SC recommends law for regulating govt funds to NGOs to avoid misuse
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).”