After ED-RBI Scrutiny, 4k NGOs Lose Registration

After scrutiny by the Reserve Bank of India (RBI) and the Enforcement Directorate (ED) the government has cancelled registration of over 4,000 non-governmental organizations (NGOs) and placed 35 others under prior permission category. Earlier, 72 NGOs were prohibited from receiving foreign contributions and accounts of 32 others were frozen. The home ministry, which monitors foreign contribution of these organizations, has referred cases of 24 NGOs to the Central Bureau of Investigation for further investigation. In response to a Parliament question on steps taken to prevent inflow of illegal money, minister of state for finance S S Palanimanickam said that after EDs investigation around 1,000 show-cause notices were issued for alleged contravention of Foreign Exchange Management Act norms relating to the transfer of Rs 2,530 crore. The EDs notices were issued based on investigation carried out for four years (between 2009-10 and 2012-13 ). Palanimanickam said the government monitors the receipt and utilization of foreign contribution received by any person, including NGOs, in the country.

Times of India, New Delhi, 16-03-2013