SC asks Centre if it has plans to frame scheme to regulate fund disbursement to NGOs

The Supreme Court on Friday asked the Centre whether it has any plan to frame a "comprehensive" scheme to regulate disbursement of public funds to over 32 lakh NGOs and voluntary organisations in the country. A bench comprising Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala asked Additional Solicitor General K M Natraj, appearing for the Centre, to take instruction and apprise it.

"Is there any regulation mechanism on this?" the CJI asked.

"You (Centre) come with a comprehensive scheme, either legislative or administrative, to regulate," the bench said and asked the law officer to inform it about the government's stand.


The apex court had also earlier asked the Centre to examine enacting a law to regulate disbursal of public funds to NGOs and voluntary organisations and prosecute them in case of misuse or misappropriation.

The bench was hearing a PIL filed by lawyer M L Sharma.

The CBI had in September 2015 told the apex court that less than 10 per cent of over 30 lakh NGOs functioning across the country had submitted their returns or balance sheets and other financial details to the authorities.

The PIL has sought a probe into alleged embezzlement of funds by NGOs.