PUBLISHED: 23:22 GMT, 21
March 2014 | UPDATED: 23:22 GMT, 21 March 2014
Thousands of NGOs which receive foreign aid, many of whom do not file
returns on such contributions, are vulnerable to terror funding and money
laundering, the home ministry has warned.
Though there are more than 22,000 NGOs registered under the Foreign Contribution
Regulation Act (FCRA), intelligence inputs indicate that there are many others
that work secretly and are not registered.
On the other hand, 19,000 of the registered organisations do not file
returns on foreign contributions.
Foreign funding for NGOs has risen by almost 12 per cent in 2011-12,
with Rs 11,549 crore being pumped into these organisations from abroad every
year, according to the home ministry's latest report on the FCRA.
According to the report, foreign contributions worth Rs 2,253 crore come
for activities other than the most common causes listed by the Ministry of Home
Affairs for foreign contributions.
The common sectors for foreign funding are rural development, welfare of
children, health, awareness camps and religious purposes.
"We need to know where this money is being used. We need to
coordinate with the authorities of the donor countries and crack down on some
of these NGOs," said an official in the home ministry.
The five major donor countries are the US, Britain, Germany, Italy and
Netherlands. Countries like the UAE, Mauritius, Austria, Sweden and Spain are
also among the top 15 donor nations.
"Appropriate action has been/is being taken for non-compliance of
statutory obligations," the report stated.
"The number of associations reporting receipt and utilisation of
foreign contribution is increasing.
However, it is a matter of concern that a large number of registered
associations do not submit their statutory annual returns mandated by the
law," the FCRA report added.
This has made intelligence agencies sceptical about the nature of work
of some NGOs that are under the scanner.
Sources said there could even be some NGOs that that are funded by
foreign countries and involved in "suspicious activities".
Based on estimates by the home ministry, there are approximately 20 lakh
NGOs across India and less than 2 per cent are registered for foreign funding.
The number of NGOs receiving foreign funding has increased in the past
few years.
NGOs in Delhi, Tamil Nadu, Andhra Pradesh and Maharashtra receive the
highest funding.
