Khehar, also directed the Centre to come out with guidelines by April 1 for a mechanism to prevent misappropriation of public money by NGOs and voluntary organisations. Chandrachud, passed the direction after additional solicitor-general Tushar Mehta told the top court that the Centre had not taken any action against the organisations other than blacklisting them. He said under the General Finance Rules, 2005, the Centre had the power to take action against erring organisations. Between 2002-03 and 2008-09, a total of Rs 6,654 crore was disbursed to NGOs or voluntary organisations, roughly amounting to Rs 950 crore a year. The court then asked the Centre "to complete the exercise of auditing and submit a report to this court by 31-3-2017 under all circumstances.

Source: The Telegraph January 10, 2017 22:25 UTC