{"id":85185,"date":"2026-09-19T18:08:11","date_gmt":"2026-09-19T12:38:11","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=85185"},"modified":"2026-09-19T18:09:27","modified_gmt":"2026-09-19T12:39:27","slug":"first-meeting-of-jpc-on-fcra-bill","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/19-09-2026\/first-meeting-of-jpc-on-fcra-bill","title":{"rendered":"First Meeting of JPC on FCRA Bill"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Polity and Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At the first meeting of Parliament\u2019s Joint Committee on the <strong>Foreign Contribution (Regulation) Amendment Bill, 2026,<\/strong> members raised questions on the proposed changes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Foreign Contribution Regulation Act (FCRA), 2010<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was f<strong>irst enacted in 1976<\/strong>, replaced in 2010, and further amended in 2016, 2018, and 2020.<\/li>\n\n\n\n<li>It is <strong>administered by the Ministry of Home Affairs (MHA)<\/strong>.<\/li>\n\n\n\n<li><strong>Aim: <\/strong>To <strong>regulate the acceptance and utilization of foreign contributions<\/strong> to prohibit activities detrimental to the national interest.<\/li>\n\n\n\n<li>FCRA registration is <strong>valid for 5 years <\/strong>and <strong>must be renewed before expiry.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Provisions of the 2026 Amendment Bill<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Designated Authority for Asset Management:<\/strong> The Bill proposes the creation of a Designated Authority as the core institutional mechanism for managing foreign-funded assets.\n<ul class=\"wp-block-list\">\n<li>The authority will <strong>take control of foreign contributions and assets<\/strong> when an organisation\u2019s registration is cancelled, surrendered, expired, or not renewed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Government Power Over Assets:<\/strong> If registration is not restored, the government can transfer assets to a government department.\n<ul class=\"wp-block-list\">\n<li>It can also sell those assets, with proceeds <strong>going to the Consolidated Fund of India.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Automatic Cessation of Registration:<\/strong> A <strong>new Section 14B<\/strong> is introduced, providing for <strong>&#8220;deemed cessation&#8221; of FCRA <\/strong>registration upon expiry or refusal of renewal. Registration automatically stops in three situations:\n<ul class=\"wp-block-list\">\n<li>Organisation fails to apply for renewal.<\/li>\n\n\n\n<li>Renewal application is rejected.<\/li>\n\n\n\n<li>Validity period expires without renewal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Time-Bound Utilisation of Funds: <\/strong>The amendment introduces mandatory timelines for the receipt and utilisation of foreign funds to improve financial discipline and transparency.<\/li>\n\n\n\n<li><strong>Restrictions During Suspension: <\/strong>A suspended organisation cannot sell, transfer, or mortgage its foreign-funded assets, the prior government approval is mandatory for any such action.<\/li>\n\n\n\n<li><strong>Centralised Investigation Control: <\/strong>Section 43 of the parent Act is amended, requiring any law enforcement agency or state government to obtain prior clearance from the Centre before beginning an inquiry into FCRA allegations.\u00a0<\/li>\n\n\n\n<li><strong>Rationalisation of Penalties:<\/strong> The maximum punishment is reduced from five years of imprisonment to one year, or fine, or both.<\/li>\n\n\n\n<li><strong>Individual Accountability: <\/strong>The definition of &#8220;Key Functionary&#8221; now includes directors, partners, trustees, karta of Hindu Undivided Family (HUF), office-bearers of societies\/trusts\/trade unions, and any person with control over management.\n<ul class=\"wp-block-list\">\n<li>They are personally liable unless they prove lack of knowledge or due diligence.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Permanent Vesting of Assets: <\/strong>If an organisation shuts down, becomes inactive, or ceases to exist, its foreign-funded assets will permanently vest with the government through the Designated Authority.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns Raised by the Members<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Questions on the Asset Control:<\/strong> If an FCRA certificate is cancelled, surrendered or lapses, foreign-funded assets may vest in a government-appointed \u201cdesignated authority\u201d without prior hearing or judicial review.<\/li>\n\n\n\n<li><strong>No time limit:<\/strong> The law is silent on\u00a0 the duration for which such assets can remain under government custody.<\/li>\n\n\n\n<li><strong>Lack of procedure: <\/strong>It lacks clear rules for taking possession, maintaining inventories, or separating foreign-funded assets from domestically funded assets.<\/li>\n\n\n\n<li><strong>Resource burden:<\/strong> Long-term management of institutions like schools, hospitals and orphanages may create financial and manpower pressure for States.<\/li>\n\n\n\n<li><strong>No clear disposal rules:<\/strong> The law does not clearly mention the final disposal of assets or the treatment of places of worship.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why is Regulating Foreign Contributions Necessary?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>It protects national security<\/strong> and sovereignty by keeping a track of on foreign funding through FCRA.<\/li>\n\n\n\n<li>The regulation of the foreign contributions government <strong>prevents money laundering <\/strong>and <strong>diversion of funds to illegal activities<\/strong>.<\/li>\n\n\n\n<li>It ensures funds are used <strong>only for developmental and charitable purposes.<\/strong><\/li>\n\n\n\n<li><strong>It brings\u00a0 a sense of transparency and accountability<\/strong> to NGO functioning.<\/li>\n\n\n\n<li><strong>Prevents foreign funding <\/strong>of electoral candidates, journalists, judges, government servants, and political organisations, all of which are prohibited under FCRA.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns over Regulation of Foreign Contributions<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Administrative Delays:<\/strong> The registration and renewal process is often time-consuming, affecting NGOs\u2019 ability to access funds and carry out activities.<\/li>\n\n\n\n<li><strong>Political Interference: <\/strong>The government\u2019s discretionary powers to cancel registrations or freeze accounts of NGOs is seen as a form of political interference.<\/li>\n\n\n\n<li><strong>Lack of Transparency: <\/strong>Some NGOs have been criticized for lacking transparency in their utilization of foreign funds received under the FCRA.\n<ul class=\"wp-block-list\">\n<li>Concerns often arise when the specific purposes and beneficiaries of these funds are not clearly disclosed.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The government should ensure <strong>transparent and time-bound approval<\/strong> processes under FCRA.<\/li>\n\n\n\n<li>There is a <strong>need to balance regulatory oversight with autonomy<\/strong> of civil society organisations.<\/li>\n\n\n\n<li><strong>Judicial and institutional safeguards <\/strong>should be ensured to prevent arbitrary use of powers.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/jpc-members-question-centre-on-foreign-funds-asset-takeover-provisions-in-fcra-amendments\/article71481567.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> At the first meeting of Parliament\u2019s Joint Committee on the Foreign Contribution (Regulation) Amendment Bill, 2026, members raised questions on the proposed changes. <\/li>\n<p><\/p>\n<p><strong> Foreign Contribution Regulation Act (FCRA), 2010 <\/strong><\/p>\n<li class=\"ms-5\"> It was first enacted in 1976, replaced in 2010, and further amended in 2016, 2018, and 2020. <\/li>\n<li class=\"ms-5\"> It is administered by the Ministry of Home Affairs (MHA). <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/19-09-2026\/first-meeting-of-jpc-on-fcra-bill\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-85185","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/85185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=85185"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/85185\/revisions"}],"predecessor-version":[{"id":85188,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/85185\/revisions\/85188"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=85185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=85185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=85185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}