Explained: What FCRA Amendment Bill 2026 proposes, why it has sparked a row

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Union Home Minister Amit Shah in the Lok Sabha. Minister of State for Home Affairs, Nityanand Rai, back left, is also seen. (PTI)The Foreign Contribution (Regulation) Amendment Bill, 2026, which was introduced in the Lok Sabha on March 25, has become the latest flashpoint between the central government and the Opposition.In Kerala, the ruling Left Democratic Front and the Congress have alleged that if passed, the legislation would target institutions of minority communities. Ahead of the state assembly election on April 9, both parties have hit out at the BJP over the Bill.The Bill, which was introduced by Minister of State for Home Affairs, Nityanand Rai, on behalf of Home Minister Amit Shah, seeks to amend the Foreign Contribution (Regulation) Act, 2010, known as FCRA. In the statement of objects and reasons for the Bill, the Home Minister wrote that FCRA came into force on May 1, 2011.The Act regulates the acceptance and utilisation of foreign contributions and hospitality by NGOs to ensure such “inflows do not adversely affect national interest, public order or national security”.The Act has been amended thrice already, in 2016, 2018 and 2020. As of now, there are around 16,000 associations registered under the Act that received about Rs 22,000 crore annually, the Minister said.What is the amendment?Explaining the need for this amendment, Shah said some operational and legal gaps had been identified in relation to the cases where FCRA registration of an association is cancelled, surrendered or otherwise ceased.The amendment seeks to provide a comprehensive framework for such cases by establishing a designated authority to supervise and manage the foreign contributions and assets in case the FCRA certificate is cancelled or ceased. The amendment gives the Central government the power to appoint the designated authority that would control the funds and assets in case the FCRA certificate is cancelled, surrendered or ceased.Story continues below this adAlso in Explained | Telangana Assembly passes Gig Workers Bill: What is the Bill about, and how other states with such laws have faredClause 16A (7) of the amendment says that in case of a place of worship, the designated authority can entrust the management or operation of the asset to a person in such manner as may be prescribed. It must be ensured “that the religious character of such place of worship is maintained,” the amendment says.While introducing the Bill and responding to the objections of Opposition MPs, MoS Nityanand Rai had said in the Lok Sabha that the Bill had provided for the process of returning the assets to the organisation after it regains its certificate. He said the Bill was aimed at making the use of foreign funding transparent. “The Modi government will not tolerate anyone who works against the Constitution, laws and national interest…This Bill is dangerous for those who have ill intentions, those who want to carry out forcible religious conversions using foreign funding,” Rai said.Why has it led to a controversy?Opposition leaders have expressed concerns over the Bill, saying it could be used to target Christian minority institutions. Kerala Chief Minister Pinarayi Vijayan on Monday wrote to Prime Minister Narendra Modi asking that the Bill be withdrawn.The main concern expressed was that the Bill would allow the cancellation of FCRA certification in case the renewal application is not processed or rejected within the stipulated time, leading to the assets being controlled by the designated authority. He said that in case of technical or procedural delays, the registration could be cancelled, leading to the Central government taking over the assets of the institution. This, he said, had led to concerns among religious institutions.Story continues below this adSpeaking on the campaign trail in Kerala on Monday, Congress leader Rahul Gandhi, too, hit out at the government over the Bill. He said the Bill would benefit the RSS, while “charitable and other community welfare organisations” would be left at the mercy of the Central government.Damini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. Expertise Key Coverage Areas: Damini Nath currently specializes in reporting on two crucial beats: Housing and Urban Affairs: Providing in-depth analysis and reporting on India's urban development, policy, and housing issues. Election Commission (EC): Offering authoritative coverage of electoral processes, policies, and the functioning of India's constitutional body responsible for conducting elections. Professional Background: Her extensive experience includes roles as a reporter and sub-editor, demonstrating a comprehensive understanding of the journalistic process from fieldwork to final production. Previous Role: Before joining The Indian Express in 2022, she served as a dedicated reporter with The Hindu’s national bureau, where her reporting portfolio included: Culture Social Justice Housing and Urban Affairs The Election Commission beat (a consistent area of focus). Trustworthiness Damini Nath's decade-plus career at two of India's most respected and authoritative news institutions, The Indian Express and The Hindu, underscores her commitment to factual, impartial, and high-quality reporting, establishing her as a trusted and credible source for news on urban governance and electoral matters. ... Read More © The Indian Express Pvt LtdTags:Express Explained