New Delhi: With voluntary organisations receiving more than Rs 11,500 crore of foreign funds annually, the Indian Home Ministry has warned that the NGOs in the country were vulnerable to risks of money laundering and militancy financing.
In its latest annual report on receipt and utilisation of foreign contribution by voluntary associations, the Home Ministry said since the NGOs work independently outside the government, it is expected that they should be self-regulating and law abiding.
One of the objectives of the national policy on the voluntary sector is to “encourage NGOs to adopt transparent and accountable system of governance and management”.
“While it is not proper to make sweeping generalisations, it is necessary to note that the NGO sector in India is vulnerable to the risks of money laundering and terrorist financing,” the report said.
In his foreword, Union Home Secretary Anil Goswami said the general policy of the government is not to encourage soliciting of foreign contribution and the endeavour of the Ministry has been to bring in transparency and accountability in the operation of the Foreign Contribution (Regulation) Act while ensuring national security.
Interestingly, the returns have not been received from nearly 19,000 organisations for which appropriate action has been taken by the Home Ministry for non-compliance of their statutory obligations.
A total of 43,527 NGOs were registered under the Foreign Contribution (Regulation) Act upto March 31, 2012.
Amongst the purposes for which foreign contribution was received and utilised are: rural development (Rs 945.77 crore), welfare of children (Rs 929.22 crore), construction and maintenance of school/college (Rs 824.11 crore) and research (Rs 539.14 crore).—PTI