The Lok Sabha on Wednesday referred the 2026 Foreign Contribution Regulation Amendment Bill to a joint parliamentary committee for detailed examination.

Registration under the Foreign Contribution Regulation Act is mandatory for a non-profit organisation to receive foreign funds.

Among the key provisions under the amendment bill is one that allows the Union government to take control of an organisation’s foreign funds and assets if its FCRA registration lapses or is cancelled.

The bill was introduced in Parliament in March during the Budget Session.

The proposed legislation was sent for wider consultation in the wake of protests by Opposition parties, who said that the bill grants “sweeping and disproportionate powers” to the executive without adequate constitutional safeguards.

A collective of churches in Mizoram’s Aizawl also held a large-scale protest on Tuesday against the amendment bill, reported PTI. The protesters said that the legislation will adversely affect religious minorities, churches and non-governmental organisations, and could undermine constitutional safeguards.

On Wednesday, Union Parliamentary Affairs Minister Kiren Rijiju said the Opposition should raise their concerns before the committee.

The motion to refer the bill was moved by Union Minister of State for Home Nityanand Rai.

Although the supplementary list of business stated that Union Home Minister Amit Shah would move the motion in Lok Sabha, he was absent from the House.

The proposed committee to examine the bill will have 31 members, including 21 from the Lok Sabha and 10 from the Rajya Sabha. The speaker will name the Lok Sabha MPs, while the Rajya Sabha members will be nominated by the chairman of the Upper House.

The committee will be required to submit its report to the Lok Sabha by the last day of the first week of the Winter Session of Parliament.

The proposed changes

Under the proposed framework, foreign funds and assets will provisionally vest in a government-appointed “designated authority”. If the organisation fails to regain registration, this control would become permanent. The authority would then be empowered to use, transfer or dispose of these assets for “public purposes”.

The provision applies to all institutions, not just churches. The proposed amendment specifies that the religious character of the place of worship would be preserved.

Opposition MPs have opposed the proposed law, describing it as “dangerous” and “draconian”. Civil society groups have also criticised the bill, saying that the changes would expand state control over NGOs.

Between 2016-’17 and 2021-’22, more than 6,600 NGOs lost their FCRA licences, the government had told Parliament in December 2022. In 2023, it informed Parliament that 13,520 registered non-profit organisations had received more than Rs 55,700 crore in foreign contributions between 2019-’20 and 2021-’22.

On August 5, US Congressman Riley Moore criticised India’s proposed FCRA amendments, calling them a “clear attack against Christians” and alleging that they would allow the government to take control of churches and religious charities. He warned that the changes could hurt relations between Washington and New Delhi.

The Ministry of External Affairs rejected the concern on Friday, with spokesperson Randhir Jaiswal saying that “legislative matters concerning India are our internal affairs” and that decisions on such matters are taken by Parliament. He also noted that several countries, including the US, regulate the flow of foreign funds.

Written by Sara Varghese. Edited by Sneha.

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