India Bill to Seize Foreign-Funded Assets Referred to Parliamentary Panel

The Bharatiya Janata Party-led government in India has proposed new amendments to the Foreign Contribution (Regulation) Act, 2010, through the Foreign Contribution (Regulation) Amendment Bill, 2026. After significant opposition, the bill has been forwarded to a Joint Parliamentary Committee (JPC) for further review.

What Happened

The proposed legislation introduces stringent measures concerning foreign funding received by registered organizations. A key provision allows for the automatic transfer of an organization's assets, including those built with foreign contributions, to a government-designated authority upon the lapse or refusal of a registration certificate. Such assets would only be recoverable if the organization successfully re-registers within an unspecified period. The bill also states that buildings constructed even partially with foreign funds can be fully acquired by the government, with organizations needing to reapply for the portion not financed by foreign money. While an appeal process to a district judge is permitted for actions taken by the authority regarding property, appeals against the refusal to renew a certificate are not allowed, and organizations are not entitled to a hearing before such a refusal is made.

Why It Matters

Minority religious institutions, particularly Christian organizations operating schools, colleges, and hospitals funded by overseas churches and congregations, have expressed alarm over the bill's implications. These organizations rely heavily on foreign contributions for their operations and infrastructure. Protests have occurred in various regions, including Aizawl in Mizoram, with organizations in Kerala also voicing objections. The Chief Minister of Nagaland has requested a parliamentary review, and the Tamil Nadu Assembly has unanimously passed a resolution seeking the bill's withdrawal. The Home Minister has assured that the bill will not be applied retrospectively, though the bill's text appears to contradict this assurance by allowing the takeover of older assets if a certificate has lapsed.

Key Facts

• The Foreign Contribution (Regulation) Amendment Bill, 2026, has been referred to a Joint Parliamentary Committee (JPC).
• The bill proposes that foreign funds and assets built with them will automatically pass to a government-designated authority upon the lapse or refusal of a registration certificate.
• Buildings constructed partially with foreign funds may be taken over in full by the government.
• An appeal is permitted to a district judge regarding the authority's actions on property, but not against the refusal to renew a certificate.
• Organizations are not entitled to a hearing before a renewal refusal.
• Christian organizations, which run numerous educational and healthcare institutions funded internationally, have voiced significant concerns.
• Protests have occurred in Aizawl, Mizoram, and organizations in Kerala have objected.
• The Chief Minister of Nagaland wrote to the Home Minister seeking a parliamentary review.
• The Tamil Nadu Assembly unanimously resolved that the Centre should withdraw the bill.
• The Home Minister assured church leaders that the bill would not be retrospective.

Background

Previous amendments to the Foreign Contribution (Regulation) Act in 2020 restricted registered bodies from passing funds to others, even those registered under the same act. These amendments also reduced the allowable proportion of foreign funds for administrative expenses from half to one-fifth.