Only 11% of charitable societies submit records ahead of Bihar deregistration drive

Just 5,000 charitable societies have complied with state government’s directive to submit their annual statements and balance sheets for the past five years

Patna: Only around 11% of Bihar’s 44,000 registered charitable societies have complied with the state government’s directive to submit their annual statements and balance sheets for the past five years, with just 5,000 meeting the deadline ahead of a looming risk of deregistration starting in October, officials said.

Just 5,000 have met the deadline ahead of a looming risk of deregistration starting in September, officials said. (Representative photo)

Initially, all registered societies were directed in February to submit their records by March 31, but the time frame was revised after requests from chartered accountants who argued that annual balance sheets are generally prepared around September for the previous financial year.

Under the Societies Registration Act, 1860, every charitable society is required to file its annual statement and balance sheet with the department each year. They also need to submit ‘Form H’ (employee details) and a Foreign Contribution Regulation Act (FCRA) declaration (on receipt of foreign funding, if any). However, compliance has remained dismal.

Officials said the move, part of the Bihar government’s crackdown on fake or defunct societies, was also intended to curb the practice of transferring ownership of defunct entities to individuals by incorporating them in the society.

“Such societies are often misused to meet eligibility requirements for different government and other benefits, which mandate that participating entities must have some experience of running a society,” an official said.

Registration grants the societies a distinct legal identity, enabling them to enter into contracts, own property, and operate bank accounts, besides availing of certain benefits. After the verification of documents, the names of compliant societies will be uploaded on the department’s website.

Currently, the department lacks a computerised database of registered societies, relying instead on manual searches. The new initiative is aimed at digitising records and making the submission of annual records paperless to ensure transparency and reduce harassment of the public.

“The system of online registration of charitable societies and digitisation of records is a citizen-centric approach, as it will help the genuine ones and restrict the wrongdoers,” Bihar’s commissioner excise and inspector general (registration) Rajnish Kumar Singh said.

Singh said that people will now be able to upload all documents on the portal, without having to make several rounds of the office. “This will also reduce the role of the middleman and bring in transparency in our system,” he added.

“Additionally, it will help us have a proper computerised database in searchable format that can be retrieved at the click of a mouse. It will also help us track and act against defaulters who do not file their annual reports and balance sheets regularly,” Singh said.

Officials suspect that several defunct societies registered in Bihar are now operating out of Jharkhand. This is the first major attempt to verify records of registered societies in the state since the bifurcation of Bihar and Jharkhand in 2000.