Union Cabinet Approves Bill to Manage Assets of Organisations Losing FCRA Licences

New Delhi, March 19, 2026: The Union Cabinet has approved a bill to amend the Foreign Contribution (Regulation) Act (FCRA), 2010, aiming to strengthen oversight of foreign funds and ensure better management of assets held by organisations that lose their licences.

The proposed Foreign Contribution (Regulation) Amendment Bill, 2026, seeks to introduce clear timelines for the receipt and utilisation of foreign contributions, removing ambiguities in the current legal framework. The move is intended to enhance transparency, accountability and legal certainty in the handling of foreign funds.

A key provision of the bill establishes a statutory mechanism that allows the government to take control of assets created using foreign contributions when an organisation’s FCRA registration is suspended, cancelled, surrendered or not renewed. Authorities will be empowered to maintain records, safeguard such assets and ensure their lawful use or disposal.

The amendment also introduces a new Section 14B, which provides for the “deemed cessation” of FCRA registration upon expiry or refusal of renewal, further clarifying existing provisions.

In addition, the bill enables the government to prescribe a validity period for receiving and utilising foreign contributions. It proposes a reduction in the maximum imprisonment for unauthorised receipt of foreign funds to one year and mandates prior approval from the Centre before initiating criminal proceedings under the Act.

Officials said the amendments aim to address long-standing concerns over the handling of assets belonging to organisations whose licences have been cancelled, ensuring such resources are neither misused nor left unaccounted.

India currently has around 16,000 FCRA-registered organisations, which collectively receive nearly ₹22,000 crore annually. The proposed changes are expected to tighten oversight of these inflows while safeguarding national and public interest.

Union Cabinet Approves Bill to Manage Assets of Organisations Losing FCRA Licences

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