NITI AAYOG To Ensure NGOS CAN’T Deceive OR Trick the Government

NITI AAYOG To Ensure NGOS CAN’T Deceive OR Trick the Government

Tightening its grip on lakhs of non-government organisations (NGOs) and voluntary organisations (VOs) operating as societies, trusts, or foundations under various laws, the Centre has introduced a tough guideline making it mandatory for such organisations falling under these categories to register with the NITI Aayog and supply details of its funding, audited accounts, and past and present projects.

The information will test the credentials of NGOs/VOs before the Government releases grants. The Government can even crack down on defaulters for violations under the Income Tax Act or the Foreign Contribution Regulatory Act (FCRA).

The Centre submitted the draft Accreditation Guidelines prepared by the Rural Development Ministry before the Supreme Court, which by an order of January 10, 2017 had asked the Government to frame such guidelines. A Bench of Chief Justice of India JS Khehar and Justice DY Chandrachud directed amicus curiae senior advocate Rakesh Dwivedi to examine the documents and give suggestions after two weeks. The Centre will notify the guidelines after incorporating the suggestions.

Interestingly, the Centre’s toughening of stand against the NGOs has come on a PIL filed by advocate ML Sharma in 2011 against an NGO run by social activist Anna Hazare. The said NGO, Hind Swaraj Trust, had received huge Central funds from CAPART (Council for Advancement of People’s Action and Rural Technology) and grants from the then Maharashtra Government.

But it provided no utilisation certificates to the authorities. The SC had broadened the scope of the PIL and directed Central Bureau of Investigation (CBI) to identify such NGOs that failed to submit annual utilisation certificate with the Government after taking huge sums of money as Central grants.

The proposed guidelines also allow the Government to proceed with criminal case against NGOs which misappropriate funds. As per the new guidelines, the terms and conditions in the sanction order for grants will require the executive committee of the NGOs/VOs to execute a bond in favour of the President of India making them liable to refund the amount at 10 per cent annual interest if funds are not properly utilised. The guidelines even allow the Centre to stop the grant without notice if it is dissatisfied with the progress of the commissioned project.

Additional Solicitor General (ASG) Tushar Mehta, who appeared for the Centre, submitted that the “Guidelines for Accreditation of NGOs/VOs” will cover all societies, trusts, foundations, and not-for-profit companies registered under 28 laws across the country to be accredited under one body, preferably the NITI Aayog. The database to be maintained by a web portal of NITI Aayog will require information on public and foreign funds received by the NGOs/VOs, audited accounts, ongoing and past projects undertaken, areas of specialisation, and list of members with their Aadhaar identification at the time of applying for grant-in-aid. Based on this registration, a unique ID will be issued to all NGOs.

If the grant is approved, the money shall be released not by individual Ministries but through a common source, Public Funds Management Systems. The monitoring of fund utilisation shall be done at the Central, State and District levels, besides at the level of NITI Aayog that will examine the physical, financial and qualitative aspects of the project for which money is commissioned. All accounts of NGOs that avail over Rs25 lakh in grant or loan will be open to audit by Comptroller and Auditor General and suppression of any material fact or giving false information will lead to blacklisting of the NGO and its members.

Source: Pioneer