FCRA Amendment Bill, 2026: Church Leaders Express Concern Over Proposed Asset Takeover Provisions

Context:
Church leaders in Meghalaya have raised objections to certain provisions of the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, arguing that they may allow the government to take control of assets created using foreign contributions if an organisation loses its FCRA registration. The issue has sparked debate over regulation of foreign funding, property rights of charitable institutions, and the role of civil society organisations.

What is FCRA?

The Foreign Contribution (Regulation) Act (FCRA) regulates the acceptance and utilisation of foreign contributions by individuals, associations and NGOs in India to ensure that foreign funds do not adversely affect national interests.

Evolution of FCRA

Year	Development
1976	FCRA enacted during the Emergency to regulate foreign donations.
2010	FCRA, 2010 replaced the 1976 Act with stricter provisions and mandatory registration.
2020	Major amendments introduced stricter compliance, reduced administrative expenditure limit from 50% to 20%, prohibited transfer of foreign funds to other NGOs, and mandated SBI New Delhi account for receipt of foreign contributions.
2026	Proposed Amendment Bill introduces new provisions regarding management of assets created through foreign contributions.

Key Features of FCRA, 2010

• Mandatory registration or prior permission to receive foreign contributions.
• Registration valid for 5 years.
• Renewal required before expiry.
• Separate bank account for receiving foreign funds.
• Annual filing of returns.
• Government may suspend or cancel registration for violations.

What is the Proposed Amendment?

According to reports, the proposed amendment empowers a Designated Authority to:

• Take possession or supervise assets created wholly or partly from foreign contributions.
• Exercise these powers if an organisation’s FCRA registration is:
  • Cancelled
  • Surrendered
  • Allowed to lapse
• Manage or preserve such assets after loss of FCRA registration.

Why are Church Leaders Concerned?

Church organisations argue that:

• Schools, hospitals, hostels and welfare institutions were built over decades using foreign donations.
• These institutions provide essential services in remote areas where government facilities are limited.
• The proposed provisions could affect decades-old assets if FCRA registration is cancelled or not renewed.
• More than 37,000 FCRA registrations have reportedly been cancelled or not renewed over the years, increasing concerns among institutions relying on FCRA registration.

Stand of Meghalaya

• Meghalaya church bodies have urged the State Government to raise the issue with the Union Government.
• Chief Minister Conrad K. Sangma has stated that the objective is to seek safeguards so that genuine religious and charitable institutions are not adversely affected while maintaining regulatory oversight.

Government’s Objective Behind FCRA

The Act seeks to:

• Prevent foreign influence in India’s political process.
• Ensure transparency and accountability in utilisation of foreign funds.
• Prevent misuse of foreign contributions for activities prejudicial to:
  • National security
  • Public interest
  • Sovereignty and integrity of India

Arguments in Favour of the Amendment

• Greater accountability in utilisation of foreign funds.
• Prevents diversion or misuse of foreign contributions.
• Ensures that assets created from foreign donations remain under regulatory oversight.
• Strengthens transparency in the NGO sector.

Concerns Raised

• Possible impact on educational, healthcare and welfare institutions.
• Fear of excessive executive discretion.
• Questions regarding protection of property rights.
• Possible effect on civil society organisations working in underserved regions.
• Need to balance regulation with constitutional freedoms and charitable activities.

Constitutional Provisions

• Article 19(1)(c): Freedom to form associations.
• Article 26: Freedom to manage religious affairs.
• Article 300A: Right to property (no person shall be deprived of property except by authority of law).

Significance for Meghalaya

Christian organisations in Meghalaya play an important role in:

• Education
• Healthcare
• Tribal welfare
• Rural development
• Social service in remote areas

Hence, any major changes to FCRA have significant implications for the state’s social sector.

Previous Amendments (2020)

• Aadhaar mandatory for office bearers.
• Administrative expenditure capped at 20%.
• Transfer of foreign contribution to another NGO prohibited.
• Mandatory SBI New Delhi FCRA account.
• Increased government powers to suspend registrations.

Prelims Practice MCQs

1. The Foreign Contribution (Regulation) Act primarily seeks to:

(a) Regulate foreign trade

(b) Regulate foreign investment in companies

(c) Regulate acceptance and utilisation of foreign contributions by individuals and organisations

(d) Regulate remittances by NRIs

Answer: (c)

2. The present Foreign Contribution (Regulation) Act came into force in:

(a) 1972

(b) 1976

(c) 2010

(d) 2020

Answer: (c)

3. Which of the following was introduced through the FCRA Amendment Act, 2020?

1. Reduction of administrative expenditure limit.
2. Mandatory SBI New Delhi account for receiving foreign contribution.
3. Permission to transfer foreign contribution to another NGO.

Select the correct answer:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (a)

4. Which constitutional provision protects a person’s property from deprivation except by authority of law?

(a) Article 19

(b) Article 21

(c) Article 300A

(d) Article 32

Answer: (c)

Mains Practice Question (10 Marks)

“The regulation of foreign funding must balance national security concerns with the autonomy of charitable and civil society institutions.” Discuss in the context of the proposed FCRA Amendment Bill, 2026.