The Foreign Contribution (Regulation) Amendment Bill 2026 was introduced in the Lok Sabha on Wednesday, marking a significant move to strengthen oversight of foreign funding received by non-governmental organisations (NGOs). The bill, which received Union Cabinet approval on March 19, was presented by Union Home Minister Amit Shah after being added to the day’s business through a supplementary agenda.
The proposed legislation aims to reinforce the framework established under the Foreign Contribution (Regulation) Act, 2010. It introduces stricter rules for the use of foreign funds, enhanced monitoring systems, and a structured mechanism to manage assets acquired through such contributions. A key feature of the bill is the establishment of a designated authority to oversee foreign funds and assets in cases where an organisation’s registration is cancelled, surrendered, or expires.
Under the new provisions, this authority would be empowered to take control of assets created using foreign contributions. It would have the authority to manage, transfer, or dispose of these assets in accordance with prescribed rules. At present, there is no formal system to handle such assets in these situations. The bill also requires prior government approval before any sale of assets funded through foreign contributions.
If an organisation loses its registration, its foreign-funded assets would automatically vest with the designated authority. These could then be transferred or sold, with proceeds directed to the Consolidated Fund of India.
Currently, the 2010 Act governs around 16,000 registered organisations that receive nearly Rs 22,000 crore annually. Officials have pointed out gaps in the existing system, particularly in managing funds and assets when registrations lapse or are revoked, raising concerns about possible misuse.
The Statement of Objects and Reasons accompanying the bill highlights the need for a comprehensive legal framework. It proposes clearer timelines for fund usage, defined processes for handling assets during suspensions, streamlined penalties, and mandatory government approval before initiating investigations.
The bill’s introduction is expected to trigger debate in Parliament. While the government has stressed the importance of transparency and accountability, critics are likely to raise concerns about increased regulatory control over civil society organisations.