With a view to impart greater transparency and expeditiousness in the sanctioning of Grants-in-Aid to Non Governmental Organisations (NGOs), the process of submission of application and subsequent process has been made online mandatory from the financial year 2014-15.
The following corrective steps have been taken/proposed to be taken to check embezzlement of Government grants by NGOs:
i. Funds are released to the NGOs after receipt of recommendation of the State Level Grant-in-Aid Committee, Inspection Reports, Utilization Certificate and Audited Accounts.
ii. Surprise inspections of the NGOs by the officers of the Ministry.
iii. The schemes/programmes implemented through NGOs are also monitored by respective State Government / UT Administrations.
iv. The Ministry sponsors evaluation studies from time to time through independent evaluation agencies, inter alia, to check proper utilization of funds by the implementing agencies under various Schemes/Programmes.
v. In the event of proven misappropriation of fund by an NGO, the Ministry initiates action to blacklist the NGO.
This information was given by the Minister of State for Social Justice and Empowerment, Shri Vijay Sampla in a written reply to a question in Rajya Sabha here today.
Source- Press Information Bureau
Government of India
Ministry of Social Justice & Empowerment -27-November-2014