"New FCRA Amendment Bill Raises Concerns Over NGO Asset Vesting"
FCRA
law regulating receipt and use of foreign contributions by Indian individuals, associations, and companies.
Designated authority
government-appointed custodian in whom an NGO's assets vest after FCRA cancellation or lapse.
The Foreign Contribution (Regulation) Act (FCRA) was first enacted in 1976, during a period when the government of the day feared that foreign money could be used to destabilise India's internal politics. The law was substantially revised in 2010 to widen its scope and tighten enforcement, and again in 2020, when amendments required all foreign contributions to be routed through a designated State Bank of India account in New Delhi, banned the sub-granting of funds to other organisations, and cut the ceiling on administrative expenses from 50% to 20% of the funds received. The Ministry of Home Affairs administers the Act and decides on registration, renewal, and cancellation.
The FCRA Amendment Bill, 2026 continues this long trend of progressively stricter control, even though it has been proposed by a different political dispensation than the one that passed the original 1976 law. The underlying anxiety, however, remains similar: concern that foreign capital flowing into the voluntary sector could be used for political destabilisation, selective advocacy, or, as is now explicitly voiced, religious conversion activity. This continuity across governments of different persuasions shows that FCRA is less about any one party's agenda and more about an enduring state concern over sovereignty and foreign influence in domestic civil society.
The FCRA framework works through prior registration or prior permission: any association, individual, or company wishing to receive foreign contributions must first be cleared by the Ministry of Home Affairs, after which it is subject to reporting, spending, and banking restrictions. Since 2015, registrations of 22,496 NGOs have been cancelled, leaving about 14,466 associations currently eligible to receive foreign funds. The new Bill adds a significant enforcement mechanism: if an FCRA certificate is cancelled, surrendered, or lapses, the foreign contributions received and any assets created from them vest, in the first instance, in a government-appointed "designated authority." …
Consider the following statements regarding the Foreign Contribution (Regulation) Amendment Act, 2020:
1.All foreign contributions must be received in a designated bank account with the State Bank of India, New Delhi.
2.A registered association may sub-grant a part of its foreign contribution to another FCRA-registered organisation.
3.The ceiling on administrative expenses met out of foreign contributions was reduced from 50% to 20%.
How many of the above statements are correct?
With reference to the Foreign Contribution (Regulation) Amendment Bill, 2026, match the following entities with their correct role:
List I
A.Designated authority
B.District Judge
C.Consolidated Fund of India
D.Ministry of Home Affairs
List II
1.Recipient of proceeds from sale of permanently vested assets
2.Nodal authority for FCRA registration and enforcement
3.Custodian of assets provisionally vested after cancellation
4.Appellate authority against vesting-related orders
Select the correct answer:
Under the Foreign Contribution (Regulation) Amendment Bill, 2026, which of the following statements is/are correct?
1.Permanent vesting of an NGO's assets in the designated authority occurs only if registration is not restored within the prescribed period.
2.Restoration of registration during the provisional vesting period results in return of assets and unused foreign contribution.
Select the correct answer using the code below:
Consider the following statements regarding the Foreign Contribution (Regulation) Act (FCRA):
1.It was originally enacted in 1976.
2.It has been amended twice, in 2010 and 2020.
3.It is administered by the Ministry of Corporate Affairs.
Which of the statements given above is/are correct?
Corporate Social Responsibility (CSR) spending under Section 135 of the Companies Act, 2013 mandates qualifying companies to spend at least what percentage of their average net profits of the preceding three years?
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