Hindustan Times (Lucknow)

SC recommends law for regulating govt funds to NGOs to avoid misuse

- Bhadra Sinha bhadra.sinha@hindustant­imes.com n

NEWDELHI: There was a 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.

It asked the government to examine the feasibilit­y of a legislatio­n to tighten the noose around non-profit organisati­ons.

The bench headed by Chief Justice JS Khehar took a view that the existing or proposed guidelines were not sufficient act against “unaccounta­ble” NGOs that have been getting grants from government agencies for decades. “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,” it said. 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 a meaningful action, 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.

Centre had on the last hearing placed the proposed guidelines before the top court, saying it would be mandatory for NGOs to register themselves with Niti Aayog - a government think tank that provides inputs for public policy.

The top court is hearing a PIL regarding non-action against NGOs that have not filed their audits.

“You cannot expect Niti Aayog to start registerin­g NGOs, keep a tab and take action. It’s just not possible,” the bench said after perusing the guidelines.

Shocked to know that government disburses ₹950 crore every year to NGOs, the court said: “You cannot allow public funds to go waste. There is no assessment to what happened to all that money given to them (NGOs).”

Newspapers in English

Newspapers from India