Under the Foreign Contribution (Regulation) Amendment Bill, 2026, the entire hospital — not just the share financed by the foreign grant — would pass into the hands of a Designated Authority notified by the central government. The Bill calls this vesting. Initially it is provisional: the asset passes into the Authority’s legal control. Unless the trust recovers its registration within a period to be prescribed later, the vesting becomes permanent. The hospital could then be handed to a government department or sold, with the proceeds credited to the Consolidated Fund of India.Compliance should produce finality. Where foreign contribution was received under a valid certificate and lawfully spent on the approved purpose, the later expiry of that certificate should affect only the organisation’s ability to receive foreign money in future. It should not make title to a completed hospital conditional on remaining inside the FCRA system forever.The new Rules, notified in June, go further. They may pressure an organisation that has become entirely locally supported to keep seeking and spending foreign money simply to preserve its registration, and with it control of assets built years earlier.Expiry is not wrongdoing
Why the FCRA Bill is an asset grab in disguise
The FCRA Bill is meant to reduce foreign influence over Indian charities. But it may end up forcing them to keep taking foreign money, just to keep their own hospitals and schools.
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