The Centre has said activist Teesta Setalvad's organisation cannot accept foreign funding.
Highlights
- Rule applies to NGOs receiving over Rs 1 crore from government
- The rule also applies to NGOs receiving over Rs 10 lakh from abroad
- This is the first time assets of non-profits will be looked into
NGOs or non-profit organisations, that receive more than one crore rupees in government funds or more than 10 lakhs as donation from abroad and their office-bearers will now be considered public servants and will have to declare details of their assets and liabilities and those of their spouses and dependent children by July 31 this year, the Centre has said.
This follows its decision to bring such organisations under the jurisdiction of the Lokpal or national ombudsman. The Lokpal law provides that every public servant must make public his assets and liabilities and that of his spouse and dependent children.
It will apply to "any person who is or has been a director, manager, secretary or any other officer of a society, association of persons or trust wholly or partly financed by the government and the annual income of which exceeds Rs 1 crore," a senior personnel ministry official said.
NGOs say they have grounds to challenge the order. Sources say the NGOs have reached out to the Prime Minister and are hopeful of a resolution.
"We respect the core idea of transparency, but this notification misses the fundamental point and ends up penalising individuals doing pro bono service, "said Amitabh Behar of the National Foundation of India.
He hoped that the deadline, now five days away, would be extended while NGOs reach out to the government and "try and make them understand our concerns". Mr Behar said they were also considering challenging the act.
He said the Lokpal law was brought by the previous Congress-led UPA government and "so this notification per se is not an act of the current regime. But there is a larger climate of NGOs' space in the country shrinking."
Last year, amid a crackdown on foreign charities, the Home Ministry put the $12.5 billion Ford Foundation on watch list. In 2015, the registrations of more than 10,000 NGOs were cancelled. Currently, 18 foreign funding agencies and donors are on the watch list.
In June, the Centre said activist Teesta Setalvad's NGO, the Sabrang Trust, which works with Gujarat riot victims, cannot accept foreign funding anymore. The home ministry had suspended its license last year, asking it to explain its foreign funding.