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.