The government is likely to refer the Foreign Contribution (Regulation) Amendment Bill, 2026, to a Joint Parliamentary Committee (JPC) for detailed examination, sources said on Tuesday. The move comes amid concerns raised by opposition parties and several organisations over provisions that seek to strengthen government oversight of foreign-funded organisations and assets created through foreign contributions.
The proposed legislation aims to establish a comprehensive framework for the supervision, management and disposal of foreign contributions and assets through a designated authority. It was introduced in the Lok Sabha on March 25 and is expected to come up for discussion in Parliament on August 12.
The possibility of referring the Bill to a JPC could provide members across political parties an opportunity to examine its provisions in detail and suggest changes before Parliament considers its passage.
The Bill's proposed discussion on August 12 was indicated earlier by Mizoram Chief Minister Lalduhoma after he met Union Home Minister Amit Shah on August 7. Lalduhoma, accompanied by a delegation of church leaders from Mizoram, had conveyed concerns regarding the proposed legislation, particularly its provisions relating to organisations whose Foreign Contribution (Regulation) Act (FCRA) registration is cancelled, surrendered or not renewed.
According to Lalduhoma, Shah assured the delegation that the proposed legislation would not have retrospective effect. The assurance was significant because concerns had been raised over the possible impact of the legislation on organisations and assets that came into existence under the existing FCRA framework.
The proposed law has attracted particular attention in Mizoram, where churches and other organisations have expressed apprehension about the proposed powers of the designated authority.
One of the most important provisions of the FCRA Amendment Bill is the proposed creation of a "Designated Authority". The authority would be empowered to take over the management of foreign contributions and assets created from such contributions when an organisation's FCRA registration is cancelled, surrendered or ceases because it has not been renewed.
The government has proposed the mechanism to ensure that foreign-funded assets do not remain outside regulatory oversight after an organisation loses its FCRA registration.
The Bill also lays down provisions concerning assets used as places of worship. In such cases, the designated authority would be required to ensure that the religious character of the property is maintained.
This provision assumes particular importance for religious organisations that receive or utilise foreign contributions, as it seeks to combine regulatory control over assets with protection of their existing religious character.
Another significant feature of the proposed legislation is a reduction in the maximum imprisonment prescribed for violations of the FCRA.
The Bill proposes reducing the maximum penalty from imprisonment of up to five years under the existing framework to imprisonment of up to one year. The proposed change comes alongside the government's broader effort to strengthen supervision of foreign contributions while revisiting the penal provisions of the law.
The FCRA regulates the acceptance and utilisation of foreign contributions by individuals, associations and organisations in India. Its stated objective is to ensure that foreign funds are used in accordance with the law and do not adversely affect national interest or public order.
The scale of the proposed changes can be gauged from the number of organisations covered by the FCRA framework. According to data available on the FCRA portal, as of July 15, 2026, there were 14,449 active FCRA certificates. Meanwhile, 22,498 certificates had been cancelled and 15,212 were listed as deemed expired.
The large number of registrations and cancellations underlines the importance of a clear mechanism for dealing with foreign-funded assets when an organisation's registration ceases to remain valid.
With the government now reportedly considering a JPC examination, the proposed legislation could undergo detailed scrutiny before it moves towards final passage. Such a process could also provide an avenue for addressing concerns raised by states, opposition parties, religious organisations and civil society groups while retaining the government's objective of ensuring greater accountability and transparency in the management of foreign contributions.
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