“Light Regulation” for NGOs. Let’s keep our fingers crossed!
Readers may recollect that in
January 2017, the Supreme Court Bench of Chief Justice of India J.S.
Khehar and Justices N.V. Ramana and D.Y. Chandrachud has directed the
government to audit nearly 30 lakh NGOs which received public funds,
but, consistently failed to explain how they spent the money.
January 2017, the Supreme Court Bench of Chief Justice of India J.S.
Khehar and Justices N.V. Ramana and D.Y. Chandrachud has directed the
government to audit nearly 30 lakh NGOs which received public funds,
but, consistently failed to explain how they spent the money.
The
Supreme Court bench had given this decision in response to a writ
petition filed by Advocate Manohar Lal Sharma. The court had also
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 has also demanded
that the government file a compliance report by March 31, 2017.
Supreme Court bench had given this decision in response to a writ
petition filed by Advocate Manohar Lal Sharma. The court had also
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 has also demanded
that the government file a compliance report by March 31, 2017.
Now, a high-power committee
appointed by the Central government on the orders of the Supreme
Court has recommended several steps to ensure the “light
regulation” of non-governmental organisations (NGOs) so as to
reduce their harassment. A shortened version of the recommendations
is now before the Supreme Court, though the government is yet to
accept the full set.
appointed by the Central government on the orders of the Supreme
Court has recommended several steps to ensure the “light
regulation” of non-governmental organisations (NGOs) so as to
reduce their harassment. A shortened version of the recommendations
is now before the Supreme Court, though the government is yet to
accept the full set.
The committee, headed by S. Vijay
Kumar, a former Secretary in the Ministry of Rural Development, was
formed as part of the Centre’s response to the ongoing writ
petition filed by Manohar Lal Sharma. On the Supreme Court’s
suggestion, the committee has also drawn up a framework of guidelines
for the accreditation of NGOs (through Niti Ayog), audit of their
accounts, and procedures to initiate action for recovering grants in
case of misappropriation.
Kumar, a former Secretary in the Ministry of Rural Development, was
formed as part of the Centre’s response to the ongoing writ
petition filed by Manohar Lal Sharma. On the Supreme Court’s
suggestion, the committee has also drawn up a framework of guidelines
for the accreditation of NGOs (through Niti Ayog), audit of their
accounts, and procedures to initiate action for recovering grants in
case of misappropriation.
The committee has recommended
that:
that:
-
The registration procedures be
modernized so as to facilitate the seamless operation of the
applicable provisions of Income Tax Act and the Foreign Contribution
Regulation Act with respect to NGOs, without the need for cumbersome
and intrusive processes. -
Steps must be taken to reduce the
need for physical interface between NGOs and public officials acting
under the Income Tax Act and FCRA, along with reduction in mutual
distrust and scope for misuse. -
A separate law for voluntary
agencies engaged in activities of a charitable or “public good”
nature to enable more effective and efficient regulation of the
sector. -
Regulation should be ‘light’
and consistent with the fundamental rights, so as to give effect to
the objects for which voluntarism is being promoted. -
Replace various State-level and
existing Central laws with an overarching legislation with best
practices. -
Details of NGOs should be
available as searchable database information. -
The new framework should enable
‘national uniformity’ of approach following the principle of
‘cooperative federalism’. -
‘Light regulation’ of NGOs
All this sounds like a dream come
true. But, there is a wide gap and many a slip between good ‘intent’
and ‘implementation’. Hence, for the exciting and interesting
times that we presently live in, our fingers remain tightly crossed.
true. But, there is a wide gap and many a slip between good ‘intent’
and ‘implementation’. Hence, for the exciting and interesting
times that we presently live in, our fingers remain tightly crossed.
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