Go after defaulting NGOs, ensure audits by March 31: SC tells centre

The apex court directed the CBI to ensure that the audits at NGOs are completed and a compliance report submitted to the court by March 31

Go after defaulting NGOs and submit a compliance by March 31, the Supreme Court directed the Union Government on Tuesday. The court directed the Central Bureau of Investigation to ensure that the audits at NGOs are completed and a compliance report submitted to the court by March 31.

Frame guidelines for accreditation of NGOs to entitle them to receive public funds in future, the court also ruled. While hearing a petition the court took very serious view of government's granting thousands of crores of rupees to NGOs and not seeking utilisation of funds. Between 2002 and 2008, the centre had granted Rs 4,756 crore to NGOs which state governments had given Rs 6,654 crore.

You will have to detect and punish these NGOs which have taken public funds and not submitted utilisation certificates, the court also ordered the government. The CBI informed the court that there are nearly 33 lakh NGOs in India out of which only 3 lakh have filed audited accounts with authorities.

The court said that non-compliance of mandatory audit of accounts by NGOs receiving public funds should make them liable to civil and criminal action. The court also said that the governments should recover the funds granted to NGOs in case it has misused the same. In case of misuse go ahead and prosecute the NGOs for the same the bench also held.