Centre to scan flow of funds to NGOs

Earlier, a similar exercise of the NDA government had to be shelved prematurely as several Christian organisations had objected to it. It was alleged that the NDA was furthering the saffron agenda and the changes were aimed at Christian organisations.

It is understood that Home Minister Shivraj Patil has cleared the proposed changes. The issue will be put up before the Union Cabinet soon. Senior ministry officials said the Parliament is also likely to be informed in the current session.

The ministry has argued that poor enforcement of the Act is due to the centralised enforcement pattern and proposed that five regional offices be set-up. These regional FCRA offices will directly monitor NGOs receiving funds, audit the accounts to establish if funds have been spent for the specified purpose. To strengthen the reporting system the ministry has proposed that reporting of transactions by banks are made mandatory failing which banks will be liable for prosecution.

Further, the ministry has also proposed that permission to receive foreign funds be reviewed after every five years. Under the present provisions license to receive funds cannot be reviewed once granted.

Individual organisations can, however, be black-listed if they are found to be acting against national interest. The process is, however, lengthy and only few organisations have been black-listed so far.