Krishnadas Rajagopal

NEW DELHI JANUARY 10, 2017 14:49 IST

UPDATED: JANUARY 11, 2017 00:02 IST

Asks govt. to book those that fudged accounts, swindled money

The Supreme Court on Tuesday directed the government to audit nearly 30 lakh NGOs which received public funds but consistently failed to explain how they spent the money.

A Bench of Chief Justice of India J.S. Khehar and Justices N.V. Ramana and D.Y. Chandrachud was hearing a writ petition filed by advocate Manohar Lal Sharma.

It ordered that any NGO found to have cooked its books or indulged in misappropriation should be subject to immediate criminal prosecution. Besides, the government should initiate civil recovery proceedings against such rogue organisations.

The Supreme Court demanded that the government file a compliance report by March 31.

The judicial order is unprecedented because defaulting NGOs so far have been only blacklisted by the government.

Pulling up the government for failing to put in place a regulatory mechanism to keep a watch on the financial activities of NGOs and voluntary organisations, the apex court ordered that by next hearing, the government should have framed guidelines for their accreditation, the manner in which these organisations should maintain their accounts and the procedure for recovery in case they fail to submit their balance sheets.