The Supreme court asked Centre to examine enacting a law to regulate government funds for NGOs and prosecute them in case of misuse, misappropriation of funds or non-filing of annual statements.
2) show-cause notice is to be issued to the NGO with a direction to take corrective action immediately in case of non-submission of utilisation certificate or where the ministry/department suspects a material irregularity, or misutilisation misappropriation or falsification. In case of continued noncompliance, the NGO or voluntary organisation will be blacklisted, said the guidelines.
3)SC has directed that action must be initiated like criminal proceedings for misappropriation and civil action for recovery of given funds.
4)the government had framed guidelines requiring NGOs and other voluntary organisations to register with Niti Aayog for accreditation to receive public funds.
The guidelines have also proposed that NGOs must furnish a bond equivalent to the grant given to them, to be encashed by the government in case the funds are misused or misappropriated.