SC rules PM-CARES funds can't be directed to transferred to NDRF; dismisses plea

The Supreme Court on Tuesday delivered its verdict in the petition seeking transfer of PM CARES Funds to National Disaster Relief Fund (NDRF) dismissing the plea, upholding that the money from the PM Cares Fund cannot be directed to be deposited or transferred to the NDRF. "The prayer to transfer money from PM CARES Fund to NDRF is refused. Subject to the clarifications, the writ petition is dismissed," said the apex court.

The bench headed by Justices Ashok Bhushan, R Subhash Reddy and M R Shah pronounced the judgment on the plea which sought a direction that all the contributions made by individuals and institutions for the COVID-19 pandemic should be credited to the NDRF, rather than to the PM CARES Fund.

The petitioner NGO 'Centre for Public Interest Litigation' (CPIL) stated that they weren't doubting the bonafide of anyone but the creation of the PM CARES Fund itself which was allegedly "in contravention of provisions of the Disaster Management Act." The plea also raised questions on the audit of the PM CARES Fund which the Centre announced would be done by private auditors.

The main argument presented by Solicitor General Tushar Mehta, appearing for the Centre, was that the PM CARES Fund was a "voluntary fund" while funds to the NDRF and SDRF were made available through budgetary allocations and parliamentary approvals. The Supreme Court had on July 27, reserved its order on the petition. 

Read: SC Reserves Order On Plea For Transferring Funds Collected In PM CARES To NDRF

Read: BJP President Lambasts Rahul Gandhi For Raising Transparency Concerns About PM CARES Fund

What is the PM CARES fund? 

Called the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund, this charitable trust was set up by the Centre on March 28. While PM Modi is the Chairman of this trust, the Defence Minister, Home Minister and Finance Minister are the other members. All citizens including individuals, corporates, and organizations can contribute to this fund to augment the relief efforts in the wake of the novel coronavirus crisis.

The donation to PM CARES fund is exempted from Income Tax under Section 80(G). Additionally, PM Modi specified that the fund would not only cater to similar situations in the future but would also help strengthen disaster management capacity. One can donate via bank transfer, UPI, Debit and Credit Cards, and Internet banking. 

Meanwhile, the opposition mainly the Congress party has been relentlessly attacking the PM CARES fund demanding that it should be merged with the PM National Relief Fund. Last week, Rahul Gandhi lashed out at the Centre after the PMO turned down an RTI request concerning the PM CARES fund. He accused PM Modi of bolstering a culture against 'moral integrity.' 

Read: FIR Lodged Against Congress Chief Sonia Gandhi Over Party's Attacks Against PM CARES Fund

Read: Rahul Gandhi Flays Centre After PMO Refuses To Give Information About PM CARES On RTI Plea