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


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

  • Noting that NGOs get “mind-boggling” funds and it has become a “major problem,” the Supreme Court said it will consider asking the Law Commission of India to bring an effective law to regulate the flow of money to a total 29.99 lakh NGOs functioning in the country.
  • Retired government employees and politicians run these NGOs drawing on their influence.
  • The CBI records filed in the Supreme Court in the case show that only 2,90,787 NGOs file annual financial statements of a total of 29,99,623 registered ones under the Societies Registration Act.
  • In some States, the CBI said the laws do not even provide for the NGOs to be transparent about their financial dealings.
  • In the Union Territories, of a total of 82,250 NGOs registered and functioning, only 50 file their returns.
  • New Delhi has the highest number of registered NGOs among the Union Territories at 76,566. But none of these organisations submit returns, the CBI chart showed.
  • In Kerala, which has 3,69,137 NGOs, there is no legal provision to submit returns.
  • The same is the case for Punjab with 84,752 and Rajasthan with 1.3 lakh NGOs.