SC directs Centre to submit action taken Report on taming NGOs misusing public funds

15 Aug 2017

August 15, 2017

Apex Court said, We need to know what actions have been taken.

Today, the Supreme Court today asked central govt. body 'CAPART' to apprise it about the steps taken in pursuance to its direction to consider making law to regulate the NGOs; disbursal of funds & consequential proceedings against these NGOs.

A bench headed by Chief Justice of India J. S. Khehar sought an affidavit from the CAPART (Council for Advancement of People's Action & Rural Technology) on action taken on its 26th April order by which it had suggested that Centre should consider prosecuting NGOs or voluntary organisations if they're found misusing the Public funds.

The bench, also comprising Justice D. Y. Chandrachud said "CAPART shall file an affidavit indicating the steps taken by it in pursuance of our directions passed on 26th April; we need to know what actions have been taken by them." Posted the matter for hearing on 17th August.

The SC had in its 26th April order asked the Centre to examine enacting a law to regulate the disbursal of the public funds to around 32 lakh NGOs & voluntary organisations (VOs) & prosecute them in case of misuse/misappropriation.

The Top Court had suggested the Centre that it can legislate under Entry 97 of the Seventh Schedule of the Indian Constitution which provides the List of issues on which the Centre/states or both can make laws to regulate the NGOs.

Favoring a fresh all-encompassing law, the court had said if the govt "desires to extend the statutory status to regulations, then they'd not only provide for enforceable consequences; but also envisage civil & criminal action as may be considered by the legislation."

'CAPART' works under the Ministry of Rural Development & disburses funds to voluntary organisations (VOs) working in rural areas, it had earlier apprised the Apex Court that it has recommended lodging of 159 FIRs against NGOs for alleged misuse/misappropriation of the funds.

Initially it had said that it had blacklisted 718 NGOs for not following the due process & not submitting their accounting details; but had later removed only 15 NGOs from the blacklist after they complied with the accounting norms.

While hearing a PIL filed by lawyer M. L. Sharma, the Court had said the Centre and its depts. were doling out crores of rupees but weren't aware of repercussion of non-auditing.

Referring to details provided by Senior Advocate Rakesh Dwivedi, amicus curiae, the court said that a phenomenal amount of ₹950 crore every year was being given by the Centre & state govts to NGOs.

The SC bench had also said that "mere blacklisting" of these organisations wouldn't suffice; civil & criminal action should be initiated for misappropriation of public money received by them from various govt depts.

Source PTI

Related News @ Latest Laws -

5.7.2017 - High Court directs State Govt. to join hands with NGOs for resolving Education related issues

6.4.2017 - Centre places its draft Guidelines before SC providing stringent regulatory mechanism for NGOs

13.1.2017 – Zakir Naik’s NGO petitions High Court against ban imposed by Centre Govt.

11.1.2017 – SC directs Centre for mandatorily Audit all NGOs & formulate a regulatory mechanism to monitor their Funds

15.12.2016 – SC tells NGO: Bring solid evidence to back graft charges against very high functionary like PM

14.9.2016 – Unaccounted flow of funds to NGOs a major problem: SC

1.6.2016 – Indira Jaising’s NGO ‘Lawyers’ Collective’ suspended for 6 months by Home Ministry

13.7.2015 – Prominent NGO’s Director arrested for sodomising Children after intoxicating them

1.8.2015 – Its Raining NGOs in India, 31 Lakhs and counting

18.9.2015 – CBI told Supreme Court, 90% of 30 Lakhs NGOs failed to submit their Financial Details