NRI funds for NGOs to come under stringent check system
The government may create a stringent check system to track the flow of funds from non-resident Indian to Indian NGOs. Global Indian
By Rajat Guha, TNN |
NEW DELHI: The government may create a stringent check system to track the flow of funds from non-resident Indian to Indian NGOs. This follows complaints about misuse and diversion of such funds.
Minister of state for industry Ashwini Kumar has assured NRI groups in the US and Canada that checks and scrutiny would be put in place soon to track end-use of funds in India.
Last week, during the Pravasi Bharatiya Divas, some NRI groups from the US and Canada had met Mr Ashwini Kumar, apprising him of the instances when the NRI businessmen feel insecure about the end-use of the funds given to Indian NGOs. The government has assured them it would soon be made mandatory that only registered voluntary organisations can access funds from the NRIs.
“It has been often noticed that funds that voluntary organisations receive are sometimes siphoned off. NRIs, therefore, would be advised to donate funds to the organisations that have sustainable upcoming or ongoing welfare projects,” a senior government official said.
Complaints have been received by the government where NGOs have been offered money for building schools, hospitals and other properties for public welfare, but the construction has not taken place in years for proposed projects. In the past, there have been reports of funds from voluntary sector being diverted to fund terror.
“The end-use of NRI funds in India is also a matter of concern as the NRIs are eager to prop up the country’s infrastructure for welfare by pumping in their hard-earned money. The philanthropy should not go waste if funds fall in the hands of unscrupulous organisations,” an official said.
Minister of state for industry Ashwini Kumar has assured NRI groups in the US and Canada that checks and scrutiny would be put in place soon to track end-use of funds in India.
Last week, during the Pravasi Bharatiya Divas, some NRI groups from the US and Canada had met Mr Ashwini Kumar, apprising him of the instances when the NRI businessmen feel insecure about the end-use of the funds given to Indian NGOs. The government has assured them it would soon be made mandatory that only registered voluntary organisations can access funds from the NRIs.
“It has been often noticed that funds that voluntary organisations receive are sometimes siphoned off. NRIs, therefore, would be advised to donate funds to the organisations that have sustainable upcoming or ongoing welfare projects,” a senior government official said.
Complaints have been received by the government where NGOs have been offered money for building schools, hospitals and other properties for public welfare, but the construction has not taken place in years for proposed projects. In the past, there have been reports of funds from voluntary sector being diverted to fund terror.
“The end-use of NRI funds in India is also a matter of concern as the NRIs are eager to prop up the country’s infrastructure for welfare by pumping in their hard-earned money. The philanthropy should not go waste if funds fall in the hands of unscrupulous organisations,” an official said.
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