New Delhi, Jan 10: The Supreme Court on Tuesday directed Modi government to initiate the auditing over 30 lakh NGOs that received funds from the government but were unable to explain how it was spent.
The apex court also ordered the Centre to recover these funds and take criminal action against those who have misspent the funds. NGOs and voluntary organisations receive over Rs 9000 crore by way of grants from various ministries.
However, only 3 lakh out of 33 lakh NGOs all over India reported about their expenses with the ministries. These include funds spent by Capart, an autonomous body, under the rural development ministry.
The bench led by Chief Justice of India JS Khehar also asserted Centre that it should organize a mechanism which ensures timely audits and checks to prevent misuse of public funds.
The bench also asked the officials to inform it whether CAG audit of NGOs post 2009 was carried out or not. The bench also asked whether General Financial Rules 2005 made by Ministry of Finance were complied with or not.
The court was hearing a plea filed by advocate M L Sharma, seeking monitoring of funds given to NGOs and their utilisation by them.