FOREIGN CONTRIBUTION REGULATION (AMENDMENT) ACT, 2020: BALANCING TRANSPARENCY AND ACCOUNTABILITY
AUTHOR – SAGAR SINGH* & DR. NIKUNJ SINGH YADAV**
* LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA
** ASSISTANT PROFESSOR, LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA
BEST CITATION – SAGAR SINGH & DR. NIKUNJ SINGH YADAV, FOREIGN CONTRIBUTION REGULATION (AMENDMENT) ACT, 2020: BALANCING TRANSPARENCY AND ACCOUNTABILITY, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (9) OF 2026, PG. 296-311, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
The Foreign Contribution Regulation (Amendment) Act, 2020[1] introduced significant changes to India’s regulatory framework governing the acceptance and utilisation of foreign contributions by individuals, associations, and non-governmental organisations (NGOs). The amendment was enacted with the objective of enhancing transparency, accountability, and governmental oversight in the management of foreign funds, while also addressing concerns relating to national security and misuse of foreign contributions. Key amendments include restrictions on transfer of foreign contribution, reduction in permissible administrative expenses, mandatory Aadhaar identification for office bearers, and compulsory opening of designated bank accounts in the State Bank of India, New Delhi branch.
This research paper critically examines the legal and constitutional dimensions of the 2020 amendment and evaluates whether the legislation successfully balances transparency with democratic freedoms. The study analyses the impact of the amendment on NGOs, civil society organisations, and grassroots welfare activities. It further examines judicial interpretation of the amendment, particularly in Noel Harper v. Union of India[2], where the Supreme Court upheld the constitutional validity of the law while recognising the State’s authority to regulate foreign funding in the interest of sovereignty and public order.
The paper adopts a doctrinal research methodology based on analysis of statutes, judicial decisions, government reports, journal articles, and secondary legal sources. The study concludes that although the amendment strengthens financial accountability and monitoring mechanisms, it also imposes substantial compliance burdens that may adversely affect the functioning and autonomy of civil society organisations. Therefore, a balanced and proportionate regulatory approach is necessary to ensure that accountability measures do not undermine democratic participation, humanitarian work, and freedom of association in India.
[1] The Foreign Contribution Regulation (Amendment) Act, 2020.
[2] Noel Harper v. Union of India, (2022) 10 SCC 1.