NGOs might move court over notification declaring them public officials

Managers, directors and board members of NGOs will have to declare their personal assets to the government by July 31

Around 200 non-government organisations (NGOs) held a meeting on Friday to discuss their strategy on the central government’s recent notification declaring them public officials and asking them to declare their assets and income details by end of this month.

According to the June 26 notification, those handling day-to-day operations of an NGO will be treated as public servants under the Lokpal and Lokayuktas Act, 2013, if the organisation receives government funding and its annual income exceeds Rs 1 crore. In case of foreign funding, the limit was kept at Rs 10 lakh a year.

Also, managers, directors and board members of NGOs will have to declare their personal assets including jewellery, cash, moveable and immovable property to the government by July 31. These professionals are likely to come under the same rules and regulations applicable for government officials under the Prevention of Corruption (PC) Act.

This notification has sent alarm bells ringing among people involved in volunteer and charitable work.

“We fully support transparency. All we are asking the government is to give us an audience and explain how these rules will be applied to people in the NGO sector. Private people are not covered under the PC Act. The government made these rules without having held any consultation with NGOs,” said Harsh Jaitli, CEO of Voluntary Action Network India and Centre for Promoting Accountability.

“We also want the government to extend this deadline of July 31 as thousands of volunteers in villages are not even aware of such notification. We will consider legal recourse if the government doesn’t accept our demands,” Jaitli added.

According to experts, NGOs receiving foreign aid could have been kept out of the Lokpal Act’s ambit as funding received by them is not public money. “If such reasoning is provided for foreign-funded NGOs, then it should be applicable for corporate subsidiaries and other private entities that receive funding from foreign sources,” said Manoj Fogla, a chartered accountant.

The civil society is planning to challenge the inclusion of NGOs receiving foreign funding in the Delhi High Court.