Defaulting NGOs a common crisis

The Times of India

For a change, the two states of Andhra Pradesh and Telangana will have to put their differences aside and work together to erase a dubious distinction they have together earned. This is because in the list of 9,948 Non Governmental Organizations (NGOs) across the country, which were sent notices last week by the Union home ministry for not filing details of foreign contributions in the last five years, united Andhra Pradesh topped by accounting for 1,441 defaulters.

In the notices, the MHA made it clear that such NGOs would be de-recognized unless they submit the statutory report on foreign contributions at the earliest. “They did not file their account on the foreign contributions for the years 2009, 2010, 2011, 2012 and 2013. As per the Foreign Contributions Regulatory Act, the NGOs need to file the statutory report with the MHA every year. But these NGOs have been willfully flouting the act,” said sources in the Union home ministry. In addition to financial statements, form FC-6, certified by a chartered account, has to also be filed annually listing the names of the foreign donors. This too has not been done, the sources added.

Sources said that if the erring NGOs do not come clean on their foreign contributions, the Union home ministry might enlist the help of the Reserve Bank of India (RBI) to track the inflow of foreign funds as well as the names of the contributors.

NGOs like Rural Development Society (RDS), Priyadarsini Mahila Mandali, Progressive Faith Ministries and Projects for Asia Charitable Foundation were among those from AP who had reported receiving high foreign contributions during the period before 2009.

As per the reports of NGOs who submitted the details of foreign contributions, united AP had received Rs 1,146 crore in 2012-13 and Rs 1,258 crore in 2011-12. In the list of NGOs that secured the maximum foreign contributions, Tamil Nadu topped in both the years by securing Rs 1,621 crore and Rs 1,705 crore respectively during these two years.

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