SC Gives Centre Four Weeks To Decide On Regulating NGOs

The Supreme Court today gave the Centre four weeks time do decide if it will bring in a legislation or guidelines 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 Additional Solicitor General Tushar Mehta submitted that certain instructions needed to be taken "from the top level" if to bring out a legislation or draft some guidelines and also include some penal provisions.

"See these are serious issues. Make a fair decision.Our direction is already there. Just implement it to give the authorities more teeth", a bench headed by Chief Justice J S Khehar told the ASG.

The bench earlier expressed unhappiness over the proposed guidelines to keep a tab on the nearly 30 lakh NGOs saying “it may not meet the enormity of the situation”, that is problems faced due to the non-accountability of the funds given to the NGOs since decades.

“We get to know that Rs 950 crore is being given in total to all NGOs every year. This is a phenomenal amount..tax payers money..since 78 ministries and departments were granting money to NGOs, a law on regulating funds and work by NGOs would be much better. Inform us in eight weeks whether you want to streamline NGOs through guidelines or through legislation”, the bench had told the government.

On April 5 Centre had submitted to the Supreme Court fresh draft guidelines for accreditation of NGOs and Voluntary Organisations.

On direction from the bench of Chief Justice J S Khehar and Justice D Y Chandrachud, Additional Solicitor General Tushar Mehta who submitted the draft guidelines had handed over a copy to Amicus curiae Rakesh Dwivedi for including his suggestions and inputs.

The court was hearing a PIL filed by advocate M L Sharma for keeping a tab on the functioning of the NGOs.

The draft guidelines said existing portal at NITI Ayog, NGO-Darpan will be the nodal agency for the purpose of registration and accreditation of NGOs and Voluntary organizations seeking funds from government of India

Questioning the transparency in their functioning, the Supreme Court had in January ordered compulsory audit by March 31, 2017 of nearly 30 lakh NGOs, most of them who receive funds worth crores of rupees from the government and abroad.

The SC order came after Amucus Dwivedi cited a CBI report that only 10 per cent of NGOs filed annual income and expenditure statements.

Raising the issue of transparency regarding their functioning, the CBI report filed in the court said that out of 22,39,971 NGOs in 20 states (information from nine states is awaited), only 2,23,428 have filed their balance sheet, a paltry ten per cent