Wednesday, October 1, 2014

For PPP Gujarati Model,NO NGO Please! Ten Thousand NGOs to get their license cancelled! Modi invites American defence companies, Obamas to India Home Ministry Showcause Notices to Over 10,000 NGOs Palash Biswas

For PPP Gujarati Model,NO NGO Please! Ten Thousand NGOs to get their license cancelled!
Modi invites American defence companies, Obamas to India
Home Ministry Showcause Notices to Over 10,000 NGOs
Palash Biswas
Here you are!
Modi invites American defence companies to invest in India,that`s it what is defined as make in India,which task Dr.Manmohan Singh failed to accomplish and Modi finished it with surgical precision in his saffron Rockstar Avatar.

For my earlier Hindi post on hinduisation of corporate media,the Bajrangi brigade brands me anti development as well as anti national.They do brand Jansatta as yellow journalism for not any fault on its part,but it employed scriibes like us most disobedient to the system.Mind you,I do not waste space in my newspaper and independently address my readership on social media.

Eminent poet Pankaj Chaturvedi has felt the burn also as his post on Rajdeep Sardesai has drawn multimedia threatening to teach lessons to disobedient activists,writers and scribes.

Just awesome!
Ananatmurthi ji had not to migrate as MF Hussain had to do.He left this world for peace.

Festival season with triangular fascist imperialist flavour heralds total blackout of criticism of the hegemonial ruling saffron chemistry.Perhaps we may not survive the Lotus tsunami so violent with a meaningful Netanyahu Modi meeting followed by Indo US joint statement signed by mass destruction itself as Business after Agrarian India follows suit.

PMO has already invited projects to be funded by minimum PPP governance.
Now,the GOI has served notice to ten thousand NGOs why their license should not be cancelled.Personally,I am not charmed with NGO blitz.Rather I am against NGOs hijacking mass movement in India.NGOs tried to capture power during last elections and miserably failed.

But some NGOs are doing excellent job to protect green,civic and human rights,no doubt.Millions of young activists are attached with all kinds of NGOs and most of them are very very genuine activists.I stand with them always whatsoever may come!

On the other hand,quite amusing it may sound as reported in print media that  this could well be the beginning of a Sino-Japanese war on Indian soil. On a day when Chinese President Xi Jinping was shaking hands with Prime Minister Narendra Modi in Ahmedabad, a Japanese NGO was all set to deliver one of Modi's dreams- toilets.

The NGO, Dhillon Marty Foundation has chalked out a plan to construct cost effective toilets beginning from Amritsar and then spreading to rest of Punjab, Chandigarh and Haryana.

"The Foundation has chosen Amritsar since it is visited by over a lakh tourists including thousands of foreigners every day and when they go back they carry imprints of dirty India with them " said President of Foundation Sonia Dhillon while talking to TOI over phone from Tokyo on Wednesday.

Just read the Aman Sharma strory from New Delhi published in Economic Times:



