FCRA Bill sparks row in Lok Sabha
The Lok Sabha on Wednesday saw a heated debate as Minister of State for Home Affairs Nityanand Rai introduced the Foreign Contribution (Regulation) Amendment Bill, 2026, aimed at overhauling the regulatory framework for foreign-funded NGOs in India.
The legislation, cleared by the Union Cabinet last week, creates a “designated authority” empowered to seize, manage, and dispose of assets acquired with foreign contributions when an NGO’s FCRA registration is suspended, cancelled, surrendered, or not renewed.
Rai defended the bill, saying it targets misuse of foreign funds for forced religious conversions or personal gain, and stressed that around 16,000 organisations currently receive `22,000 crore annually in foreign contributions. The bill introduces fixed timelines for fund utilisation, automatic cessation of certificates, rationalised penalties, and prior Central Government approval before any investigation under the Act. It also broadens liability for trustees, directors, and governing-body members.
Critics, including Congress and Trinamool MPs, warned that the measure concentrates excessive power in the executive and could lead to quasi-expropriation of NGO assets, disproportionately affecting rights-based and policy-focused organisations. Supporters argue the amendments plug operational loopholes left after the 2020 revisions and ensure transparency, accountability, and protection against misuse, while aligning penalties with proportionality and easing judicial burden.
The 2026 Bill thus continues a trend toward centralised oversight of foreign-funded entities, balancing administrative clarity with concerns over civil-society autonomy.
