Government Vs. NGOs — Transparency or crackdown?
Watch
a heated debate on “We the people” a popular
television program anchored by Ms. Barkha Dutt and now on You
Tube: https://www.youtube.com/watch?v=TZquk5pqIOU
a heated debate on “We the people” a popular
television program anchored by Ms. Barkha Dutt and now on You
Tube: https://www.youtube.com/watch?v=TZquk5pqIOU
The
debate veers around two key issues:
debate veers around two key issues:
1)
Should board members and officers of NGOs be asked to make their personal assets
public or is this a new clash between government and NGOs?
Should board members and officers of NGOs be asked to make their personal assets
public or is this a new clash between government and NGOs?
2)
Is the Lokpal Act being diluted by keeping the heat on NGOs instead of
bureaucrats and politicians?
Is the Lokpal Act being diluted by keeping the heat on NGOs instead of
bureaucrats and politicians?
We, at CAP, watched
the debate and smiled occasionally and
sighed at other times!
the debate and smiled occasionally and
sighed at other times!
In our view, the non-profit sector is far more
regulated than the for-profit sector. But, the non-profit sector has always
been given a bad name and hanged.
regulated than the for-profit sector. But, the non-profit sector has always
been given a bad name and hanged.
The trouble is, there is no consistency in our
laws. Under the Constitution of India, “charity’ is a State and not a
Central subject. Hence in Western India (Maharashtra, Gujarat, Rajastan and Madhya
Pradesh) we have Public Trusts Acts and rather ‘over-active’ offices of the
Charity Commissioner (who also plays role of Registrar of Societies). But, a
trust in Delhi or Bangalore files returns only with the Income tax (and Ministry
of Home Affairs only if registered under FCRA).
laws. Under the Constitution of India, “charity’ is a State and not a
Central subject. Hence in Western India (Maharashtra, Gujarat, Rajastan and Madhya
Pradesh) we have Public Trusts Acts and rather ‘over-active’ offices of the
Charity Commissioner (who also plays role of Registrar of Societies). But, a
trust in Delhi or Bangalore files returns only with the Income tax (and Ministry
of Home Affairs only if registered under FCRA).
In Maharashra alone there are about half a
million registered trusts and societies (but these also include religious and
temple trusts and societies).
million registered trusts and societies (but these also include religious and
temple trusts and societies).
Thus, all of Western India files returns with
charity commissioner at the state level, income tax at the central level and
MHA (if registered under FCRA). In between there are other labour related
compliance (including shops & establishments act) and several other
registrations and compliances there under, depending of the nature of
activities.
charity commissioner at the state level, income tax at the central level and
MHA (if registered under FCRA). In between there are other labour related
compliance (including shops & establishments act) and several other
registrations and compliances there under, depending of the nature of
activities.
It is alleged that NGOs handle “public funds” hence they should be more accountable than the Government or
the Corporate Sector.
the Corporate Sector.
But, where does government get its funds from?
The public, through taxes!
The public, through taxes!
Where does the corporate sector get funds
from? The public, through investors!
from? The public, through investors!
So why punish only NGOs!
No one is against transparency and
accountability at an organizational level. But, why must board members who
serve on NGO boards in a fiduciary capacity and without remuneration be
compelled to declare their private wealth in public? By what logic or legal
definition does a trustee or an officer become ‘public servant’ merely because
more than one million Indian rupees is received from a foreign source, which
again is private funding for charitable causes in India and to fill gaps in the
Government of India’s own delivery system!
accountability at an organizational level. But, why must board members who
serve on NGO boards in a fiduciary capacity and without remuneration be
compelled to declare their private wealth in public? By what logic or legal
definition does a trustee or an officer become ‘public servant’ merely because
more than one million Indian rupees is received from a foreign source, which
again is private funding for charitable causes in India and to fill gaps in the
Government of India’s own delivery system!
Noshir
H. Dadrawala
H. Dadrawala