MHA ASKS: Why licences should not be cancelled after they failed to file annual returns?
In a major crackdown, the Union Ministry of Home Affairs has sent show-cause notices in one go to over 10,000 non-governmental organisations, asking why their licenses should not be cancelled after they failed to file their annual returns of foreign receipts.
“The mandatory annual returns for the years 2009-2010, 2010-2011 and 2011-2012 have not been received from the associations whose names appear in the annexure. Notices are being sent to these associations by post at their known addresses,“ the Home Ministry said in a notice, listing out 10,331 NGOs.
NGOs that had filed returns should immediately furnish copies and proof of submission, the ministry said. Where returns have not been filed, the NGOs have been advised to immediately justify why their registration under the Foreign Contribution (Regulation) Act should not be cancelled.
The Home Ministry under Rajnath Singh has been serious about NGOs not filing their annual returns with the Centre. In a report earlier this year, the ministry said it was a “matter of concern“ that 22,702 of the 43,527 registered NGOs under FCRA had not filed returns detailing receipts of foreign funds and how they were spent.
Washington: Furthering Indo-US cooperation on terrorism, Prime Minister Narendra Modi and PresidentBarack Obama on Tuesday agreed to make "joint and concerted efforts" to dismantle safe havens for terror and criminal networks like LeT, JeM, D-company, al Qaeda and Haqqani network.
In their first Summit meeting spread over two hours at the White House, the two leaders also agreed that the two countries will take steps to disrupt financial and tactical support to these terror outfits. After the meeting between Modi and Obama, officials made it clear that India was not going to join "any coalition" in fight against terrorism in West Asia. Likewise, they clarified that a trilateral partnership agreed on Afghanistan, would be developmental in nature and not military cooperation.
They also said that the "joint and concerted efforts" on dismantling safe havens for terrorist groups and criminal networks do not mean that India and the US were not going to launch operations but carry out any UN-mandated task.
Modi and Obama, whose discussions covered a broad range of issues including cooperation in defence, security, energy economic and space, took a significant decision to break the impasse on implementation of civil nuclear deal.
"We are serious about resolving issues on both sides in civil nuclear energy cooperation. This is important to India for meeting energy security needs," Modi said.
An inter-agency contact group will be set up to address the issues of liability, administrative and technical issues. From the Indian side, agencies like DAE, MEA and Finance Ministry will be involved.
"We are setting up an inter-agency contact group to be able to resolve all issues that are outstanding and hindering the rapid deployment of US-origin nuclear reactors in India, that includes by liability, it includes administrative issues and it includes technical issues," Vikram Doraiswami, Joint Secretary (Americas), in the MEA, told reporters while briefing on the meeting between Modi and Obama.
Doraiswamy said while India was not going to join any coalition against terrorism, the two sides had agreed on the need to deal with "travellers of terrorism" -- radicalised people who travel for participating in terror activities in West Asia.
"This is a very major issue for us," he said.
On Afghanistan, Modi and Obama discussed the political, security and economic transition which is underway. "We continue to be very supportive of the transition process in Afghanistan," the Indian official said.
Holding that India and the US are natural global partners, the two countries extended defence cooperation for another 10 years. Modi invited US companies to participate in defence manufacturing sector in India, which has recently raised the FDI cap from 26 to 49 percent.
Expanding on the strategic partnership, Obama said India meets the standards of the Missile Technology Control Regime (MTCR) and is "now ready" for the membership of the elite Nuclear Suppliers Group (NSG), a 48-member body which controls global nuclear trade.
Obama also reaffirmed US support for India's membership of the expanded UN Security Council and backed it for "voice and vote" in international financial institutions like IMF and World Bank.
During the meeting, Modi asked Obama to take steps which would ensure easier access to Indian companies in services sector in the US markets.
Pledging to intensify cooperation in counter-terrorism and security, the two countries agreed to step up intelligence sharing.
The US will also cooperate as knowledge partner for India's planned National Defence University as well as technology partner in the Indian Navy.
The US will also participate in expansion of India's infrastructure projects.
The US will also be the lead partner in developing Allahabad, Ajmer and Vishakapatnam as 'Smart Cities'.
The two countries will also cooperate in the Mars Mission.
In the economic area, the two countries discussed FDI and portfolio investment and participation in Indian manufacturing sector, in tune with Modi's 'Make in India' campaign.
They also agreed on cooperation between their central banks on regulation of their financial institutions and cross-border banking arrangements.
The US will also participate in India's endeavour in the renewable energy sectory with one billion dollars being pledged by the EXIM bank.
The two sides also agreed to set up Water and Sanitation Alliance (WASH).Modi and Obama pledged to push the bilateral relationship to "new levels".
At a joint media appearance with Obama, Modi expressed the hope that India-US relations will make fast progress.
"Both of us are committed taking forward the civil nuclear partnership agreement. We are serious about resolving at the earliest issues relating to civil nuclear energy cooperation. This is important for India for meeting energy security needs," he said.
The Indo-US nuclear deal concluded between the previous Manmohan Singh government and the Bush Administration has been stalled because of issues relating to liabality laws.
Obama said India was emerging as a major power for peace and security in the region.
Both of them had a candid discussion about WTO issues. "India supports trade facilitation but it is my wish that a solution should take care of our food security concerns. I am sure that it is possible to do that early."
"I am looking forward to building up on relationship and make more progress," he said.
The President said the two leaders discussed various issues including trade and economic cooperation, cooperate in exploration of space and scientific developments especially to deal with challenges like Ebola. Obama said he was impressed by Modi's pro-poor policies and efforts to revitalise the Indian economy.
"Throughout this conversation, I`ve been impressed with the Prime Minister`s interest in not only addressing the needs of the poorest of the poor in India and revitalising the economy there but also its determination to make sure that India is serving as a major power that can help bring about peace and security for the entire world.”
“So I want to wish him luck in what I`d sure will be a challenging but always interesting tenure as prime minister in India,” Obama said.
“I'm very grateful for the friendship between the United States and India, and I'm looking forward to building on this meeting so that we can continue to promote progress in both countries and around the world.”
Obama said the two leaders have had an outstanding discussion around a range of issues.
During our discussions, we reaffirmed that, as two of the world's largest democracies, vibrant people-to-people contacts between India and the United States, including an incredible Indian-American population that contributes so much, that we have so much in common it is critical for us to continue to deepen and broaden the existing framework of partnership and friendship that already exists, the President said.
On Monday night, during a private dinner, Obama said he and Modi spent most of their time talking about the economy.
“We agreed that, in both countries, one of our primary goals is to improve education and job training so that our young people can compete in the global marketplace.”
“The Prime Minister shared with me his vision for lifting what is still too many Indians who are locked in poverty into a situation in which their lives can improve,” he added.
Obama said they also time talking about the international situation and security issues.
“We addressed challenges in the Middle East and violent extremism and the fight against ISIL.”
They also discussed issues of trade, and ?issues of making sure that maritime rules are observed.
And the two leaders discussed how they can continue to work together on a whole host of issues, from space exploration and scientific endeavor to dealing with humanitarian crises like Ebola in West Africa.
After their Summit talks, Modi was hosted a lunch by Vice President Joe Biden in which Secretary of State John Kerry was present.
Addressing the luncheon, Modi said India is committed to fulfilling the hopes and aspirations that the world, especially the US, has with regard to the country.


