Government allays fears over FCRA Bill, clarifies on designated authority

Amid concerns raised by minority institutions, particularly the Christian bodies, against the Foreign Contribution (Regulation) Amendment Bill, 2026 (FCRA), the Press Information Bureau (PIB) said on Wednesday (July 22, 2026) that the designated authority would retain the religious character of places of worship in all cases.

One of the key provisions in the FCRA Bill, 2026, which was introduced in the Lok Sabha on March 25 but could not be passed following an uproar by the Opposition parties, is the appointment of a ‘designated authority’ to take over, manage, or dispose of assets created from foreign funds when an NGO’s FCRA registration is suspended, cancelled, or not renewed. This authority will have the powers of a civil court and can order the transfer or sale of assets owned by NGOs to either the government or any other body.

The Bill is listed for passage in the ongoing monsoon session of the Parliament.

“The designated authority manages only assets created from foreign contributions, and only once an organisation’s registration has lawfully ceased. Vesting is initially provisional, with full restoration if registration is renewed, and places of worship retain their religious character by law in all cases. The orders of the authority are subject to revision and to appeal before the court of the District Judge,” the PIB said, while responding to a “myth” that the government can seize an NGO’s assets under the 2026 amendments.

The PIB released a backgrounder on FCRA with a “myth and fact” column.

Power of courts

Responding to another myth that cancellation of FCRA registration always means the organisation has done something wrong, the PIB said, “Not necessarily. Many cancellations and non-renewals are administrative, arising from non-filing of annual returns, non-renewal before expiry, or failure to maintain designated accounts. The courts remain fully empowered to review any cancellation.”

It added that in 2024-25, approximately 16,200 associations were actively registered and received around ₹22,963 crore in foreign contribution, “hardly the footprint of a prohibition.”

Answering a question if the “FCRA is aimed only at NGOs and religious organisations,” the statement said, “comparable global laws cover lobbyists, public relations firms, think tanks, universities and companies, anyone acting at a foreign principal’s direction, regardless of sector.”

On Juy 10, Union Home Minister Amit Shah assured the Catholic Bishops Conference of India (CBCI), the apex body of the Catholic church in India, that the FCRA Bill is not against the Christian NGOs, which receive a little under 15% of the total foreign donations.

The CBCI had sought a meeting with the Home Minister to express concerns about the provisions of the Bill and the FCRA Amendment Rules, 2026 notified on June 22. The Rules mandated NGOs to specify the list of activities that can be pursued by them under the five permitted categories — social, political, educational, cultural and religious and also state the geographic area where they would operate. Registration under the FCRA is mandatory to receive foreign donations.