Union Home Minister Amit Shah is expected to move the Foreign Contribution Amendment Bill, 2026, for consideration in the Lok Sabha on Monday, placing tighter oversight of foreign-funded organisations at the centre of the government’s legislative programme.
The Bill was introduced in the Lower House on March 25 by Minister of State for Home Affairs Nityanand Rai on Shah’s behalf. Its return for debate and possible passage comes amid opposition from civil society organisations, church groups and political parties, which fear that the proposed framework will give the Centre sweeping control over assets acquired through foreign donations.
The legislation seeks to amend the Foreign Contribution Act, 2010, which governs the receipt and use of overseas contributions by associations, charitable institutions and non-governmental organisations. The government maintains that the changes are required to close regulatory gaps and prevent foreign money and assets from being misused after an organisation loses permission to receive such funding.
A key provision would establish a designated authority to supervise, manage and dispose of foreign contributions and assets when an organisation no longer holds a valid FCRA certificate. This could occur when registration is cancelled, surrendered or allowed to expire, or when a renewal application is rejected.
Assets created wholly or partly through foreign contributions could vest in the designated authority. The authority would be empowered to administer, transfer or sell them under conditions prescribed by the government. Organisations could seek restoration of the assets if their registration was subsequently revived, though the proposed process and applicable safeguards have drawn scrutiny.
The Bill contains a special clause covering places of worship. The designated authority would be required to preserve the religious character of such properties while exercising its powers. Government officials have argued that this protection demonstrates that the legislation is not aimed at any faith or community.
Opposition parties and several Christian organisations remain unconvinced. They contend that the measure could disrupt schools, hospitals, charities and welfare programmes operated by religious and voluntary bodies. Critics have also questioned whether the proposed authority would enjoy sufficient independence and whether organisations would receive adequate opportunities to challenge asset-control decisions.
The government has rejected claims that the Bill targets minority institutions. Its position is that overseas contributions must remain traceable and that properties built from such funds cannot be left without accountable management when an organisation’s authorisation ends.
The proposed law also tightens provisions governing foreign contributions received through prior permission. Such permission is generally granted for a specified donor, purpose and amount. The amendments seek to prescribe timelines for receiving and using the money, extending restrictions introduced through administrative directions and bringing them expressly into the statute.
FCRA regulation has grown progressively stricter over the past decade. Organisations receiving foreign contributions must hold registration or obtain prior permission, use designated bank accounts, maintain detailed records and submit annual returns. Transfers of foreign contributions from one registered organisation to another are prohibited, while administrative expenditure is ordinarily capped at 20 per cent unless the government grants approval.
The Centre has cancelled or declined to renew thousands of FCRA registrations over compliance failures, incomplete filings and alleged violations. Supporters of stronger controls say foreign funding can influence political activity, religious conversion campaigns or projects affecting national security. Civil society groups argue that complex compliance requirements and executive discretion have forced legitimate organisations to reduce operations or close programmes.
Monday’s proceedings are also expected to unfold against continued opposition protests over examination paper leaks and police action against youth demonstrators. Disruptions during the Monsoon Session have already curtailed debate on several measures and allowed some legislation to be passed amid slogan-shouting.
(IPA Service)
