Monday, 15 August 2011

NGOs in Uttarakhand government to be monitored by a new Department

Written by Anil Singh

Uttarakhand Government has announced that it will monitor and keep a tab on the flow of funds to the NGOs in Uttarakhand, especially those coming from abroad.
The government hopes that this will stop money laundering by the NGOs and prevent the possibility of financing to terrorist organisations in the state. A separate department will be set for the purpose.

The Government plans to blacklist those NGOs found to be guilty of malpractice and would be punished accordingly.

Uttarakhand Government plans to run this new department in assistance with agencies like Union Home Ministry, Intelligence Bureau, Reserve Bank of India and Income Tax department.

Under the guidelines of the Foreign Exchange Regulation Act, all the NGOs are suppose to renew their registration in every five years. The detailed audit of the amount which is being taken from the foreign countries will be done as well to see whether it is being used for the right purpose or not.

To stop the misuse of the money by the NGOs, the new department will see that the administrative cost of an NGO should not be more than 50 percent and the money utilized should not be used for anti-national activities. In addition, the new laws will as well bar the transfer of money received to any other person or department.

An extensive list of NGOs in the state will also be prepared.


In recent times, it has been come to light that many people are using NGOs in Uttarakhand as money making machines. In a recent investigation done by an esteemed Hindi daily, majority of the NGOs in the state exist just on paper. Hence it’s good to see an affirmative action by the Uttarakhand Government in this regard.

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