FCRA amendment bill to introduce a new authority to manage assets of NGOs that lose licence

The FCRA amendment bill aims to create an authority for managing NGO assets after license loss, addressing misuse of foreign funds.

A legislation brought by the government to amend the Foreign Contribution (Regulation) Act (FCRA) will significantly tighten its oversight of foreign-funded organisations, proposing the creation of a powerful new authority to seize and manage the assets of non-profits that lose their licence.

The FCRA Bill, 2026, introduced in Lok Sabha by Minister of State for Home Affairs Nityanand Rai on Wednesday, also sought a comprehensive statutory framework for vesting, supervision, management and disposal of foreign contributions and assets through a 'designated authority', including provisional and permanent vesting.

At present, approximately 16,000 associations are registered under the Act and receive around ₹22,000 crore annually, the statement said.

According to the statement of objects and reasons, the proposed law seeks to provide timelines for receipt and utilisation under prior permission. It provides for the cessation of the certificate, regulating the handling of assets during suspension, rationalising penalties and requires prior approval of the central government for the initiation of investigation.

Countering the Opposition's charges that the bill is "dangerous", Mr. Rai asserted that it is "indeed dangerous" for those who engage in forced religious conversion using foreign contributions, as well as for individuals who abuse foreign funding for personal gain.

"The Modi government will not tolerate any misutilisation of foreign funding and will take strong action against such elements," he said.