Foreign Contribution (Regulation) Amendment Bill, 2026
UPSC / SSC current affairs note · Polity
Why in news
The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in Lok Sabha on March 25, 2026, aiming to tighten control over foreign contributions and assets of NGOs. It proposes a new framework for vesting of foreign contribution and assets in a Designated Authority upon cancellation, surrender, or cessation of registration.
Background
The Foreign Contribution (Regulation) Act, 2010 regulates acceptance and utilisation of foreign contribution by individuals, associations, and companies. The Act requires certain persons to register with the central government and allows cancellation of registration on specified grounds. The 2026 Bill seeks to amend this Act to address management of foreign contribution and assets when registration ceases.
Key facts
The Bill amends the Foreign Contribution (Regulation) Act, 2010.
It adds that a registration certificate will be deemed to have ceased if no renewal application was made, renewal denied, or renewal not obtained before expiry.
In cases of cancellation, surrender, or ceasing of registration, foreign contribution and assets (including partly from foreign contribution) will vest provisionally in a Designated Authority notified by the central government.
The Designated Authority will supervise and maintain the assets, and may utilise foreign contribution to manage them.
Upon renewal, restoration, or fresh registration, the Authority will return unutilised contribution and provisionally vested assets.
Foreign contribution and assets vest permanently in the Designated Authority if the person fails to obtain fresh registration or renewal within a prescribed period, or ceases to exist.
Permanently vested assets must be applied for public purposes; may be transferred to government bodies or disposed of; proceeds credited to the Consolidated Fund of India.
Persons whose assets are vested must provide access to accounts, not transfer assets without approval, and maintain assets under Authority supervision.
Appeals against orders of the Designated Authority lie to the District Judge within 90 days.
The central government may exempt certain persons from vesting provisions.
Prelims pointers
- Foreign Contribution (Regulation) Act, 2010
- Foreign Contribution (Regulation) Amendment Bill, 2026
- Designated Authority
- Consolidated Fund of India
- District Judge (appeals)
- Ministry of Home Affairs
Mains angles
- Discuss the implications of the Bill on the functioning of NGOs and civil society organisations in India.
- Critically examine the balance between regulating foreign funding and ensuring autonomy of non-profit organisations.
- Analyse the role of the Designated Authority and the appeal mechanism in ensuring accountability.