PATNA, Aug. 28 -- Nearly 90% of the 44,000 charitable societies registered in Bihar risk deregistration after September, as only a fraction of them have complied with the state government's directive to file their annual statements and balance sheets for the past five years, said officials. According to the prohibition, excise and registration department, only about 5,000 charitable societies - around 11% of the total - have so far submitted the requisite data, despite the government extending the deadline until September this year. Initially, all registered societies were directed in February to submit their records by March 31, but the time frame was revised after requests from chartered accountants who argued that annual balance sheets are generally prepared around September for the previous financial year. Under the Societies Registration Act, 1860, every society is required to file its annual statement and balance sheet with the department each year. They also need to submit 'Form H' (employee details) and FCRA declaration (on receipt of foreign funding, if any). However, compliance has remained dismal. Officials said the move was part of the Bihar government's crackdown on fake or defunct societies and was also intended to curb the practice of transferring ownership of defunct entities to individuals by incorporating them in the society. Such societies are often misused to meet eligibility requirements for different government and other benefits, which mandate that participating entities must have some experience of running a society. Registration also grants societies a distinct legal identity, enabling them to enter into contracts, own property, and operate bank accounts, besides availing of certain benefits. After the verification of documents, the names of compliant societies will be uploaded on the department's website. Currently, the department lacks a computerised database of registered societies, relying instead on manual searches, which is time consuming. The new initiative is aimed at digitising records and making the submission of annual records paperless to ensure transparency and reduce harassment of the public. "The system of online registration of charitable societies and digitisation of records is a citizen-centric approach, as it will help the genuine ones and restrict the wrongdoers," said Rajnish Kumar Singh, Bihar's commissioner excise and inspector general (IG) registration. "People will not be required to come to our office either for registration or for submission of documents required annually. They will now be able to upload all documents on our portal, without having to make several rounds of our office. It will also reduce the role of the middle man and bring in transparency in our system," he added. "In addition, it will help us have a proper computerised database in searchable format that can be retrieved at the click of a mouse. It will also help us track and act against defaulters who do not file their annual reports and balance sheets regularly," said Singh. Officials suspect that several defunct societies registered in Bihar are now operating out of Jharkhand....