JPC members question Centre on FCRA Bill’s asset takeover provisions, Pg11

Key Highlights:

• A Joint Committee of Parliament convened to discuss the Foreign Contribution (Regulation) Amendment Bill, 2026.
• The bill proposes that foreign contributions and assets created from them would vest in a government-appointed "designated authority" if an organisation's FCRA license is cancelled, surrendered, or lapses.
• Opposition members raised concerns about this provision, arguing it violates Article 300A of the Constitution by allowing asset takeover without prior hearing.
• The Union Home Ministry justified the amendments, citing the need for greater transparency, accountability, and national security in foreign funding.
• The Joint Parliamentary Committee comprises 31 members and is headed by BJP MP Sanjay Jaiswal.

Detailed Insights:

• The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on March 25, 2026.
• The proposed "designated authority" aims to address the limitations of the existing "prescribed authority," which is often a "passive custodian" with no clear procedure for asset disposal.
• The Home Ministry highlighted that the current law lacks provisions for taking possession, maintaining inventories, or segregating foreign-funded assets from domestically funded ones.
• States face practical challenges, including budgetary and manpower constraints, in managing institutions like schools and hospitals under prolonged custodianship of vested assets.
• The FCRA was originally enacted in 1976 during the Cold War era to counter perceived threats to India's sovereignty and democratic institutions from foreign influence.
• The Ministry's presentation, which categorized foreign contributions by religious groups, drew criticism from some members who questioned the rationale behind such segregation.
• The proposed law aims to provide a clear legal process for managing assets of defunct or inactive NGOs that received foreign funds.

Key Concepts Involved:

• Foreign Contribution (Regulation) Act (FCRA): A law enacted in India to regulate the acceptance and utilisation of foreign contributions or hospitality by individuals, associations, or companies.
• Joint Committee: An ad-hoc parliamentary committee formed with members from both the Lok Sabha and Rajya Sabha to examine a specific bill or issue in detail.
• Article 300A: A constitutional right stating that no person shall be deprived of their property save by authority of law, ensuring due process for property acquisition.