The apex court asked Centre to examine enacting a law to regulate government funds for NGOs and prosecute them in case of misuse, misappropriation of funds or non-filing of annual statements.
HIGHLIGHTS
· 1
Nearly 30 lakh NGOs across the country came under the Supreme Court's scrutiny on Tuesday.
· 2
The apex court asked Centre to examine enacting a law to regulate government funds for NGOs
· 3
Between 2002 and 2009, the Union and state governments released Rs 6,654 crore to various NGOs.
Nearly 30 lakh NGOs across the country - most of which receive funds worth crores of rupees from the government and abroad - came under the Supreme Court's scrutiny on Tuesday.
The apex court asked Centre to examine enacting a law to regulate government funds for NGOs and prosecute them in case of misuse, misappropriation of funds or non-filing of annual statements.
This was after a CBI report filed in the Supreme Court said only 10 per cent of 30 lakh NGOs have filed annual income and expenditure statements.
Between 2002 and 2009, the Union and state governments released Rs 6,654 crore to various NGOs, averaging almost Rs 950 crore per year, according to information received through RTI queries by Asian Centre for Human Rights, amicus curiae (senior lawyer assisting the court) Rakesh Dwivedi said, quoting the report. The Centre has been asked to file its response within eight weeks.
NEED OF MORE REGULATION
A bench, headed by CJI JS Khehar, said the existing regulations were not sufficient to "regulate the NGOs across the country, the disbursal of funds and consequential defaults".
Earlier in the day, Council for Advancement of People's Action and Rural Technology (CAPART) said it had recommended registration of 159 FIRs against various NGOs for alleged misappropriation or misuse of funds disbursed to them. The CAPART which works under the ministry of rural development and disburses funds to voluntary organisations working in rural areas, said initially, it had blacklisted 718 NGOs for not following the due process and not submitting their accounting details.SHOW CAUSE NOTICE
Under fire from the SC for not doing enough to rein in NGOs and voluntary organisations not filing annual statements and indulging in other irregularities, the Centre drafted guidelines saying the errant NGOs will be blacklisted.
"A show-cause notice is to be issued to the NGO with a direction to take corrective action immediately in case of non-submission of utilisation certificate or where the ministry/department suspects a material irregularity, or misutilisation misappropriation or falsification. In case of continued noncompliance, the NGO or voluntary organisation will be blacklisted, said the guidelines.
Passing detailed orders on the PIL by Advocate ML Sharma in 2011 seeking a tab on functioning of NGOs, the bench said mere blacklisting of NGOs who do not file annual statements will not suffice but also action must be initiated like criminal proceedings for misappropriation and civil action for recovery of given funds.
Source: http://indiatoday.intoday.in/story/supreme-court-ngos-regulation-centre/1/939415.html
HIGHLIGHTS
· 1
Nearly 30 lakh NGOs across the country came under the Supreme Court's scrutiny on Tuesday.
· 2
The apex court asked Centre to examine enacting a law to regulate government funds for NGOs
· 3
Between 2002 and 2009, the Union and state governments released Rs 6,654 crore to various NGOs.
Nearly 30 lakh NGOs across the country - most of which receive funds worth crores of rupees from the government and abroad - came under the Supreme Court's scrutiny on Tuesday.
The apex court asked Centre to examine enacting a law to regulate government funds for NGOs and prosecute them in case of misuse, misappropriation of funds or non-filing of annual statements.
This was after a CBI report filed in the Supreme Court said only 10 per cent of 30 lakh NGOs have filed annual income and expenditure statements.
Between 2002 and 2009, the Union and state governments released Rs 6,654 crore to various NGOs, averaging almost Rs 950 crore per year, according to information received through RTI queries by Asian Centre for Human Rights, amicus curiae (senior lawyer assisting the court) Rakesh Dwivedi said, quoting the report. The Centre has been asked to file its response within eight weeks.
NEED OF MORE REGULATION
A bench, headed by CJI JS Khehar, said the existing regulations were not sufficient to "regulate the NGOs across the country, the disbursal of funds and consequential defaults".
Earlier in the day, Council for Advancement of People's Action and Rural Technology (CAPART) said it had recommended registration of 159 FIRs against various NGOs for alleged misappropriation or misuse of funds disbursed to them. The CAPART which works under the ministry of rural development and disburses funds to voluntary organisations working in rural areas, said initially, it had blacklisted 718 NGOs for not following the due process and not submitting their accounting details.SHOW CAUSE NOTICE
Under fire from the SC for not doing enough to rein in NGOs and voluntary organisations not filing annual statements and indulging in other irregularities, the Centre drafted guidelines saying the errant NGOs will be blacklisted.
"A show-cause notice is to be issued to the NGO with a direction to take corrective action immediately in case of non-submission of utilisation certificate or where the ministry/department suspects a material irregularity, or misutilisation misappropriation or falsification. In case of continued noncompliance, the NGO or voluntary organisation will be blacklisted, said the guidelines.
Passing detailed orders on the PIL by Advocate ML Sharma in 2011 seeking a tab on functioning of NGOs, the bench said mere blacklisting of NGOs who do not file annual statements will not suffice but also action must be initiated like criminal proceedings for misappropriation and civil action for recovery of given funds.
Source: http://indiatoday.intoday.in/story/supreme-court-ngos-regulation-centre/1/939415.html
