Supreme Court refuses to direct transfer of contributions made to PM CARES fund to disaster response fund

The Supreme Court of India on August 18, 2020, refused to direct the transfer of contributions made to PM CARES fund to National Disaster Response Fund (NDRF). The decision came in response to the petition by NGO seeking the transfer of the fund.

The Bench of Justices R Subshash Reddy, Ashok Bhushan, and MR Shah in their decision also mentioned that the contributions made to PM CARES Fund were funds of a charitable trust, however, there was no statutory prohibition on contributions made to NDRF by individuals or any organizations.

NDRF is a statutory fund that has been created under Section 46 of the Disaster Management Act, 2005. While disposing of the petition, the Supreme Court also mentioned that there is no need for a fresh national disaster relief plan.

Refusal of contributions made to PM CARES to NDRF:

While announcing their decision of refusing the transfer of contributions made PM CARES Fund to NDRF, the court highlighted that individuals are free to contribute to NDRF. However, PM CARES is a separate fund that has been established as a public charitable trust and no directions can be issued to transfer the funds from there to NDRF.

On the petitioner’s request of setting up a National Plan for COVID-19, the Apex court clarified that the plan prepared by the central government is sufficient to cater to the pandemic.

During the hearing, the centre through Solicitor general Tushar Mehta had defended the PM CARES Fund mentioning that it was not intended to circumvent the NDRF.

About PM CARES Fund:

The central government had set up PM CARES Fund on March 28, 2020, as a public charitable trust. The fund had been set up with a primary objective of dealing with any kind of emergency or situation such as posed by COVID-19.

The government had rebutted this argument mentioning in its affidavit before the Supreme Court on July 8, 2020, that the PM CARES is a fund that is established to carry out the relief work and there are several other funds, that are established on similar lines.

Background:

The decision of the refusal to direct the transfer of the fund came because of the claim made by the NGO, Centre For Public Interest Litigation (CPIL) mentioning that the PM CARES Fund has been set up in violation of the legal mandate under the Disaster Management Act according to which any grant made by any institution or person for the purpose of disaster management must be compulsorily credited to NDRF.