction in Parliament: It was tabled during the Budget Session of 2026, leading to sharp debates in the Lok Sabha.
- Opposition Resistance: Opposition members have criticised the bill as "draconian" and "dangerous," arguing it grants disproportionate power to the executive to seize NGO assets without prior conviction.
- National Security Concerns: The government asserts the bill is necessary to prevent the misuse of foreign funds for activities like forced religious conversions or actions detrimental to India's sovereignty.
Key Information
- Asset Management: Creates a "Designated Authority" to manage, transfer, or sell assets created from foreign funds if an NGO's registration is cancelled, with proceeds potentially going to the Consolidated Fund.
- Expanded Liability: Extends liability for violations to key functionaries like directors and Trustees, while also requiring government approval for investigations.
- Regulatory Tightening: Implements automatic registration expiry, fixed timelines for fund utilisation, and expands restrictions on recipients, including digital news entities.
- Penalty Changes: Aims to reduce maximum imprisonment for violations from 5 years to 1 year, focusing more on civil fines.
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