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On 12 August 2026 the Lok Sabha adopted a motion referring the Foreign Contribution (Regulation) Amendment Bill, 2026 to a Joint Parliamentary Committee, amid opposition protests demanding the Bill's withdrawal.
The motion was moved by Minister of State for Home Affairs Nityanand Rai; the JPC will have 31 members - 21 from the Lok Sabha nominated by Speaker Om Birla and 10 from the Rajya Sabha nominated by Chairman C.P. Radhakrishnan.
The committee must report to the Lok Sabha by the last day of the first week of the 2026 Winter Session of Parliament.
The Bill, introduced on 25 March 2026 by the Ministry of Home Affairs, creates a Designated Authority to take over the foreign contributions and assets of organisations that lose FCRA registration.
It also widens the liability of 'key functionaries', cuts maximum imprisonment from five years to one year, and requires prior central government approval before any FCRA offence can be investigated.
The first Foreign Contribution (Regulation) Act is enacted to regulate foreign funding of associations.
The 1976 Act is repealed and replaced by the Foreign Contribution (Regulation) Act, 2010, the law in force today.
The FCRA (Amendment) Act tightens the regime - the administrative-expenses cap falls from 50% to 20%, transfer or sub-granting of foreign contribution to any other person is prohibited, Aadhaar is required for office bearers, and every recipient must open an FCRA account at the SBI New Delhi Main Branch, Sansad Marg.
The Foreign Contribution (Regulation) Amendment Bill, 2026 is introduced in the Lok Sabha by the Ministry of Home Affairs.
The Lok Sabha refers the Bill to a 31-member Joint Parliamentary Committee amid opposition protests.
The JPC report is due to the Lok Sabha by the last day of the session's first week.
The parent law. It regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies, and is administered by the Ministry of Home Affairs. Registration or prior permission is compulsory before foreign funds can be received.
Cut the ceiling on administrative expenses from 50% to 20% of foreign contribution received, barred transfer or sub-granting of foreign contribution to any other person even if that person is FCRA-registered, made Aadhaar mandatory for office bearers, and required an FCRA account at the SBI New Delhi Main Branch.
Creates a government-appointed Designated Authority for the vesting, supervision, management and disposal of foreign contribution and assets of an organisation whose certificate ceases to be valid. Where a vested property is a place of worship, the Authority must preserve its religious character.
Asset vesting is no longer confined to cancellation or voluntary surrender. It extends to failure to apply for renewal, failure to renew before expiry, and refusal of renewal.
Directors, partners, trustees, office bearers of societies and any other person responsible for management are presumed liable for an offence unless they prove it happened without their knowledge or that they exercised due diligence.
Reduces the maximum term of imprisonment from five years to one year, but requires the prior approval of the central government before an investigation into any offence under the Act can be initiated.
A JPC is an ad hoc committee drawn from both Houses, set up for a specific bill or subject and dissolved once it submits its report. It is constituted by a motion adopted in one House and concurred in by the other. Members are nominated by the Speaker for the Lok Sabha and by the Chairman for the Rajya Sabha, and Lok Sabha members are conventionally about twice the Rajya Sabha members - here 21 and 10. A JPC can call for documents and summon officials and experts, but its recommendations are advisory: the government is not bound to accept them, and the Bill still returns to the House to be passed, amended or dropped. Recent examples include the JPCs on the Waqf (Amendment) Bill, 2024 and on the One Nation One Election bills.
Simple Analogy: Think of it as sending a disputed draft to a joint review panel of both Houses before the full House votes - the panel can question everyone involved and suggest changes, but the final call still belongs to Parliament.
GS Paper II > Parliament and State Legislatures - Structures, Functioning, Conduct of Business; Role of NGOs and Civil Society
General Awareness > Indian Polity and Current Affairs
Under FCRA 2010, any donation, delivery or transfer of currency, article or security made by a foreign source to a person or association in India.
The new body proposed by the 2026 Bill to take over, manage and dispose of the foreign contribution and assets of an organisation whose FCRA certificate ceases to be valid.
A person responsible for the management of an organisation - director, partner, trustee or office bearer - who under the 2026 Bill is presumed liable for an FCRA offence unless lack of knowledge or due diligence is proved.
A parliamentary committee appointed for a specific purpose that ceases to exist once it completes its task and reports, unlike a standing committee which is permanent.