NGO Registration Methods - 1
1. Trust 2. Society, and 3. Non profit Company
In India non profit / public charitable organisations can be registered as trusts, societies, or a private limited non profit company, under section-25 companies. Non-profit organisations in India (a) exist independently of the state; (b) are self-governed by a board of trustees or ‘managing committee’/ governing council, comprising individuals who generally serve in a fiduciary capacity; (c) produce benefits for others, generally outside the membership of the organisation; and (d), are ‘non-profit-making’, in as much as they are prohibited from distributing a monetary residual to their own members.

Section 2(15) of the Income Tax Act – which is applicable uniformly throughout the Republic of India – defines ‘charitable purpose’ to include ‘relief of the poor, education, medical relief and the advancement of any other object of general public utility’. A purpose that relates exclusively to religious teaching or worship is not considered as charitable. Thus, in ascertaining whether a purpose is public or private, one has to see if the class to be benefited, or from which the beneficiaries are to be selected, constitute a substantial body of the public. A public charitable purpose has to benefit a sufficiently large section of the public as distinguished from specified individuals. Organisations which lack the public element – such as trusts for the benefit of workmen or employees of a company, however numerous – have not been held to be charitable. As long as the beneficiaries of the organisation comprise an uncertain and fluctuating body of the public answering a particular description, the fact that the beneficiaries may belong to a certain religious faith, or a sect of persons of a certain religious persuasion, would not affect the organisation’s ‘public’ character.

Whether a trust, society or section-25 company, the Income Tax Act gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organisations may claim a rebate against donations made. Foreign contributions to non-profits are governed by FC(R)A regulations and the Home Ministry.
CAF would like to clarify that this material provides only broad guidelines and it is recommended that legal and or financial experts be consulted before taking any important legal or financial decision or arriving at any conclusion.

Formation and Registration of a Non -Profit organisations in India
1) Trust
2) Society
3) Section-25 Company  
Additional Licensing/ Registration

I. Trusts
A public charitable trust is usually floated when there is property involved, especially in terms of land and building.

Legislation : Different states in India have different Trusts Acts in force, which govern the trusts in the state; in the absence of a Trusts Act in any particular state or territory the general principles of the Indian Trusts Act 1882 are applied.

Main Instrument : The main instrument of any public charitable trust is the trust deed, wherein the aims and objects and mode of management (of the trust) should be enshrined. In every trust deed, the minimum and maximum number of trustees has to be specified. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the trust property.
Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of trustees. The Board of Management comprises the trustees.

Application for Registration :
The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered.

After providing details (in the form) regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of Rs.2/- to the form and pay a very nominal registration fee which may range from Rs.3/- to Rs.25/-, depending on the value of the trust property.

The application form should be signed by the applicant before the regional officer or superintendent of the regional office of the charity commissioner or a notary. The application form should be submitted, together with a copy of the trust deed.

Two other documents which should be submitted at the time of making an application for registration are affidavit and consent letter.

II. Society
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: ‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.’

Legislation : Societies are registered under the Societies Registration Act, 1860, which is a federal act. In certain states, which have a charity commissioner, the society must not only be registered under the Societies Registration Act, but also, additionally, under the Bombay Public Trusts Act.
Main Instrument : The main instrument of any society is the memorandum of association and rules and regulations (no stamp paper required), wherein the aims and objects and mode of management (of the society) should be enshrined.

Trustees : A Society needs a minimum of seven managing committee members; there is no upper limit to the number managing committee members. The Board of Management is in the form of a governing body or council or a managing or executive committee

Application for Registration :
Registration can be done either at the state level (i.e., in the office of the Registrar of Societies) or at the district level (in the office of the District Magistrate or the local office of the Registrar of Societies).(2)

The procedure varies from state to state. However generally the application should be submitted together with: (a) memorandum of association and rules and regulations; (b) consent letters of all the members of the managing committee; (c) authority letter duly signed by all the members of the managing committee; (d) an affidavit sworn by the president or secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee stamp; and (e) a declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society.

