The Indian government has cracked down on nearly 9,000 NGOs that receive foreign funds. The home ministry has cancelled the registration of these NGOs, since they have failed to comply with rules. Home ministry letter says that 10,343 associations had not submitted annual returns since 2009 - 12. Notices were sent to them to file returns by October last year, but only 229 associations responded. The registration of the remaining 8,975 organisations has been cancelled.

NGOs and lobby groups have been on the government's radar since last year after a report by the Intelligence Bureau detailed that these NGOs had been stalling economic growth by campaigning against power projects, mining and genetically modified food.

The home ministry has placed the Ford Foundation on its watch list, saying it wanted to ensure that its funds were utilised for "bonafide welfare activities without compromising on concerns of national interest and security". Greenpeace India was also barred from receiving foreign funds. The government alleges that it has "prejudicially affected the economic interest of the state".

Foreign Contributions Regulations Act requires organisations receiving foreign funds to give details of the contributions received, their source and the purpose for which they were used, every year. The NGOs receive foreign funds for specific purposes, but they divert the funds for other purposes and embezzle the funds. More than 80% of the funds are used for running the office and for the expenses of the trustees of employees who are paid a salary which is much higher than a senior executive of a corporate office.

The step by the government is widely appreciated because most of the NGOs receiving funds used to spend the amount for purposes other than for which it is meant for. For most of the NGOs it is a lucrative business. The accounts of these NGOs depict that the trustees of these NGOs have an income better than country’s best corporate CEOs. NGOs have become a lucrative business without any investment. There is plenty of scope to receive foreign funds. Most of the NGOs are as rich as corporate. The life style of the trustees of these NGOs cannot be compared with the highly placed executives. They use the foreign funds for their own betterment and then talks and works against the development and prosperity of the country they are living in.

By Premji