FCRA Bill 2026 Sent to JPC: 31-Member Joint Parliamentary Committee to Examine Foreign Funding Law

Lok Sabha Speaker Om Birla on 3 September 2026 constituted a 31-member Joint Parliamentary Committee (JPC) to examine the Foreign Contribution (Regulation) Amendment Bill, 2026, widely known as the FCRA Bill 2026. The panel will be chaired by BJP MP Dr Sanjay Jaiswal and includes 21 members from the Lok Sabha and 10 from the Rajya Sabha. The move means the bill has not been passed, it has been sent for detailed clause-by-clause scrutiny and is expected to report by the first week of the Winter Session.

What is FCRA and What Does the FCRA Bill 2026 Propose?

FCRA stands for the Foreign Contribution (Regulation) Act. It is the law that regulates how individuals, associations and companies in India can accept and use foreign contribution, which means money, gifts or donations received from a foreign source. The law also regulates foreign hospitality, which is facilities or services offered by a foreign source.

The first FCRA was passed in 1976 during the tenure of Prime Minister Indira Gandhi. At that time the focus was mainly on preventing foreign money from influencing politics and requiring organisations to report foreign funds annually. An amendment in 1984 made it compulsory for non-profit organisations to get registered before receiving foreign donations. The 1976 law was later repealed and replaced by the Foreign Contribution (Regulation) Act, 2010, which came into force on 1 May 2011. The 2010 Act made the system stricter, it introduced a five-year renewable certificate instead of permanent registration, capped administrative expenses and placed the oversight with the Ministry of Home Affairs (MHA).

Parliament amended the Act again in 2020. That amendment banned the transfer of foreign contribution to another organisation, reduced the cap on administrative expenses from 50 percent to 20 percent, made it mandatory to provide Aadhaar of office bearers for registration and renewal, and required a designated FCRA account at the State Bank of India, New Delhi. The Foreign Contribution (Regulation) Amendment Bill, 2026, which was introduced in the Lok Sabha on 25 March 2026, is the next major change in this series. It does not change who can receive foreign contribution, it creates a detailed system to handle money and assets after an organisation loses its permission to receive foreign funds.

How Foreign Contributions Are Regulated Under Current Law

Under the 2010 Act, any NGO, trust, society or association that wants to receive foreign funds must obtain an FCRA certificate from the Central Government or obtain prior permission for a specific amount and purpose. The certificate must be renewed every five years. The government can cancel the certificate if the holder makes a false statement, violates any condition of the Act, has not worked in its chosen field for two consecutive years, has become defunct, or if cancellation is considered necessary in public interest. Since 2020, an organisation can also voluntarily surrender its certificate with government approval.

As of 15 July 2026, the MHA portal showed 14,449 active FCRA certificates, while 22,498 certificates had been cancelled and 15,212 were deemed expired after organisations failed to seek renewal. The high number of cancellations, especially after 2011, reflects tighter enforcement and renewal requirements.

The 2010 Act provided in Section 15 that foreign contribution and assets created from it would vest in an authority prescribed by the government if the certificate was cancelled or surrendered. However, no specific authority was notified and no clear procedure was laid down for how such assets would be managed or returned. The 2026 Bill seeks to fill this gap.

What is a Joint Parliamentary Committee and Why Was the Bill Sent to JPC?

A Joint Parliamentary Committee (JPC) is an ad hoc parliamentary committee, which means it is created for a specific purpose and for a limited time. It ceases to exist after it submits its report. It is called joint because it has members from both Houses of Parliament, the Lok Sabha and the Rajya Sabha. A JPC is set up when a motion is adopted by one House and agreed to by the other, or when the presiding officers of both Houses communicate and decide to form it. The Lok Sabha Speaker constitutes the committee and appoints its chairperson, who is usually a Lok Sabha member. The strength of a JPC is not fixed by rules, it is decided by the motion creating it. The usual ratio is two Lok Sabha members for every one Rajya Sabha member, which is why this panel has 21 and 10 members respectively.

A JPC can obtain oral and written evidence, call for documents, summon experts, public bodies, associations and individuals, and examine government officials. If a witness does not appear on summons, it can amount to contempt of the House. Its proceedings are confidential until the report is tabled, and ministers are not normally called to give evidence unless the Speaker permits. The recommendations of a JPC are advisory and not binding on the government, but they carry political and parliamentary weight because they come after detailed examination. If members disagree with the majority view, they can add a dissent note to the report. The government is expected to file an Action Taken Report on the recommendations.

The FCRA Bill 2026 is not passed. The Lok Sabha referred the bill to the JPC on 12 August 2026 after strong objections from opposition parties and other stakeholders. The opposition argued that provisions allowing a government appointed authority to take over assets created from foreign funds could be used to target NGOs and minority run institutions, particularly Christian organisations running schools and welfare bodies. The government denied that the law is religion specific and said it is meant to improve regulation and prevent misuse. Concerns were also raised by Chief Ministers of Nagaland, Mizoram and Meghalaya, who urged a detailed examination. Instead of pushing the bill through by majority, the government agreed to send it for wider scrutiny. That is why the JPC was formed, to hear stakeholders, examine the bill clause by clause and try to build consensus before it moves forward.

