{"id":19,"date":"2026-03-28T17:15:00","date_gmt":"2026-03-28T17:15:00","guid":{"rendered":"https:\/\/lexemer.com\/articles\/?p=19"},"modified":"2026-05-10T15:52:41","modified_gmt":"2026-05-10T15:52:41","slug":"key-changes-in-the-foreign-contribution-regulation-amendment-bill-2026","status":"publish","type":"post","link":"https:\/\/www.lexemer.com\/articles\/key-changes-in-the-foreign-contribution-regulation-amendment-bill-2026\/","title":{"rendered":"Key Changes in the Foreign Contribution (Regulation) Amendment Bill, 2026"},"content":{"rendered":"\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7] wp-block-paragraph\">The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and use of foreign contributions in India. The Foreign Contribution (Regulation) Amendment Bill, 2026 has been introduced to amend the 2010 Act and fill certain operational and legal gaps.<\/p>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The main objective of the Bill is to create a statutory framework for the supervision, management, and disposal of foreign contributions and related assets. This becomes particularly relevant where an organisation&#8217;s registration is cancelled, surrendered, or ceases to exist.<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Updated Legal References<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The Bill brings FCRA references in line with the new legal codes:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">References to the Code of Criminal Procedure, 1973 are replaced with the Bharatiya Nagarik Suraksha Sanhita, 2023.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">References to the Indian Penal Code are replaced with the Bharatiya Nyaya Sanhita, 2023.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">References to the Companies Act, 1956 are updated to the Companies Act, 2013.<\/li>\r\n<\/ul>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">New Definitions<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Two new administrative roles have been defined:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\"><strong>Administrator<\/strong>: appointed by the Central Government.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\"><strong>Designated authority<\/strong>: appointed by the Central Government to oversee asset management.<\/li>\r\n<\/ul>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A definition for <strong>&#8220;key functionary&#8221;<\/strong> has also been inserted. It includes:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">Directors of companies<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Partners in firms<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Trustees<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The Karta of a Hindu undivided family<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Other office bearers or managing committee members<\/li>\r\n<\/ul>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Note that this definition is broad and brings a wide set of persons within the scope of personal liability u\/s 39 (discussed below).<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Certificates and Prior Permissions<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The Bill tightens the rules on registration and prior permissions:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">A certificate of registration is valid for exactly five years.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Prior permissions are limited to a specific purpose or amount.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Funds received under prior permission must be received and utilised within a prescribed timeframe.<\/li>\r\n<\/ul>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A new <strong>Section 14B<\/strong> introduces the concept of &#8220;cessation&#8221;. A certificate is deemed to have ceased on the expiry of its validity if:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">An application for renewal is not made, or<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The application is refused, or<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The certificate is not renewed before the deadline.<\/li>\r\n<\/ul>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Once the certificate ceases, the entity cannot receive or utilise foreign contributions.<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Restrictions During Suspension<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Organisations with suspended certificates cannot alienate, encumber, or otherwise deal with assets created out of foreign contributions. Any such dealing requires the prior approval of the Central Government.<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Asset Management under Chapter IIIA<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Section 15 is omitted entirely and replaced with a new Chapter IIIA on asset management.<\/p>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The working of the chapter:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">If an entity&#8217;s certificate is cancelled, surrendered, or ceases, its foreign contributions and related assets will provisionally vest in the Designated authority.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">If the organisation fails to obtain a fresh certificate or renewal within the prescribed period, the assets will vest permanently in the Designated authority.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The authority may then transfer the assets to the government or dispose of them through sale.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Proceeds from any sale will be credited to the Consolidated Fund of India.<\/li>\r\n<\/ul>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Safeguard for Places of Worship<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A specific safeguard has been included. If an asset that vests in the Designated authority is a place of worship, its management will be entrusted to an eligible person in a manner that maintains its religious character.<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Revised Penalties<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Section 35 is substituted to rationalise the punishment regime:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">Contraventions of the Act are now punishable with imprisonment of up to one year, or fine, or both.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Earlier, the maximum imprisonment was five years.<\/li>\r\n<\/ul>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Extended Corporate Liability<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Section 39 is amended to widen personal liability. Where an offence is committed by an organisation, every key functionary in charge at the time is deemed guilty and liable to be punished.<\/p>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The defences available are limited. The key functionary must prove:<\/p>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">The offence happened without their knowledge, or<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">They exercised due diligence to prevent it.<\/li>\r\n<\/ul>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Prior Approval for Investigations<\/h2>\r\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A new safeguard has been added u\/s 43. No investigation into offences punishable under the Act can be initiated without the prior approval of the Central Government.<\/p>\r\n<h2 class=\"text-text-100 mt-3 -mb-1 text-[1.125rem] font-bold\">Some Points to Note<\/h2>\r\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\r\n<li class=\"whitespace-normal break-words pl-2\">The Bill significantly changes the framework for dealing with foreign funded assets post cancellation or cessation.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">Personal liability on office bearers and trustees has been widened through the new &#8220;key functionary&#8221; definition.<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The reduction in imprisonment from five years to one year rationalises the penalty, relief?<\/li>\r\n<li class=\"whitespace-normal break-words pl-2\">The requirement of prior central government approval for investigations adds a procedural check against misuse at lower levels.<\/li>\r\n<\/ul>\r\n<ul class=\"wp-block-list\"><\/ul>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and use of foreign contributions in India. The Foreign Contribution (Regulation) Amendment Bill, 2026 has been introduced to amend the 2010 Act and fill certain operational and legal gaps. The main objective of the Bill is to create a statutory framework for the supervision, management, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-19","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fcra"],"_links":{"self":[{"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/posts\/19","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/comments?post=19"}],"version-history":[{"count":4,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/posts\/19\/revisions"}],"predecessor-version":[{"id":131,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/posts\/19\/revisions\/131"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/media\/20"}],"wp:attachment":[{"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/media?parent=19"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/categories?post=19"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lexemer.com\/articles\/wp-json\/wp\/v2\/tags?post=19"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}