PolityGS2

FCRA Amendment Bill 2026 referred to Joint Parliamentary Committee amid protests

The Hindu·2026-08-13· Read original

"FCRA Amendment Bill 2026 referred to Joint Parliamentary Committee amid protests"

Prelims Facts

  • •FCRA was first enacted in 1976 (Emergency era); replaced by FCRA, 2010, administered by the Ministry of Home Affairs.
  • •2020 FCRA Amendment: administrative expense cap reduced from 50% to 20%; sub-granting to other organisations prohibited; all foreign contributions must flow through SBI Main Branch, New Delhi.
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Key Terms

Foreign Contribution

any donation, delivery, or transfer of currency, article, or security made by a foreign source to an Indian person or organisation.

Sub-granting

transfer of received foreign funds from one registered FCRA organisation to another; prohibited by the 2020 Amendment.

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Study Note

BackgroundCore Concept

Background

The Foreign Contribution (Regulation) Act (FCRA) has its origins in 1976, enacted during the Emergency period primarily to prevent foreign powers from influencing Indian politics through financial flows. It was comprehensively replaced by the FCRA, 2010, which established a modern regulatory framework: organisations receiving foreign contributions must register with the Ministry of Home Affairs (MHA), maintain designated bank accounts, and use funds strictly for stated purposes. The constitutional basis lies in Article 19(1)(c) (freedom of association), subject to the reasonable restrictions permissible under Article 19(4). Critics have long noted that the law's Emergency-era DNA leans toward executive control over civil society rather than transparent, rule-bound regulation.

The regime was significantly tightened by the FCRA (Amendment) Act, 2020, which prohibited sub-granting of foreign funds to other registered organisations, mandated that all foreign contributions be received exclusively through a designated State Bank of India, Main Branch, New Delhi account, reduced the administrative expense cap from 50% to 20% of total foreign funds, and required prior permission for any change in key functionaries. The Supreme Court in Noel Harper v. Union of India (2022) upheld all 2020 amendments as valid exercises of sovereignty, holding that no fundamental right to receive foreign funds exists. The 2026 Bill now proposes to go considerably further, prompting widespread institutional and civil-society opposition.

The Topic Explained

Under the FCRA, 2010, registration is valid for five years and must be renewed. The 2026 Bill introduces a qualitatively new category of consequence: automatic asset forfeiture triggered not only by cancellation of registration but also by lapse — that is, when renewal is refused, not applied for, or not granted before the old certificate expires. The moment any of these events occurs, the organisation's foreign funds and all assets built with them pass automatically to a government-designated authority, without any prior hearing for the organisation.

The Bill's asset-forfeiture mechanism has several features that legal scholars find constitutionally problematic. First, it applies to mixed-funding assets: a building constructed only partly with foreign money is taken over in full, with the organisation required to apply separately to recover the domestically-funded share. …

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Related PYQs

2024GS1 Prelims

Which of the following statements are correct in respect of a Money Bill in the Parliament?

1.Article 109 mentions special procedure in respect of Money Bills.

2.A Money Bill shall not be introduced in the Council of States.

3.The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it.

4.Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha.

Select the answer using the code given below:

A1 and 2 only
B2 and 3 only
C1, 2 and 3
D1, 3 and 4
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2024GS1 Prelims

With reference to the Indian Parliament, consider the following statements:

1.A bill pending in the Lok Sabha lapses on its dissolution.

2.A bill passed by the Lok Sabha and pending in the Rajya Sabha lapses on the dissolution of the Lok Sabha.

3.A bill in regard to which the President of India notified his/her intention to summon the Houses to a joint sitting lapses on the dissolution of the Lok Sabha.

Which of the statements given above is/are correct?

A1 only
B1 and 2
C2 and 3
D3 only
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Practice MCQs

Politymedium

With reference to the Foreign Contribution (Regulation) Act (FCRA), 2010, and its subsequent amendments, consider the following statements:

1.The FCRA, 2010, replaced the original FCRA enacted in 1976.

2.The 2020 Amendment reduced the permissible administrative expense from 50% to 20% of total foreign funds.

3.The 2020 Amendment permitted sub-granting of foreign funds between two organisations both registered under FCRA.

4.The Supreme Court in Noel Harper v. Union of India (2022) struck down the mandatory SBI New Delhi account requirement.

Which of the statements given above is/are correct?

A1 and 2 only
B1, 2 and 4 only
C2 and 3 only
D1, 3 and 4 only
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Polityhard

The Foreign Contribution (Regulation) Amendment Bill, 2026, proposes that when an organisation's FCRA registration lapses due to non-renewal, its foreign-funded assets will:

1.Be transferred automatically to a government-designated authority.

2.Be returned only if the organisation re-registers within a government-specified period.

3.Be subject to a mandatory prior hearing before the transfer takes effect.

4.Be recoverable through an appeal against the renewal refusal itself.

Which of the statements given above is/are correct?

A1 and 2 only
B2 and 3 only
C1, 2 and 4 only
D3 and 4 only
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Polityeasy

Consider the following assertion and reason:

Assertion (A): The Foreign Contribution (Regulation) Act, 2010, requires all foreign contributions to be received through a designated State Bank of India branch in New Delhi.

Reason (R): This requirement was introduced by the FCRA (Amendment) Act, 2020, and was subsequently upheld by the Supreme Court of India.

Which one of the following is correct?

ABoth A and R are true, and R is the correct explanation of A.
BBoth A and R are true, but R is not the correct explanation of A.
CA is true but R is false.
DA is false but R is true.
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Politymedium

Which of the following constitutional provisions is most directly relevant to evaluating the validity of restrictions imposed by the Foreign Contribution (Regulation) Act on civil society organisations?

AArticle 14 — Right to Equality
BArticle 19(1)(c) read with Article 19(4)
CArticle 21 — Right to Life and Personal Liberty
DArticle 32 — Right to Constitutional Remedies
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