Unaccounted flow of funds to NGOs a ‘major problem’: SC

ngos


Unaccounted flow of funds to NGOs a ‘major problem’: SC

Noting that a lack of law to regulate the “mind-boggling” funds NGOs get annually is a “major problem”, the Supreme Court on Wednesday stepped in to consider directing the Law Commission of India to recommend the Centre to frame an effective law to control and watch the flow of money to a total 29.99 lakh NGOs functioning in the country.

NGOs

“This is a major problem. They are getting money from all over the world. Mind-boggling…” Chief Justice of India T.S. Thakur observed.

The Bench, also comprising Justice A.M. Khanwilkar, appointed senior advocate Rakesh Dwivedi as amicus curiae to assist it in finding a way to deal with the issue and, if necessary, refer to the Law Commission.

“This is a major problem. They are getting money from all over the world. Mind-boggling…” Chief Justice of India T.S. Thakur observed.

Advocate M.L. Sharma, who filed the petition, submitted that 80 per cent of the NGOs get foreign funds. He claimed that “retired government employees and politicians run these NGOs drawing on their influence.”

“We can refer to the Law Commission to bring a law to control the NGOs… at least for the future, we want to know whether we can do some exercise to regulate these organisations,” Chief Justice Thakur observed, posting the case for urgent hearing on Monday next.

Advocate M.L. Sharma, who filed the petition, submitted that 80 per cent of the NGOs get foreign funds. He claimed that “retired government employees and politicians run these NGOs drawing on their influence.”

To this, the CJI reacted: “What is an NGO? Anyone can register a society and it becomes an NGO… There is no legal brainwork done at the Central level to control them. Unless some mechanism is put in place centrally, nothing can be done”.

NEW DELHI, September 14, 2016