NEW DELHI — The Indian government on Thursday sought to clarify a key provision of the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, saying the creation of a “Designated Authority” is intended to provide a structured legal mechanism for managing assets created through foreign contributions after an organisation’s registration under the Foreign Contribution (Regulation) Act (FCRA) ceases, rather than introducing a new power to seize property.
The clarification came as Parliament prepared to consider the legislation and after opposition parties, civil society groups and some religious organisations raised concerns over the proposed authority’s powers to supervise and dispose of assets belonging to organisations that lose, surrender or fail to renew their FCRA registration.
In a detailed background note released by the Press Information Bureau, the government said the concept of vesting assets created from foreign contributions already exists under Section 15 of the FCRA, 2010. It said the amendment would establish a comprehensive legal framework governing how such assets are managed when an organisation’s registration ends.
According to the government, assets would initially vest provisionally in the Designated Authority. If an organisation successfully restores its FCRA registration within the prescribed period, all unused foreign contributions and related assets would be returned in full. Permanent vesting would occur only if registration is not restored within that period, after which the assets would be directed toward public purposes or, where appropriate, sale proceeds credited to the Consolidated Fund of India.
The government also said the proposed authority would be legally required to preserve the religious character of any place of worship under its supervision and would not be permitted to convert or repurpose religious institutions. It added that organisations would have the right to seek revision of decisions within 90 days and could appeal to a district judge, providing judicial oversight of the authority’s actions.
Separately, the government said the proposed amendments are intended to strengthen transparency and accountability in the regulation of foreign funding and cited comparable legal frameworks in countries including the United States, the United Kingdom, Australia and Canada as evidence that oversight of foreign financial influence is not unique to India.
The proposed legislation remains under parliamentary consideration. Legislative analyses note that the bill would establish the Designated Authority to oversee foreign-funded assets after an organisation ceases to hold an FCRA certificate, while critics have questioned whether the framework provides sufficient safeguards for affected organisations.
