<h2>Overview</h2>
<p>The <span class="key-term" data-definition="Foreign Contribution (Regulation) Amendment Bill, 2026 — Proposed legislation to amend the FCRA, introducing new controls over NGOs and their assets (GS2: Polity)">Foreign Contribution (Regulation) Amendment Bill, 2026</span> was introduced in the Lok Sabha on <strong>25 March 2026</strong> during the Budget Session, which concluded on <strong>2 April 2026</strong>. The Bill seeks to amend the <span class="key-term" data-definition="Foreign Contribution (Regulation) Act, 2010 — Indian law governing acceptance and utilisation of foreign funds by NGOs to safeguard national interest (GS2: Polity)">FCRA</span> of 2010, a law that mandates registration for NGOs receiving foreign donations. After heated objections from opposition parties and minority institutions, the Bill’s discussion was deferred.</p>
<h3>Key Developments Proposed in the Bill</h3>
<ul>
<li>Creation of a <span class="key-term" data-definition="Designated Authority — A proposed statutory body with civil‑court powers to manage or dispose of assets of NGOs whose FCRA registration is suspended or cancelled (GS2: Polity)">designated authority</span> empowered to take over, manage or sell assets of NGOs whose registration is suspended, cancelled or not renewed.</li>
<li>Broadening the definition of a <span class="key-term" data-definition="Key functionary — Expanded definition to include trustees, partners, Karta of HUF, and others, making them personally liable for FCRA violations (GS2: Polity)">key functionary</span> to include trustees, partners, the Karta of a Hindu undivided family, governing‑body members, and anyone exercising control, with personal liability for offences.</li>
<li>Amendment of <span class="key-term" data-definition="Section 43 — Provision of the FCRA that currently allows investigations without prior central approval; amendment seeks to require such approval (GS2: Polity)">Section 43</span> to require prior approval from the Central Government before any law‑enforcement agency or State government can initiate an investigation into FCRA‑related complaints.</li>
<li>Introduction of fixed timelines for receipt and utilisation of foreign contributions under the ‘prior permission’ category, replacing the open‑ended provision of the 2010 Act.</li>
<li>Automatic cessation of FCRA certificates on expiry or non‑renewal, and reduction of maximum imprisonment for FCRA offences from five years to one year.</li>
</ul>
<h3>Important Facts and Figures</h3>
<p>According to the Bill’s statement of objects and reasons, about <strong>16,000</strong> associations are currently registered under the <span class="key-term" data-definition="Foreign Contribution (Regulation) Act, 2010 — Indian law governing acceptance and utilisation of foreign funds by NGOs to safeguard national interest (GS2: Polity)">FCRA</span>, receiving roughly <strong>₹22,000 crore</strong> annually. Since 2015, more than <strong>18,000</stro