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RAJYA SABHA ACCOUNTS OF GRANT- IN-AID RECEIVED BY NGOs

New Delhi ~ July 23, 2001

The Ministry of Social Justice & Empowerment obtains from the NGOs their audited accounts (Balance Sheet Income & Expenditure receipt & Payment) and utilisation certificates duly certified by a Chartered Accountant every year in respect of the grant released during the previous year. The unspent balance if any is adjusted towards the grant-in-aid for the subsequent years. If an organisation is found as a result of inspection or information from other sources to be misutilising the grant-in-aid assistance released to it or the quality of services delivered by the organisation is not commensurate with funds released further release or gant-in-aid to the NGO is suspended. Show cause notice is issued to the management and if the explanation is found to be unsatisfactory then action is taken to blacklist the organisation and State Government/District Collector concerned is asked to seize the assets created out of the Government assistance dispose of the same deposit the monies with 6% penal interest and recover the balance amount as arrears of land revenue.

This information was given by the Minister of State for Social Justice & Empowerment Smt. Maneka Gandhi in a written reply in the Rajya Sabha today.



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