On the next date of hearing, we expect the Union of India to place before us guidelines/rules, which will be implemented for accredition of VO’s/NGO’s, and also contains provisions for the manner in which the VO’s/NGO’s, which are recipients of grants as afore-mentioned, would maintain their accounts, and also, how the accounts of VO’s/NGO’s will be audited. The guidelines/rules will also provide for the procedure to initiate action for recovering of the grants in case of defalcation/misappropriation, including criminal action when called for.
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It is apparent from the responses… that the respondents are not aware of the responsibility of audit, depicted in General Rules, 2005, which is meant for such like VOs (voluntary organisations) and NGOs. Keeping in mind the aforesaid misconception… we consider it just and appropriate to direct… to complete the exercise of audit contemplated under the General Rules, 2005, and submit a report to this court by March 31, 2017.
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The amount disbursed by CAPART and other similar nodal agencies, is public money. The same must be accounted for. It
seems from the counter affidavit filed (by respondents), that the only action taken for non-submission of balance-sheets/returns by the VOs/NGOs is that the concerned VO/NGO is blacklisted. In case of non-compliance, it is essential to initiate civil as well as criminal action, whereby, the concerned public fund is returned to the CAPART/Government, and criminal action is initiated for defalcation.