The Supreme Court Bench of Chief Justice of India J.S. Khehar and Justices N.V. Ramana and D.Y. Chandrachud has directed the government to audit nearly 30 lakh NGOs which received public funds but consistently failed to explain how they spent the money.
Supreme Court bench gave the decision on a writ petition filed by advocate Manohar Lal Sharma.
It ordered that any NGO found to have cooked its books or indulged in misappropriation should be subject to immediate criminal prosecution. Besides, the government should initiate civil recovery proceedings against such rogue organisations.
The Supreme Court demanded that the government file a compliance report by March 31, 2017.