Centre submits draft guidelines to regulate NGOs
All non-government organisations (NGOs) receiving or desirous of receiving government funds will have to mandatorily register themselves with the Niti Aayog or an agency notified by the Centre for registration and accreditation, the NDA government told the Supreme Court on Wednesday.
The government submitted a set of draft guidelines to streamline the functioning of NGOs detailing the norms for their registration, accreditation, release of funds, monitoring, auditing of accounts, disciplinary procedures and dispute resolution.
“In future, all funds to NGOs/VOs (voluntary organisations) should be released through the Public Funds Management Systems (PFMS),” stated the Centre’s guidelines that prescribed a three-tier monitoring of NGOs.
In an affidavit filed in the court, the Centre said the objective of the exercise was “To create an enabling environment for NGOs/VOs that stimulates their enterprise and effectiveness, and safeguards their autonomy.”
According to the guidelines – which would come into force from the date notified by the government – executive committee members of the NGO concerned will have to execute a bond in favour of the President of India for the sanctioned amount and NGOs receiving government funds through false and misleading information will be blacklisted. Misappropriation of funds would attract criminal prosecution and signatories will be jointly and severally liable to refund the amount.
Submitting the draft guidelines before a bench headed by Chief Justice of India JS Khehar, Additional Solicitor General Tushar Mehta said these would be finalised in two weeks. The bench asked the government to consult amicus curiae senior counsel Rakesh Diwedi.
The court was hearing a PIL filed by advocate ML Sharma seeking proper guidelines to regulate over 30 lakh NGOs, many of which were not properly audited. He had demanded action against activist Anna Hazare for not subjecting his NGO to audit.
Sharma had alleged that 80 per cent of the NGOs received foreign funds and there are 30 lakh NGOs in the country and there was no legal framework to properly regulate them. Unless some mechanism is put in place centrally, nothing can be done.
Haryana and Punjab accounted for 1,00,611 and 84,752 NGOs, respectively. Many other states had much more NGOs. According to a report filed by the CBI, Maharashtra (5.18 per cent), Uttar Pradesh (5.48), Kerala (3.69), West Bengal (2.34), Tamil Nadu (1.55), Andhra Pradesh (2.92) and Madhya Pradesh (1.36) had much greater number of NGOs.
Under the proposed guidelines, NGOs will be given a unique ID and subjected to the Income Tax Act and Foreign Contribution Regulations Act. The NGOs must submit the audited accounts, IT returns, area of operation and names of key personnel.
The NGOs will only be granted accreditation after evaluating their internal governance and ethical standards. The past record of the NGOs too will be put under scrutiny before accreditation.
Source: http://www.tribuneindia.com/news/nation/ngos-must-register-with-niti-aayog-govt-to-sc/387529.html
All non-government organisations (NGOs) receiving or desirous of receiving government funds will have to mandatorily register themselves with the Niti Aayog or an agency notified by the Centre for registration and accreditation, the NDA government told the Supreme Court on Wednesday.
The government submitted a set of draft guidelines to streamline the functioning of NGOs detailing the norms for their registration, accreditation, release of funds, monitoring, auditing of accounts, disciplinary procedures and dispute resolution.
“In future, all funds to NGOs/VOs (voluntary organisations) should be released through the Public Funds Management Systems (PFMS),” stated the Centre’s guidelines that prescribed a three-tier monitoring of NGOs.
In an affidavit filed in the court, the Centre said the objective of the exercise was “To create an enabling environment for NGOs/VOs that stimulates their enterprise and effectiveness, and safeguards their autonomy.”
According to the guidelines – which would come into force from the date notified by the government – executive committee members of the NGO concerned will have to execute a bond in favour of the President of India for the sanctioned amount and NGOs receiving government funds through false and misleading information will be blacklisted. Misappropriation of funds would attract criminal prosecution and signatories will be jointly and severally liable to refund the amount.
Submitting the draft guidelines before a bench headed by Chief Justice of India JS Khehar, Additional Solicitor General Tushar Mehta said these would be finalised in two weeks. The bench asked the government to consult amicus curiae senior counsel Rakesh Diwedi.
The court was hearing a PIL filed by advocate ML Sharma seeking proper guidelines to regulate over 30 lakh NGOs, many of which were not properly audited. He had demanded action against activist Anna Hazare for not subjecting his NGO to audit.
Sharma had alleged that 80 per cent of the NGOs received foreign funds and there are 30 lakh NGOs in the country and there was no legal framework to properly regulate them. Unless some mechanism is put in place centrally, nothing can be done.
Haryana and Punjab accounted for 1,00,611 and 84,752 NGOs, respectively. Many other states had much more NGOs. According to a report filed by the CBI, Maharashtra (5.18 per cent), Uttar Pradesh (5.48), Kerala (3.69), West Bengal (2.34), Tamil Nadu (1.55), Andhra Pradesh (2.92) and Madhya Pradesh (1.36) had much greater number of NGOs.
Under the proposed guidelines, NGOs will be given a unique ID and subjected to the Income Tax Act and Foreign Contribution Regulations Act. The NGOs must submit the audited accounts, IT returns, area of operation and names of key personnel.
The NGOs will only be granted accreditation after evaluating their internal governance and ethical standards. The past record of the NGOs too will be put under scrutiny before accreditation.
Source: http://www.tribuneindia.com/news/nation/ngos-must-register-with-niti-aayog-govt-to-sc/387529.html