Who Are the Members of the 31-Member JPC on FCRA Bill 2026?

The 31-member JPC was constituted by Lok Sabha Speaker Om Birla through a Lok Sabha bulletin issued on 3 September 2026, about three weeks after the House had decided to refer the bill. The committee has 19 members from the National Democratic Alliance (NDA), including 14 from the BJP, and the rest from opposition parties. The Congress has five members, while Janata Dal (United), Trinamool Congress and Dravida Munnetra Kazhagam (DMK) have two each, and Samajwadi Party, Telugu Desam Party (TDP), Shiv Sena, Nationalist Congress Party (NCP), NCP Sharadchandra Pawar and Indian Union Muslim League (IUML) have one each.

The chairperson is Dr Sanjay Jaiswal, BJP MP from Paschim Champaran (Bettiah), Bihar. He is a four-time Lok Sabha MP and the BJP’s chief whip in the Lok Sabha. A medical doctor by training, he has served on several parliamentary panels earlier.

Composition of the Committee

Three of the BJP Rajya Sabha members, C Sadanandan Master, Harsh Vardhan Shringla and Ujjwal Deorao Nikam, are nominated members who joined the BJP. Shringla is a former Foreign Secretary.

The committee has been asked to submit its report to the Lok Sabha by the last day of the first week of the Winter Session. In practice, JPCs often seek extensions to complete consultations with ministries, legal experts, NGOs and state governments. This is the 19th joint committee formed on a bill since 1950 and the ninth since 2024.

Key Provisions of the Foreign Contribution Regulation Amendment Bill 2026

The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on 25 March 2026 by the Ministry of Home Affairs. It inserts a new Chapter IIIA and replaces the existing Section 15 with detailed sections 16A to 16D. The central idea is to create a clear legal framework for what happens to money and assets after an organisation can no longer receive foreign contribution.

The Designated Authority and Vesting of Assets

The bill creates a Designated Authority, which will be an officer or authority notified by the Central Government. An Administrator may also be appointed to help the Authority. All foreign contribution and assets created out of foreign contribution will vest provisionally in this Authority from the date the certificate is cancelled under Section 14, surrendered under Section 14A, or deemed to have ceased under new Section 14B. Cessation covers three situations, when no application for renewal was made, when renewal is refused, or when the certificate is not renewed before expiry.

Once vesting happens, the Authority can take possession of the assets directly or through the Administrator and take responsibility for their supervision, management and preservation. If considered necessary in public interest, it can also manage the activities of the organisation and use the foreign contribution to run them. The vesting is provisional at first. If the organisation obtains a fresh certificate under Section 12, renewal under Section 16, or restoration through revision under Section 32 within the period prescribed by rules, the Authority must return the unutilised foreign contribution and the provisionally vested assets subject to conditions.

If the organisation fails to get a fresh certificate, renewal or restoration within that period, the vesting becomes permanent. The Authority must then apply the funds and assets for public purposes. It may transfer them to any ministry, department, authority or agency of the Central or State Government or any local authority, or dispose of them through sale or any other process as prescribed. Sale proceeds together with any unutilised contribution will be credited to the Consolidated Fund of India. No key functionary of the organisation at the time of cancellation, surrender or cessation, or any person acting for such person, can directly or indirectly acquire those assets.

A special rule applies to mixed funding. Even if an asset was created partly from foreign contribution and partly from other sources, the whole asset vests in the Authority. The organisation can apply for return of any distinct or ascertainable portion created from domestic funds, and the Authority may return it if satisfied. For assets that are fully or partly a place of worship, the Authority must entrust management to a suitable person and ensure that the religious character of the place is maintained.

The bill also covers earlier cases. All foreign contributions and assets that had already vested under the old Section 15 will be deemed to be provisionally vested in the new Designated Authority from the date the 2026 Amendment comes into force. Where an organisation that was permitted to accept foreign contribution ceases to exist or becomes defunct or inoperative, its last key functionaries must inform the government and its foreign contribution and assets will stand permanently vested.

To enforce its work, the Authority and Administrator will have powers of a civil court for summoning persons and receiving evidence, and all government officers are required to assist them. Property vested in the Authority cannot be attached or sold under any civil court order except as per the Act. After the Authority passes an order, the organisation can seek revision by the Authority or appeal to a judge within 90 days.

Other Major Changes Proposed

The bill also clarifies several other processes. It states that during the period when a certificate is suspended, the organisation cannot use, transfer or dispose of assets created from foreign contribution except as per the Act and with prior government approval. It requires organisations seeking prior permission, registration or renewal to provide Aadhaar numbers of all office bearers or directors, or passport or Overseas Citizen of India card for foreigners, under new Section 12A.

