What happened
The Union government has issued a background explanation on the vesting of assets created from foreign contribution when registration under the Foreign Contribution (Regulation) Act, 2010 ends. The proposed framework is meant to make the process clearer, time-bound, and linked to restoration of registration.
Background and earlier position
Under Section 15 of the existing law, assets created from foreign contribution vest in the Prescribed Authority when FCRA registration is cancelled. If the association later obtains fresh registration, foreign contribution and assets must be returned in accordance with law.
The background note says that over the last decade nearly 22,000 registrations have been cancelled and about 15,000 registrations have been deemed to have ceased, involving foreign contribution and assets worth thousands of crores of rupees. The note presents the proposed amendments as a response to this administrative and legal complexity.
What changes in the proposed framework
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