A delay in the year 2012 on part of the finance and corporate ministries ensured that several NGO's working contrary to the interest of the nation continued to receive foreign funds to the tune of several thousands of crores.
Right from the year 2010, the Intelligence Bureau (IB) had kept a watch on the functioning of several NGO's and it was found that the issue was going from bad to worse.
In 2012, the Ministry of Home Affairs moved a proposal to bring about strict curbs on NGO's bringing in foreign funds to work contrary to the economic interests of India.
The proposal never saw the light of the day and this was thanks to no move being made by the ministry of finance and corporate affairs.
Crores of rupees were pumped in:
Had the ministry of corporate affairs and finance acted upon the advise of the Home Ministry, several thousand crores of rupees would not have made its entry into India.
In the year 2011 NGO's got funding of Rs 538 crore for research work. The number jumped to Rs 2253 crore in 2012. It was found that the money was not being utilized correctly.
The government has earmarked 55 different categories for which NGO's can use foreign funding. The 55 categories would largely include work in the social and cultural field.
NGO's must cater to these categories if they need to have their license under the Foreign Contribution Registration Act.
However, the amount of Rs 2253 crore which was sent to NGOs in 2012 was spent contrary to the 55 categories that are mentioned as per the rules.
What was the money used for:
Documents in the possession of oneindia reveals that the 55 list category was not satisfied. An amount of Rs 125 crore was paid for religious preachers.
Hefty sums of money to the tune of Rs 500 crore was spent on arranging meetings and seminars. There was a considerable amount of money that was utilized for holding protests.
The protests had become the bone of contention as it was alleged that these were stage managed at the behest of foreign countries.
MHA found the need to amend laws:
The MHA based on the Intelligence Bureau report had stated that it was time to amend the laws and make the rules more stringent.
India was losing track and control over the NGO's who were getting in the foreign funds with ease and utilising it for purposes other than what was specified.
A proposal had been moved a proposal which required that a check be maintained on NGO's and their subsidiaries. It was also suggested that strict action be taken for money laundering.
However, this proposal which needed a clearance from both the Finance and Corporate Affairs ministry never went through.
There were repeated reminders by the Home Ministry that money laundering was taking place on a big scale and hence a crack down on the subsidiaries had become important.
21000 NGOs were placed under scanner:
Investigations had shown that there were nearly 21000 NGOs in the country which were bringing in illegal funds. NGO's had become subsidiaries for foreign governments to push money in to block developmental works.
A considerable number of NGO's were also found to have brought in funds as part of a money laundering racket. Not just the UK and the US, but NGOs with Pakistan and Chinese links too were found to part of this racket.
It was alleged that these NGO's had not filed their annual returns for the years 2011 and 2012 and this had raised a great deal of suspicion among the intelligence agencies.