It rationalises penalties and reduces the maximum imprisonment for attempting or abetting violations from five years to one year, which places the punishment in the category of lesser offences and changes the trial procedure. It expands the rule making power of the Central Government under Section 48 to prescribe timelines for utilisation under prior permission, the procedure for provisional vesting, asset management, return and disposal, and appeal mechanisms.

How is a JPC Different from a Standing Committee and What About FCRA vs FEMA?

Many people confuse a JPC with other parliamentary committees and also confuse FCRA with similar sounding laws. Two comparisons are useful.

A Joint Parliamentary Committee is a temporary ad hoc body formed for one specific bill or issue. It is dissolved after its work ends. A Standing Committee, particularly the Department-related Standing Committees (DRSCs), are permanent in nature and reconstituted each year. While a JPC deals with a single bill in depth, DRSCs examine the work, budget and policies of ministries on a continuing basis throughout the year. The powers of a JPC are also wider for its specific task, it can summon witnesses and documents more extensively and its membership reflects party strength with a chairperson from the Lok Sabha.

The other common comparison is FCRA versus FEMA. FCRA under the Ministry of Home Affairs controls voluntary donations from foreign sources to associations and NGOs and the purpose is to protect national interest and prevent misuse of foreign funds. FEMA, the Foreign Exchange Management Act, 1999, under the Ministry of Finance and administered by the Reserve Bank of India (RBI), regulates external trade and payments, foreign exchange transactions, foreign investment and the inflow and outflow of foreign currency in the course of business and investment. In simple terms, FCRA is about foreign donations for non-profit work, FEMA is about foreign exchange for trade and investment.

Significance, Concerns and What Happens Next

The examination of the FCRA Bill 2026 matters because foreign funding supports a large social service network in India. According to government data, foreign donations to FCRA registered organisations amounted to ₹55,741 crore between 2018 and 2023, and over four lakh associations have been registered since 1976, though many registrations have lapsed or been cancelled due to tighter norms. Hospitals, universities, schools and relief organisations created from such funds have long gestation periods and involve community trust.

The bill tries to bring clarity. At present, when an organisation loses its certificate, there is no Designated Authority or standard operating procedure for custody, maintenance or restoration of assets. This creates legal uncertainty for assets such as hospital buildings, hostels or training centres that were built over years. The new framework provides a statutory custodian, a time bound window to reclaim assets by obtaining fresh registration or renewal, and a clear rule that sale proceeds go to public funds.

At the same time, concerns have been raised during preliminary debate. First, vesting on cessation means that an organisation that simply chooses not to renew its certificate, even when it no longer seeks foreign funds and runs on domestic money, could still lose assets created earlier from foreign contribution. Second, because the bill treats partially foreign funded assets as wholly vested unless a distinct domestic portion can be proved, hospital wards or classrooms built with mixed donations may be difficult to separate. Third, analysts note differential treatment of assets created through prior permission compared to those created under a regular FCRA certificate, and the absence of a direct appeal mechanism against refusal to renew a certificate, though an appeal lies against cancellation. Fourth, civil society groups argue that the provisional management powers of the Authority could disrupt ongoing welfare activities if not exercised with restraint.

What happens next is a structured process. The JPC will invite written suggestions from the public and stakeholders, hold oral evidence sessions with officials from the Ministry of Home Affairs, legal experts and representatives of NGOs and faith based organisations, examine the bill clause by clause, and consider amendments. Its report will be tabled in Parliament and the government will decide which recommendations to accept before the bill is taken up for consideration and passing in both Houses. If passed, the Central Government will notify the Designated Authority and frame rules under Section 48 to operationalise timelines, return procedures, transfer and sale methods, and the handling of places of worship.

Key Takeaways

• The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced on 25 March 2026 and has not been passed, it was referred to a Joint Parliamentary Committee on 12 August 2026.
• Lok Sabha Speaker Om Birla constituted the 31-member JPC on 3 September 2026 with 21 Lok Sabha and 10 Rajya Sabha members, chaired by Dr Sanjay Jaiswal, MP from Bettiah, Bihar.
• The FCRA, 2010 under the Ministry of Home Affairs came into force on 1 May 2011, replacing the FCRA, 1976, and requires a five-year renewable certificate for receiving foreign contribution.
• The bill creates a Designated Authority for provisional and then permanent vesting of foreign contribution and assets when a certificate is cancelled, surrendered or deemed to have ceased due to non-renewal.
• Assets created partly from foreign funds will vest wholly, subject to return of any distinct domestic portion, and permanently vested assets will be used for public purposes with proceeds credited to the Consolidated Fund of India, with special protection for places of worship.
• The bill reduces the maximum punishment for FCRA violations from five years to one year of imprisonment.