In Brief
This writ petition concerns the disbursement and accountability of vast public funds—approximately Rs. 950 crores annually—granted by the Central and State Governments to non-governmental and voluntary organizations. The Supreme Court directed that guidelines be framed for accrediting NGOs, regulating financial accounting, and conducting audits in compliance with the General Financial Rules, 2005. The Court observed that existing disbursing agencies lack adequate infrastructure for meaningful oversight. The judgment suggests the Government consider providing statutory status to the regulatory framework, which would enable enforceable civil and criminal consequences for fund misappropriation, as current guidelines alone may prove insufficient."
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