All the aforesaid documents which are required for the application for registration should be submitted in duplicate, together with the required registration fee. Unlike the trust deed, the memorandum of association and rules and regulations need not be executed on stamp paper.

III. Section-25 Company
According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established ‘for promoting commerce, art, science, religion, charity or any other useful object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.

Legislation : Section-25 companies are registered under section-25 of the Indian Companies Act. 1956.

Main Instrument : For a section-25 company, the main instrument is a Memorandum and articles of association (no stamp paper required)

Trustees : A section-25 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee.

Application for Registration :
1.An application has to be made for availability of name to the registrar of companies, which must be made in the prescribed form no. 1A, together with a fee of Rs.500/-. It is advisable to suggest a choice of three other names by which the company will be called, in case the first name which is proposed is not found acceptable by the registrar.

2.Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board. The application should be accompanied by the following documents:
Three printed or typewritten copies of the memorandum and articles of association of the proposed company, duly signed by all the promoters with full name, address and occupation.

A declaration by an advocate or a chartered accountant that the memorandum and articles of association have been drawn up in conformity with the provisions of the Act and that all the requirements of the Act and the rules made thereunder have been duly complied with, in respect of registration or matters incidental or supplementary thereto.

Three copies of a list of the names, addresses and occupations of the promoters (and where a firm is a promoter, of each partner in the firm), as well as of the members of the proposed board of directors, together with the names of companies, associations and other institutions in which such promoters, partners and members of the proposed board of directors are directors or hold responsible positions, if any, with description of the positions so held.

A statement showing in detail the assets (with the estimated values thereof) and the liabilities of the association, as on the date of the application or within seven days of that date.
An estimate of the future annual income and expenditure of the proposed company, specifying the sources of the income and the objects of the expenditure.

A statement giving a brief description of the work, if any, already done by the association and of the work proposed to be done by it after registration, in pursuance of section-25.

A statement specifying briefly the grounds on which the application is made.

A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged insolvent, not convicted by a court for any offence and does not stand disqualified under section 203 of the Companies Act 1956, for appointment as a director.
3.The applicants must also furnish to the registrar of companies (of the state in which the registered office of the proposed company is to be, or is situate) a copy of the application and each of the other documents that had been filed before the regional director of the company law board.

4.The applicants should also, within a week from the date of making the application to the regional director of the company law board, publish a notice in the prescribed manner at least once in a newspaper in a principal language of the district in which the registered office of the proposed company is to be situated or is situated and circulating in that district, and at least once in an English newspaper circulating in that district.

5.The regional director may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the licence should or should not be granted.

6.The regional director may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the licence as may be specified by him in this behalf.

IV. Special Licensing
In addition to registration, a non-profit engaged in certain activities might also require special license/permission. Some of these include (but are not limited to):

A place of work in a restricted area (like a tribal area or a border area requires a special permit – the Inner Line Permit – usually issues either by the Ministry of Home Affairs or by the relevant local authority (i.e., district magistrate).

To open an office and employ people, the NGO should be registered under the Shop and Establishment Act.

To employ foreign staff, an Indian non-profit needs to be registered as a trust/society/company, have FCRA registration and also obtain a No Objection Certificate. The intended employee also needs a work visa.

A foreign non-profit setting up an office in India and wanting staff from abroad needs to be registered as a trust/society/company, needs permission from the Reserve Bank of India and also a No Objection Certificate from the Ministry of External Affairs.
Comparision among Trust, Society and Non profit Company
Trust
Society
Section-25 Comapny
Statute/Legislation
Relevant State Trust Act or Bombay Public Trusts Act, 1950
Societies Registration Act, 1860
Indian Companies Act, 1956
Jurisdiction
Deputy Registrar/Charity commissioner
Registrar of societies (charity commissioner in Maharashtra).
Registrar of companies
Registration
As trust
As Society
In Maharashtra, both as a society and as a trust
As a company u/s 25 of the Indian Companies Act.
Registration Document
Trust deed
Memorandum of association and rules and regulations
Memorandum and articles of association. and regulations
Stamp Duty
Trust deed to be executed on non-judicial stamp paper, vary from state to state
No stamp paper required for memorandum of association and rules and regulations.
No stamp paper required for memorandum and articles of association.
Members Required
Minimum – two trustees. No upper limit.
Minimum – seven managing committee members. No upper limit.
Minimum three trustees. No upper limit.
Board of Management
Trustees / Board of Trustees
Governing body or council/managing or executive committee
Board of directors/ Managing committee
Mode of Succession on Board of Management
Appointment or Election
Appointment or Election by members of the general body
Election by members of the general body

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