What are the concerns over the FCRA Bill?, Pg13

Key Highlights:

• The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on March 25, but its passage was deferred due to opposition.
• The Bill amends the Foreign Contribution (Regulation) Act, 2010, which mandates registration for NGOs and associations receiving foreign funds.
• The Bill proposes appointing a 'designated authority' to manage assets created from foreign funds if an NGO's FCRA registration is suspended or cancelled.
• The Bill broadens the definition of an NGO's 'key functionary' and requires prior central government approval for investigations into FCRA-related complaints.

Detailed Insights:

• The FCRA regulates foreign contributions to ensure they do not adversely affect national interest, public order, or national security; around 16,000 associations are registered under the FCRA, receiving approximately ₹22,000 crore annually.
• The proposed 'designated authority' will have civil court powers to transfer or sell assets owned by NGOs to the government or other bodies, addressing the lack of a statutory framework for managing assets created from foreign funds.
• The amendment makes a broader range of individuals within an NGO liable for FCRA offenses unless they can prove lack of knowledge or due diligence, impacting trustees, partners, and governing body members.
• The Bill seeks to amend Section 43 of the parent Act, requiring law enforcement agencies or state governments to obtain prior approval from the central government before investigating FCRA-related complaints.
• The Ministry of Home Affairs (MHA) regulates foreign donations through the FCRA, first enacted in 1976 and replaced in 2010, with amendments in 2016, 2018, and 2020.
• Since 2015, over 18,000 NGOs have had their FCRA registrations cancelled, with 14,965 FCRA-registered NGOs active as of April 3, allowing foreign contributions for social, educational, religious, economic, and cultural programs.
• Opposition to the Bill stems from concerns about executive overreach and undue interference in minority institutions and civil society groups, particularly regarding the government's power to deny renewal or seize assets.

Key Concepts Involved:

• Foreign Contribution (Regulation) Act (FCRA): Indian legislation regulating the acceptance and utilization of foreign contributions by individuals, associations, and organizations.
• Non-Governmental Organization (NGO): A non-profit, citizen-based group that functions independently of government, typically to address social or political issues.
• Designated Authority: An entity appointed by the government with powers to manage or dispose of assets of NGOs under specific circumstances as outlined in the FCRA.