FCRA amendment bill introduced: 'Designated authority' to manage assets of NGOs that lose licence

A Bill seeking to empower a "designated authority" to take over, manage or dispose of assets created out of foreign funds by an NGO was on Wednesday introduced in Lok Sabha with the union government saying that those engaged in forced and illegal religious conversion using foreign donations will face the music.

Amid three Opposition MPs raising objections to the introduction of the Foreign Contribution (Regulation) Amendment Bill, 2026, Minister of State for Home Nityanand Rai said the Modi government will not tolerate any misutilisation of foreign funding and will take strong action against such elements.

Insisting that the Bill aims to enhance transparency and ensure proper utilisation of foreign funds, Rai countered the charges that the proposed law is "dangerous", Rai saying it is "indeed dangerous for those who engage in forced, illegal religious conversion using foreign donations, as well as to individuals who abuse foreign funding for personal and family's gain."

He said there is nothing to worry for genuine operators who go by the Constitution and law of the land and work for the betterment of the country.

Opposing the introduction, Congress' Manish Tewari said that the Bill gives sweeping and disproportionate powers to the executive without adequate Constitutional safeguards and legislative clarity. "The Bill is Constitutionally suspect," he said.

GK Padavi of Congress said the Bill further shrinks available democratic space for the civil society, which will have to work in "regulatory uncertainty and fear of punitive action". Trinamool Congress' Pratima Mandal said the Bill "dangerous" and "draconian" as all power is going to be vested with the union government.

According to the Bill, certain operational and legal gaps have been identified in the existing law, particularly in relation to the management of foreign contribution and assets created therefrom in cases where registration is cancelled, surrendered or otherwise ceases. At present, around 16,000 associations are registered and receive around Rs 22,000 crore annually.

The law provides for vesting of assets at present, but the absence of a comprehensive framework for supervision, management and disposal of such assets has led to administrative uncertainty and scope for misuse, it said.

The Bill provides for the appointment of a "designated authority" to take over, manage or dispose of assets created out of foreign funds by an NGO, which has its registration to accept foreign funds suspended, cancelled or not renewed.

After expanding the scope of who all come under “key functionaries”, the Bill also proposes to make the key functionaries liable for offences under the FCRA, unless they can provide evidence of lack of knowledge, or due diligence.

The “key functionary” could now include directors, partners, trustees, the 'karta' (head) of a Hindu Undivided Family, office‑bearers or members of the governing body or managing committee of a society, trust, trade union or association and any other person who has control over or responsibility for the management or affairs of such an organisation.