Before the intelligence bureau (IB) came out with its report on the funding of NGOs, the Central Bureau of Investigation (CBI) had questioned the accountability deficit of such civil societies.
In a lengthy affidavit submitted before Supreme Court, CBI has said that several NGOs do not submit details of receipt of grants and their spending to income tax authorities.
Taking note of the revelation, a bench headed by justice HL Dattu has ordered the agency to furnish individual details of each non-profit organisation.
CBI now has to tell the court the source of funds received by the NGOs, how they are utiltised, and whether they have filed yearly income-tax returns.
The agency was drawn into the issue after the SC took note of a PIL filed by advocate ML Sharma alleging misuse of funds by Anna Hazare’s NGO Hind Swaraj Trust (HST). SC sought funding of all NGOs across the country.
It will hear the matter in July.
The CBI filed its affidavit after getting the information about operation of NGOs and status of audit of their funds from states and union territories. Some states — Andhra Pradesh, Bihar, Delhi, Haryana, Karnataka, Rajasthan, West Bengal, Odisha, Tamil Nadu, Chhattisgarh and Himachal Pradesh — provided no data about the number of NGOs operating there.
According to RTI query by Asian Centre for Human Rights, the Union and state governments between 2002-09 released Rs 6,654 crore to various NGOs.
In its report, IB has said some NGOs pose a threat to economic security and industrial development. It has raised serious questions over the sources of the funding of such organisations.