Supreme Court has asked the Centre to examine enacting a law to regulate disbursal of public funds to over 32 lakhs Non-Governmental and voluntary organisations and prosecute them in case of misuse or misappropriation.
A bench headed by Chief Justice J S Khehar yesterday, referring to the Centre’s recent guidelines on regulating the NGOs and voluntary organisations said it may not truly systematise the entire process of regulating such NGOs.
The bench, also comprising Justices D Y Chandrachud and Sanjay Kishan Kaul asked the Government to examine and consider giving statutory status to the entire process of registration, disbursal of funds, their use, audit and consequential proceedings in the event of defaults. It also asked the Centre to apprise its stand within eight weeks on making a law on it.
Favouring a fresh all-encompassing law, the court said if the government desires to extend statutory status to regulations, then they would not only provide for enforceable consequences, but also envisage civil and criminal action as may be considered by the legislation.