What is the issue?
- The Home Ministry has issued notices for failing to file mandatory annual returns for three successive years starting 2009-2010.
- It has asked over 10,000 NGOs, why their licences should not be cancelled after they failed to file their annual returns of foreign aid.
- The Home Ministry orders also said the NGOs which have filed returns should furnish copies and proof of submission.
- Andhra Pradesh accounts for the largest number of defaulting associations (1,441), followed by UP (1,167) and Tamil Nadu (1,108).
What Data say?
- A MHA report says there are more than 20 lakh NGOs but less than 2 per cent of them (43527) were registered till March 31, 2012.
- According to a Home Ministry report, NGOs receive over Rs 11,500 crore in foreign funds annually.
- Crackdown on NGOs
- Earlier this year, the Ministry issued notice to 22,702 of the 43,527 registered NGOs under FCRA.
- They had failed in submitting annual return under Foreign Contribution (Regulation) Act.
- The Ministry had invoked section 46 of FCRA.
Who are main defaulters?
- Some of the defaulters' are the University of Delhi, Jawaharlal Nehru University.
- Supreme Court Bar Association, Indian Council for Agriculture Research
- YMCA units in many States.
What are the rules?
- As per rules, associations registered under FCRA 2010 must submit annual report in Form FC-6 to Union Home Secretary.
- It should be accompanied by an income and expenditure statement, receipt and payment account, balance sheet for every financial year.
- It should be filed within nine months of closure of the financial year.
- Associations which do not receive any foreign contribution are also required to furnish a 'NIL' return.