In the last hearing on the writ petition filed by advocate Manohar Lal Sharma, the Supreme Court had noted that NGOs get “mind-boggling” funds and this has become a “major problem” without an effective law to regulate the flow of money.
It had considered the possibility of referring the task of framing the law to the Law Commission of India.
CBI records filed in the Supreme Court show that only 2,90,787 NGOs out of a total of 29,99,623 registered under the Societies Registration Act file annual financial statements.
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, out 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.
Among other States, Uttar Pradesh, which has the highest number of NGOs at 5.48 lakh among 26 States, has only about 1.19 lakh filing returns. Tamil Nadu has about 1.55 lakh NGOs registered but only 20,277 file returns. Andhra Pradesh has 2.92 lakh NGOs, though only 186 file financial statements annually. West Bengal has 2.34 lakh registered NGOs, of which only 17,089 active NGOs file annual returns.
The Supreme Court had expanded the scope of Mr. Sharma’s PIL plea alleging misuse of funds by Anna Hazare’s NGO Hind Swaraj Trust to include the status of all NGOs.
Agency says they do not even provide for the NGOs to be transparent about their finances.
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