The government on Wednesday introduced the 2026 Foreign Contribution Regulation Amendment Bill in the Lok Sabha, which allows the Centre to take control of an NGO's foreign funds and assets if its FCRA registration lapses.
Opposition MPs opposed the proposed law, calling it “draconian” and “dangerous”.
The proposed bill seeks to introduce a stronger regulatory framework, including the creation of a new authority to take control of assets belonging to NGOs that lose their licence. The “designated authority” will be empowered to take over, manage and dispose of assets created out of foreign contributions in cases where an organisation’s registration is cancelled, surrendered or ceases to exist.
The bill proposes provisional and permanent vesting of such assets, meaning that from the date of cancellation or cessation, the funds and assets will come under the control of the authority.
Opposition parties said the bill would further shrink democratic space, leaving civil society operating under “regulatory uncertainty and fear of punitive action”. Congress MP Manish Tewari said the amendment bill grants “sweeping and disproportionate powers” to the executive without adequate constitutional safeguards.