India, March 25 -- The Centre on Wednesday introduced a bill in the Lok Sabha to amend the foreign funding law, proposing the creation of a "designated authority" empowered to take over, manage, and transfer or sell assets created from foreign funds when an organisation's registration is cancelled, surrendered, or not renewed.

The Foreign Contribution Regulation Amendment Bill, 2026, also proposes to reduce the maximum imprisonment for violations of foreign funding laws from five years to one year, and to fix timelines for the utilisation of foreign funds received under the prior permission category.

Introducing the bill, Union minister of state for home affairs Nityanand Rai asserted that "the Modi government will not tolerate any misu...