Center and Supreme Court tighten the screws to make NGOs more accountable for their actions

The Supreme Court on Wednesday directed the Center to try and enact a law which would ensure regulation of government funds and prosecution of those NGOs which indulge in misappropriation of funds or fail to file annual statements.

If enacted, such a law would be a welcome step, as according to a CBI report in 2015, out of about 31 lakh NGOs operating in the country which received their funds from the govt and/or abroad, only a paltry 10% had filed their balance sheet.

The Supreme Court bench stated that about 950 crores of the tax-payers’ money every year was being disbursed to various NGOs, hence a law which would regulate the working and funding of the NGOs would be a welcome step.

- Advertisement - - Article resumes -

This direction of the Supreme Court comes after the Center had submitted draft guidelines to the Supreme Court on 5th April which were intended to ensure greater accountability of NGOs and Voluntary Organisations (VO) which received Government funding.

These guidelines were submitted by the Additional Solicitor General Tushar Mehta after being directed by the bench of Chief Justice J S Khehar and Justice D Y Chandrachud.

These guidelines required the organisations to register afresh at the NGO Darpan portal operated by the NITI Aayog. This registration required details of the organisation’s past work, fund utilization, yearly audit reports and the key persons.

In the event of the organizations not utilizing or misusing the funds that were granted by the government, they would need to refund the whole or partial amount with 10% interest.

Furthermore a show cause notice would also be issued to the NGO to take corrective action if utilization certificate is not submitted or a material irregularity, missutilization or falsification is suspected. Plus in case of misappropriation of funds, a criminal investigation against key officials of the organisation would be initiated and the organisation would be blacklisted.

The Supreme Court bench though feels that these guidelines may not be enough as they may not be very effective in meeting the enormity of regulating about 30 lakh NGOs operating in the country.

While tighter norms may be a reality in the future, the government Council for Advancement of People’s Action and Rural Technology, which is responsible for disbursing funds to the NGOs, is doing its bit to ensure greater transparency. It has recommended that FIRs be filed against 159 NGOs for mishandling of funds and has also claimed to have blacklisted 718 NGOs for not following due process.

Even though this may be a good start, it might not be enough considering the number of organizations involved. But going by the events it is clear that NGOs won’t be allowed any financial free run just because they claim to be involved in working for the betterment of the society.

Contributor at OpIndia.com,
Wish to write a great trilogy someday!

Share and Support:
Support OpIndia by paying for content

Most read articles recently

Activist opposing Akshaya Patra’s mid-day meal contract thinks ‘Brahmins obstruct India’s development’

The Akshaya Patra has come under criticism recently for not including onion and garlic in its mid-day meals for school children.

Mumbai Police teaches a lesson in humility to ‘special’ Sonam Kapoor

Actor Dulquer Salman clarified that he and Sonam were sitting inside a car that was rigged to a truck and hence were not breaking traffic rules.

Here is what connects attack on Akshaya Patra, French NGO against Rafale and demonization of Amarnath Yatra

The web of foreign-funded NGOs that demonised the Amarnath Yatra, French NGO that complained against Rafale in France and the demand to remove Akshaya Patra from midday meals contract

Rafale: SC examined the pricing details closely, ‘did not rely’ on CAG report as claimed by Rahul Gandhi

Rahul Gandhi has claimed that the Supreme Court verdict on Rafale was based only on the CAG report, while it is not true

Uttar Pradesh: Eight cattle smugglers arrested in Bahraich with arms and ammunition

The smugglers even tried to trample the police personnel with their vehicle.

Double whammy for Congress in court: After Rafale verdict, Rakesh Asthana’s appointment as special director gets SC approval

The Supreme Court's verdict is being seen as the second major embarrassment for both the Congress party and Prashant Bhushan, as the Supreme Court had earlier rejected a plea on the issue of a probe concerning the Rafale deal.

Church of South India Archbishop Dyvasirvadam arrested in church fund scam, reports Times of India

According to the report, archbishop Dyvasirvadam was allegedly involved in misappropriation of church fund for over a decade

Zee News issues defamation notice of Rs 1000 crore to Congress leader Navjot Singh Singh

Sidhu had allegedly threatened the Zee News when he had said “nani yaad dila denge” after Zee News had shown a video ‘Pakistan Zindabad’ slogans were raised at an election rally

Congress friendly journalist wishes death upon BJP Delhi spokesperson Tajinder Bagga

During the run-up to Gujarat assembly elections last year, Trivedi was caught spreading morphed images with Amit Shah's fake quotes on Patidars

Pro-Congress troll resumes fake news website, makes outlandish claims on Rafale targeting Modi

Abhishek Mishra has been associated with the website which spreads fake news and Islamist propaganda

Latest articles

Connect with us

125,699FansLike
98,067FollowersFollow
6,249SubscribersSubscribe

Don't miss these