NGOs, NGO executives under Lokpal law; private sector bribes worry activists

Under the new rules, office bearers of such NGOs will be treated as "public servants" and charged under the anti-corruption law in case of financial irregularities.

By: PTI | New Delhi | Updated: July 28, 2016 12:49 pm
Lokpal, NGO, Lokpal bill, NGOs Lokpal, Lokpal NGOs NGO income, NGO law, Lokpal Act, anti corruption, news, India news, latest news, anti corruption NGOs, NGOs public servants, national news, Department of Personnel and Training, Non Government Organisations, Limited Liability Partnership firms, Companies Act 2013, Venkatesh Nayak, Access to Information Programme, Commonwealth Human Rights Initiative, United Nations Convention Against Corruption, private sector corruption All NGOs will fall under Lokpal, which would require them to file details of income and assets and would be treated as “public servants” to be charged under anti-corruption laws. (representational image; source: wikipedia)

All foreign and domestic-funded Non-Government Organisations (NGOs) will be under Lokpal, which will initiate an enquiry against them in the event of their involvement in corruption.

Besides, both the NGOs and their top executives will have to file details of income and assets before the proposed anti-corruption body.

As per the rules notified recently by Department of Personnel and Training (DoPT), NGOs receiving more than Rs 1 crore as government grant and donations above Rs 10 lakh from abroad will be under the ambit of the Lokpal.

Under the new rules, office bearers of such NGOs will be treated as “public servants” and charged under the anti-corruption law in case of financial irregularities.

These rules will apply to the NGOs, Limited Liability Partnership firms (LLPs)–which can be a law or real estate firm–or any such group partly or wholly financed by the central government. However, big corporates will be out of the ambit of Lokpal.

Anti-corruption activists have expressed concern over the government’s move to allegedly ignore private sector bribery by exempting such companies from the Lokpal’s jurisdiction.

“It is worrisome that the Lokpal Act and the recent notification of the DoPT relating to the monetary limit of government funding for societies, trusts, associations and LLPs to bring them under the jurisdiction of the Lokpal for purpose of corruption does not include private companies registered under the Companies Act 2013,” said Venkatesh Nayak, Programme Coordinator, Access to Information Programme, Commonwealth Human Rights Initiative–an NGO.

WATCH VIDEO: Govt Introduces Bill To Amend Lokpal Act Clause Pertaining To NGOs


He said since India has ratified United Nations Convention Against Corruption and, as per its provision, it is the duty of the government to take measures “to prevent corruption involving the private sector”.

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  1. A
    Jun 29, 2016 at 11:25 am
    Excellent Decision:lt;br/gt;Nobody will deny about the role of NGOs to serve the marginalised group/underserved potion but so many hidden truth are under carpet. Not all, but most of Board member/main functionaries are corrupt and they misuse the systems for making their personal wealth and they behave like Manager or company owner(Elite and Black English Man). A separate bill is required by GOI to refine the NGOs system actual gr root NGOs and people need to encourage (provide financial support by Banks) who are not having sufficient fund to serve the people. So called social worker or pseudo social worker need to discourage by the system. I challenge to NGOs receiving FCRA fund declare their all fund details with board member wealth (from starting to till date) voluntarily on their;br/gt;Some issues are important and need to address by these NGOs/Charity organisation are these:lt;br/gt;1. Transparency in NGOs (program wise received funds and utilization-it may be foreign fund or local) is big issue. Every details need to display on NGOs website and it should be come under RTI;br/gt;2. Declaration of wealth by every Board member/functionary on yearly basis (from start to till date and onwards), and they have to also declare family member wealth every year on organisation website lt;br/gt;3. Personal use of NGOs resources should be stopped and it should be declare by every board member/Functionary. ry or honorarium should be display on website if any NGOs member are enjoying that;br/gt;4. Most of staff working with NGOs are more vulnerable than people in community especially gr root worker (most of staff working only for job). They are unsecured, exploited and cheated by NGOs main functionaries. Every year list of staff, their education with ry details should be given to the GOI. lt;br/gt;5. Annual report should be publish in Hindi/Local Language with financial details and it should be available to anyone on demand (In PDF form on website should be compulsory).lt;br/gt;6. NGOs need not do commercial activity (GOI need to define the work) and if they do, they have to pay the income tax like private;br/gt;7. Monitoring and supervision of NGOs need to govern by GOI and it should be transparent any;br/gt;8. If any organisation is registered under charity organisation and running any setup, they have to display “Charitable organisation” boldly on the display board along with setup name and they have to also display that services are free or subsidised that are cheaper than any private;br/gt;9. Sometimes sender and receiver is the same from foreign, so insure signing authority in foreign and India should not be same.