Income Tax cautions NGOs over fund misuse, flags laundering, terror funding risks
THE JHARKHAND STORY NETWORK Khunti, Sept 25: The Income Tax Department has cautioned NGOs against the growing misuse of charitable funds,…
THE JHARKHAND STORY NETWORK
Khunti, Sept 25: The Income Tax Department has cautioned NGOs against the growing misuse of charitable funds, warning that their accounts are being increasingly exploited for money laundering, terror financing, and other unlawful activities.
The warning came during an outreach programme at Rajasthan Bhawan, Khunti, led by Income Tax Commissioner (Exemption) Shiv Swaroop Singh and guided by Additional IT Commissioner Nesha Oraon, who recently took charge and has moved quickly to activate the exemption wing for stricter monitoring.
IT officer Rakesh Dwivedi explained that although most NGOs and accountants are not directly complicit, their negligence or lack of vigilance often allows criminals to exploit loopholes.
Nesha Oraon said that large, unexplained donations and high-value financial transactions are frequently routed through NGO accounts, later diverted to human trafficking, drug trade, and terror financing.
“Such misuse not only threatens national security but also undermines the credibility of the NGO sector,” she cautioned, urging organisations to thoroughly verify the authenticity of all funding sources before accepting them.
Across India, the misuse of NGO funds has drawn growing scrutiny, with several cases under probe for channelling foreign and domestic donations into illegal activities. Regulators say that stricter vigilance and compliance are critical to protect genuine charitable work from being tainted.
The programme in Khunti saw participation from nearly 80 representatives of local trusts and institutions. Raj Kumar, FCA, delivered a detailed presentation on corporate social responsibility and money laundering. Other officials, including Kuldeep Tigga and Rajiv Ranjan Bharti, also attended. The session concluded with a vote of thanks from IT inspector Ram Ayodhya Kumar.
