Source: IE
Subject: Important Bills and Acts
Context: The Union government has deferred discussions on the Foreign Contribution (Regulation) Amendment Bill, 2026, following intense opposition and concerns regarding its impact on minority-led institutions.
About FCRA Amendment Bill 2026:
What It Is?
- The Bill seeks to amend the Foreign Contribution (Regulation) Act (FCRA), 2010, which governs how individuals, associations, and companies in India accept and utilize foreign donations. It introduces a stricter framework for managing assets and funds when an organization’s registration is cancelled, surrendered, or expires.
Aim: The primary objective is to streamline the management of foreign assets and ensure that inflows do not adversely affect national interest, public order, or national security.
Key Provisions Proposed:
- Creation of a Designated Authority: The Bill empowers the Central government to appoint a Designated Authority to take over, supervise, and manage foreign contributions and assets if a registration is cancelled, surrendered, or ceases.
- Expansion of Ceased Registration: A registration certificate is deemed to have ceased if no renewal application is made, if renewal is denied, or if it is not obtained before the expiry date.
- Provisional vs. Permanent Vesting:
- Provisional: Assets vest temporarily with the Authority during suspension or renewal delays; they are returned if registration is restored.
- Permanent: Assets vest permanently if the person fails to renew registration within a prescribed period or if the entity becomes defunct.
- Asset Disposal: The Authority can transfer permanently vested assets to government departments or dispose of them via sale, with proceeds credited to the Consolidated Fund of India.
- Religious Places of Worship: For places of worship, the Authority can entrust management to a prescribed person, ensuring the religious character of the site is maintained.
- Expanded Prohibitions: The Bill expands the category of persons prohibited from accepting foreign aid to include any person (not just associations/companies) engaged in news production or broadcast.
- Legal Protections and Penalties:
- Appeals: Aggrieved persons can appeal an order of the Authority to a District Judge within 90 days.
- Reduced Penalties: The maximum imprisonment for contravening the Act is reduced from five years to one year.
- Prior Approval: Central government approval is now required to initiate any investigation for offences under the Act.
