Supreme Court pulls up Centre for no mechanism to monitor NGO funds

NEW DELHI: The Supreme Court on Tuesday ordered Modi government to undertake the massive exercise of auditing over 30 lakh NGOs that have received government funds but failed to explain how it was spent.

The court also asked the government to recover these funds and take criminal action in cases in which it has been misspent. NGOs and voluntary organisations receive over Rs 9000 crore by way of grants from various ministries.

But only 3 lakh odd NGOs among 33 lakh across India file balance-sheets or expenses with the ministries. These include funds disbursed by Capart, an autonomous body, under the rural development ministry.

A bench led by Chief Justice of India J S Khehar also directed the Centre to put in place a mechanism to ensure timely audit and checks to prevent misuse of public funds. Under the current dispensation, they are only blacklisted.

The 2005 financial rules, which mandate audit, are ignored.