Make law to tighten the noose around NGOs: SC to Centre

NEWDELHI: There is need for a law to regulate NGOs, disbursal of funds to them and consequential proceedings on account of defaults, the Supreme Court said on Wednesday, while asking the government to examine the feasibility of having a legislation to tighten the noose around nonprofit organisations.

A bench headed by Chief Justice JS Khehar took a view that the existing or proposed guidelines were not sufficient against the “unaccountable” NGOs that have been getting grants from government agencies for decades now. “We are not happy with the guidelines. You must crystallise them. Those (NGOs) who are clear are clear. If not, then blacklist and prosecute them,” the bench told the counsel appearing for the Centre. The law, it said, should not only provide for enforceable consequences but also envisage civil and criminal action.

The court suggestion came after CAPART — a registered society under the ministry of rural development — informed the bench that it had initiated criminal proceedings against 159 voluntary organisations (VOs) for misappropriation of funds.

CAPART, however, also admitted that its infrastructure was insufficient to take meaningful action in respect of finances disbursed to the NGOs and VOs, prompting the court to talk about a legal framework.

“Position placed on record by CAPART does not reveal the entire factual position since it is only one of the 76 ministries/ agencies distributing funds,” the court noted.