On the day it reached out to the Opposition in an attempt to break the deadlock in Parliament where proceedings remain disrupted, the government Wednesday signalled that the Foreign Contribution (Regulation) Amendment Bill, 2026 would not have any penalising retrospective provision.
Civil society and religious groups have expressed concern that asset-vesting rules in the Bill could be used to penalise past investments.
Sources told The Indian Express the introduction of the Bill during the ongoing monsoon session – it is scheduled to end August 13 – will depend on the Opposition’s readiness to allow a debate.
Jonathan Lalremruata, adviser and coordinator of the Catholic Bishops’ Conference of India, told The Indian Express: “When the CBCI delegation met the Home Minister, we were promised that the law will not be retrospective.”
A senior BJP leader too said, “It is a promise that the BJP has made to the minority groups.” Another BJP leader, who hails from a southern state, said, “The introduction of the Bill hopefully demolishes the propaganda by the Congress and other vested interests that this is meant to target Christians.”
Sources said Mizoram Chief Minister Lalduhoma is scheduled to meet Union Home Minister Amit Shah Thursday and this issue is expected to come up.
The concerns are over a framework for vesting assets created through foreign contributions with a government-designated authority when an organisation’s FCRA registration is cancelled, surrendered or ceases. This has caused anxiety among Christian organisations because many churches and institutions have been built using foreign contributions.
A senior government official, however, said the intent of the proposed law is to ensure continuity in the management of institutions if there is a break in their FCRA registration.
“Basically, it is to ensure that there is proper management of the institution if there is a discontinuity. There will be an interim management which will take care of the property and, if there is return of the original owner or institution, it will be handed back to them. We are very clear that a religious institution should be managed according to the practices of the religion to which it belongs. The Bill has been drafted accordingly,” the official said.
Critics have pointed to three provisions in the Bill. Section 14B introduces the concept of “cessation” of an FCRA certificate. It says a certificate is deemed to have ceased if an organisation does not apply for renewal, its renewal is refused or it expires without being renewed.
Section 16A provides that once a certificate has ceased, foreign contributions received by the organisation and assets created from them will vest in a Designated Authority. The authority can manage the assets and, if the organisation subsequently secures a fresh or renewed registration within the prescribed period, return them. If that does not happen, the assets permanently vest with the authority, which may transfer them to government departments or agencies or dispose in accordance with the law.
Section 16B applies the new framework to assets already vested under the earlier law before the amendment comes into force. Critics argue that, read together, these provisions could also affect organisations whose FCRA registrations had lapsed years ago. According to this interpretation, even organisations that had stopped receiving foreign donations and were functioning entirely on domestic funds could be brought within the new vesting framework because their certificates had “ceased”, potentially bringing assets such as schools, hospitals and community centres built with foreign contributions under the control of the Designated Authority. The government, however, has not stated in the Bill that this is its intended effect.
Meanwhile, Parliamentary Affairs Minister Kiren Rijiju met Leader of Opposition Rahul Gandhi Wednesday to seek his cooperation for smooth functioning of Parliament.
Sources said Rijiju, during the nearly 50-minute meeting with Gandhi, flagged the pending legislative agenda, including the proposed amendment to the FCRA and the possible re-introduction of a constitutional amendment Bill linked to the Delimitation Bill.
The government, sources said, did not get any commitment from the Opposition which reiterated its demand that Shah make a statement in the House on the police action on protesting students and youths in Delhi on July 20, and that Parliament discuss the alleged theft of donation money at the Ram temple in Ayodhya.
Congress sources said the party leadership told Rijiju that it was opposed to delimitation at this juncture and that there was no change in its stance on the issue. Rijiju asked the Congress to reconsider its position.
Speaking to The Indian Express, Rijiju said, “I have extended an offer to the LoP to engage in a conversation even if there are differences between the ruling side and Opposition. Let’s see what the Opposition comes up with. But, as of now, there is no proposal to extend the ongoing session.”
Congress leaders said the Opposition parties would deliberate on the issues raised by Rijiju before Parliament reconvenes Thursday morning.
The Congress has decided to consult other Opposition parties, including those which are not part of the INDIA bloc, to firm up a joint stand.
Sources said informal discussions are continuing with even the DMK, which has charted a separate course this session. The DMK has been upset with the Congress over its decision to snap ties with it and join hands with the Vijay-led TVK to form a government in Tamil Nadu after the recent Assembly elections.
The Congress camp, however, believes that the DMK, which had vocally opposed delimitation, would not shift its stance. “(Former Tamil Nadu CM) M K Stalin burnt a copy of the Delimitation Bill in April, calling it a black law. How can they support the Bill now? We don’t think the DMK will do that,” a senior Congress leader said.
Sources said there could be another round of discussion between Rijiju and Gandhi following which the two sides may work out their respective strategies.
Opposition MPs protest outside Parliament, Wednesday. (PTI) 
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