Two officials held over alleged bribe to facilitate FCRA registration

The Delhi Police Special Cell has arrested two government officials for allegedly seeking illegal gratification from an association in exchange for facilitating its pending registration under the Foreign Contribution (Regulation) Act (FCRA), the Ministry of Home Affairs (MHA) said on Tuesday.

One of the accused is currently posted as a senior accountant in the MHA's Foreigners Division, while the other, an accountant, is posted in a Pay and Accounts Office and had previously served in the Foreigners Division.

The two were arrested on Monday following a tip-off from the MHA. Police are also examining whether the officials were involved in facilitating other FCRA registrations or renewals in the past.

Officials allegedly approached association for payment

According to the MHA, the officials allegedly approached an association and sought illegal gratification to help clear its pending FCRA registration.

“Preliminary questioning indicates that the two officials were in contact with certain associations to facilitate their registration and renewal in exchange for illegal gratification,” an MHA spokesperson said.

The police are now probing their alleged role in similar cases and whether other associations were approached by the officials.

The FCRA regulates the receipt and use of foreign contributions by Indian individuals, associations, NGOs, trusts and companies. The legislation specifies who can receive foreign contributions and lays down requirements governing how such funds, securities or articles received from overseas sources must be accepted, accounted for and reported.

The law is administered by the MHA through its Foreigners-II Division, which regulates foreign contribution and foreign hospitality.

MHA says FCRA services are entirely online

The home ministry reiterated that FCRA-related services are provided through the official FCRA portal and that no intermediary, agent or individual has been authorised to facilitate registration, renewal or other such services.

The MHA has previously issued advisories warning associations and NGOs against fraudulent communications seeking payments for FCRA services. It has stated that applications for registration, renewal, prior permission, changes in details and other FCRA services must be made through the online portal, with applicable payments also made through the portal's payment gateway.

The latest arrests come as the government is also seeking to amend the regulatory framework governing foreign contributions.

India first enacted the FCRA in 1976 to regulate the acceptance and utilisation of foreign contributions. Parliament replaced that legislation with the FCRA, 2010, as cross-border financial flows and international engagement expanded. The framework was subsequently amended in 2016, 2018 and 2020.

The Foreign Contribution (Regulation) Amendment Bill, 2026, was introduced in the Lok Sabha on March 25. The revised FCRA Rules, 2026, were notified separately on June 22 and are already in force.

FCRA Bill proposes new framework for assets

A major provision of the 2026 Bill concerns the management of foreign contributions and assets created from such funds when an organisation's FCRA registration ceases.

The proposed legislation provides for a government-appointed Designated Authority to oversee the vesting, supervision, management and disposal of such foreign contributions and assets. Registration would be treated as having ceased not only when it is cancelled or surrendered, but also in cases where renewal is not sought, is denied or is not obtained before expiry.

Under the proposed framework, assets would initially vest provisionally with the Designated Authority. If an organisation subsequently obtains fresh registration, renewal or restoration within the prescribed period, the assets and unused foreign contribution would be returned. Permanent vesting could follow if registration is not restored within the stipulated period.

The authority would be able to transfer permanently vested assets to government ministries, departments or agencies for public purposes, or dispose of them through sale or other processes. The proceeds, along with unutilised foreign contribution, would be credited to the Consolidated Fund of India. The Bill also provides for an appeal against an order of the Designated Authority before a district judge.

The Bill also proposes changes to penalties, including reducing the maximum term of imprisonment for violations from five years to one year, while providing for coordinated investigations involving state agencies.

Bill referred to 31-member parliamentary panel

The proposed legislation was referred by the Lok Sabha to a 31-member Joint Parliamentary Committee (JPC) on August 12 for detailed examination. The panel comprises 21 members from the Lok Sabha and 10 from the Rajya Sabha.

Lok Sabha Speaker Om Birla subsequently constituted the committee, with BJP MP Sanjay Jaiswal appointed to head it. The panel is examining the proposed changes before the Bill proceeds further through the parliamentary process.

The asset-vesting provisions have drawn objections from Opposition parties, church bodies and other stakeholders, who have raised concerns about the scope of the proposed powers. The government has said the Bill is intended to strengthen transparency, accountability and regulatory clarity in the administration of foreign contributions.

The latest arrests have brought the functioning of the FCRA administration into focus as Parliament examines the proposed changes to the law.