PM Cares Fund vs NDRF: All you need to know about the SC verdict on the transfer of funds

Aug 31, 2020, 17:44 IST

The Apex Court of India has refused to direct the Centre to transfer the funds of PM CARES to NDRF citing that the funds collected under the PM Cares Fund are those of charitable trusts and "entirely different".

PM CARES Fund vs NDRF
PM CARES Fund vs NDRF

The Apex Court of India has refused to direct the Centre to transfer the funds of PM CARES to NDRF citing that the funds collected under the PM Cares Fund are those of charitable trusts and "entirely different". The court stated that the Central Government is free to transfer the amount if it feels it is appropriate to do so. 

The court further stated that there’s no need for a new plan to deal with the unprecedented pandemic. The verdict is given by a three-judge bench via video conferencing-- Justice Ashok Bhushan, Justice R Subhash Reddy and Justice MR Shah. 

The decision came after an NGO filed a PIL to direct the transfer of contributions made to the PM CARES (Prime Minister’s Citizen Assistance and Relief in Emergency Situations) Fund for the pandemic to the NDRF (National Disaster Response Fund). The PIL further mentioned that the PM CARES fund violates the provisions of the Disaster Management Act. 

Know why PM CARES Fund does not come under the purview of RTI?

Timeline of the events

1-In April 2020, SC rejected a PIL was filed by Manohar Lal Sharma, questioning the legal validity of PM CARES Fund.

2-On May 14, 2020, the Bombay HC sought a response from the Central Government in response to a petition seeking the funds received under PM CARES Fund and asking the government to publish details of funds received and spent on the official website of PM CARES Fund.

3-On May 22, 2020. a Bengaluru based lawyer, Praveen Kumar, filed a complaint against Congress President Sonia Gandhi amongst others questioning the accountability and transparency of the funds.

4-On June 3, 2020, the Bombay HC issued a notice to the Government of India in connection with a PIL to make details of the PM CARES Fund public.

5-On June 4, 2020, the Delhi HC heard a PIL seeking to bring transparency to the PM CARES Fund by validating RTI Act to it.

6-Samyak Gangwal filed a PIL challenging the order of the Prime Minister's Office refusing to disclose information about the establishment and governance of the Fund under the Right to Information Act 2005. On June 10, 2020, the Delhi HC heard the petition.

7-On June 17, 2020, the Delhi HC dismissed a plea filed by the Delhi University professor, challenging the mandatory deduction from his salary to the PM CARES Fund.

8-On August 18, 2020, the SC rejected a PIL filed by the Center for Public Interest Litigation. The PIL sought to transfer of funds from PM CARES to the NDRF. 

Why PM CARES Fund is criticised?

Several activists and leaders of the opposition have criticized the legal validity of PM CARES Fund citing that it is similar to PMNRF (Prime Minister's National Relief Fund). Also, the fund is not under the audit of the Comptroller and Auditor General of India as it receives private funds voluntarily and not doesn’t receive public funds. 

What are the differences between PM CARES Fund and PMNRF?

About PM CARES Fund

Amid the COVID-19 strain, on March 28, 2020, Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund or PM CARES Fund were set up by the Central Government. It was set up to deal with any emergency situation to provide relief to the people affected. The Prime Minister of India is the ex-officio Chairperson of the fund while the Ministers of Defence, Home and Finance are the ex-officio trustees. The audit of the funds collected will be done by a private auditor. 

About NDRF

With the enactment of the Disaster Management Act in 2005, the National Calamity Contingency Fund (NCCF) was renamed as National Disaster Response Fund (NDRF). It is constituted to meet the expenses for emergency response, relief and rehabilitation due to any threatening disaster situation or disaster. The Comptroller and Auditor General of India audit the funds of NDRF. 

Arfa Javaid
Arfa Javaid

Content Writer

Arfa Javaid is an academic content writer with 2+ years of experience in in the writing and editing industry. She is a Blogger, Youtuber and a published writer at YourQuote, Nojoto, UC News, NewsDog, and writers on competitive test preparation topics at jagranjosh.com

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