New Delhi: Union Minister of State for Home Affairs, Nityanand Rai, on Wednesday introduced The Foreign Contribution (Regulation) Amendment Bill, 2026, in the Lok Sabha during the ongoing budget session.

The proposed legislation seeks to amend the Foreign Contribution (Regulation) Act, 2010, with the objective of strengthening transparency and accountability in the utilisation of foreign funds in India.

Government defends need for amendments

During the proceedings, Rai presented the Bill on behalf of Union Home Minister Amit Shah. He underlined that the amendment was necessary to uphold service, transparency, and the national interest.

Addressing the House, Rai said he believed the proposed changes were vital and should not face opposition. He noted that certain provisions in the existing law had lacked clarity during implementation, which resulted in administrative challenges.

Opposition raises constitutional concerns

The Bill encountered strong resistance from several members. Congress MP Manish Tewari criticised the proposal, arguing that it involved excessive delegation of key legislative powers.

Tewari stated, "The Bill enables wide and unguided executive control over property, including the provisional and permanent vesting of assets in a designated authority. This raises serious concerns under Article 300A of the Constitution. The Bill concentrates adjudicatory, executive, and quasi-judicial powers in the same authority, undermining the principles of natural justice and separation of powers."

He further added, "The provisions enabling the takeover and disposal of assets, even where partly funded by non-foreign sources, are manifestly disproportionate and may have a chilling effect on civil society activity, undermining the constitutional guarantee under Article 19(1)(c)."

TMC calls bill ‘Draconian’

Trinamool Congress MP Pratima Mondal also opposed the measure, describing it as "draconian" and expressing concern over the concentration of authority.

"This is a draconian Bill. It centralises disproportionate authority in the executive, weakening institutional checks and federal balance. The requirement of prior approval from the Union Government before initiating criminal proceedings under the Act introduces an element of executive filtering and unchecked discretion. Thus, I oppose the introduction of this Bill," she said.

Rai responds to criticism

Responding to the objections, Rai reiterated that the Bill was intended to enhance oversight of foreign contributions and ensure greater transparency and accountability.

"Honourable Chairperson, regarding this amendment bill, I would like to say very briefly that I felt this was such an essential amendment for service, transparency, and the national interest that it would not be opposed. During the implementation of the Act, it was felt that there is some lack of clarity in certain provisions, which led to administrative difficulties," he stated.

Addressing Tewari’s concerns, Rai said, "The policy for the management and disposal of assets is defined within the Act itself. This Bill distinguishes between temporary and permanent vesting, giving organisations a chance to regularise their status."

He further defended the proposal while responding to Mondal’s remarks, stating, "This is only 'dangerous' for those whose intentions are flawed, those who take foreign funds for illegal conversions, for fraud, or for personal gain. This Modi government will not tolerate anyone working against the spirit of the Constitution and the national interest. This Bill is meant to make the use of foreign contributions transparent and accountable."

Bill introduced after voice vote

Despite the opposition voiced by members, the Chair, Krishna Prasad Tenneti, proceeded to put the motion to a voice vote, following which the Bill was formally introduced in the House.

Agency inputs