New Delhi: The Foreign Contribution (Regulation) Amendment Bill, 2026 proposes a designated authority to safeguard foreign-funded assets when an NGO's registration lapses, is cancelled or ceases. The notified FCRA Amendment Rules, 2026 link registration to specified purposes and approved States and UTs, while excluding proselytisation from permitted religious activity, according to an official statement.Under Section 15 of the FCRA, in force since 2010, foreign contribution and assets created from it vest in a prescribed State Government authority after the cancellation, surrender or cessation of registration.Also Read: Mauritius tax protocol to give Indian taxman more powers to probe offshore entitiesNearly 20,000 registrations have been cancelled and about 15,000 deemed to have ceased over the past decade, leaving thousands of crores of foreign contribution and assets in limbo, with States saying they could neither take possession of nor manage them under the existing provision.The Bill was first introduced in the Lok Sabha on March 25, 2026 and is currently under Parliament's consideration, while the revised FCRA Rules, 2026 were notified on June 22, 2026 and are in force. Together, they seek to address operational gaps that have emerged in the administration of the Act over the years, the statement said.Also Read: TCS 'sexual harassment' case: Court grants bail to POSH committee memberThe Bill proposes that when registration ends, assets will vest provisionally in the Designated Authority. If the organisation restores its registration, all assets and unused funds will be returned in full. If the registration is not restored within the prescribed period, the assets will vest permanently and be applied for public purposes, with sale proceeds credited to the Consolidated Fund of India.The Bill also mandates that the Designated Authority preserve the religious character of any place of worship and bars it from converting, repurposing or secularising a religious institution. Organisations aggrieved by an order of the Designated Authority may seek revision within 90 days and have a further right of appeal before the court of the District Judge.The Bill further clarifies that registration automatically ceases if it is not renewed before expiry, removing ambiguity over the legal status of organisations after a certificate expires. It also proposes reducing the maximum imprisonment for FCRA violations from five years to one year.
Tighter regime proposed: FCRA Bill seeks custodian for NGO assets
A new bill proposes safeguarding foreign-funded assets when NGO registrations lapse or cease. Revised rules link registration to specific purposes and approved states, excluding proselytisation. Assets will vest provisionally with a Designated Authority and return if registration is restored. If not restored, assets will permanently apply to public purposes after sale. The bill also clarifies automatic registration cessation and reduces penalties for violations.
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