India, Aug. 10 -- The proposed amendments to the Foreign Contribution (Regulation) Act seek to strengthen India's ability to regulate foreign-funded organisations and, more importantly, what happens to the institutional assets created through foreign contributions. The significance of the changes lies not in giving the government a new power to find out where foreign money is being spent. That power already exists. The more consequential change is what happens to foreign-funded assets when an organisation ceases to have a valid FCRA registration.

Under the existing FCRA, an organisation receiving foreign contribution is required to account for the money it receives and how it is utilised. The government can inspect its accounts and recor...