Home ministry says will penalise erring NGOs

The Union home ministry has decided to penalise those NGOs which do not furnish annual income and expenditure statement for two consecutive years. The penalty could be 10 per cent of the total foreign contributions received by them or Rs 10 lakh, whichever is less.

Similarly, for non-furnishing of annual return after one year up to two years post December 31 of every year, a fine equivalent to 5 per cent of the total foreign funds received in a year or Rs 5 lakh would be imposed.

The home ministry estimates reveal that less than 10 per cent of nearly 30 lakh NGOs registered across the country file their annual income and expenditure statements or annual returns.

The government has cancelled registration of nearly 15,000 NGOs in last two years that were registered under the Foreign Contribution Regu-lation Act for not furnishing annual returns. It has also been decided that penalty of 4 per cent of the total foreign contribution received during the financial year or Rs 2 lakh will be imposed for failure to furnish returns after six months up to one year post December 31 every year.

“There have been many erring NGOs that flout the rules often. No genuine NGO will be harassed,” a home ministry official said.