The Press Information Bureau has clarified the proposed designated authority clause in the Foreign Contribution (Regulation) Amendment Bill, 2026. The clarification matters because the clause affects how assets created from foreign contributions will be handled after an organisation’s registration under foreign contribution law ends.

The government’s explanation seeks to address criticism that the clause could amount to automatic confiscation or arbitrary control. It says the designated authority would manage only those assets created from foreign contributions after lawful cessation of registration, and the arrangement would remain provisional if registration is later renewed.

What the government has clarified

According to the Press Information Bureau, the proposed arrangement has these features:

The designated authority would deal only with assets created from foreign contributions after registration has lawfully ceased.If registration is renewed later, the management arrangement would be provisional.Places of worship would retain their religious character.The designated authority’s orders can be revised and appealed before the district judge.

Background and earlier position