No Audit of PM-CARES Fund: SC:

Topics Covered: Separation of powers between various organs dispute redressal mechanisms and institutions.

No Audit of PM-CARES Fund: SC:


Context:

Supreme Court has delivered its judgement on PM CARES funds.

What’s the issue?

The petition was filed by an NGO named Centre for Public Interest Litigation (CPIL) had sought a direction to the Centre to transfer the funds of PM Cares Fund to the NDRF.

Highlights of the judgment:

  1. The Court has “refused” to order transfer of funds from the PM CARES Fund to the National Disaster Response Fund (NDRF). They “are two entirely different funds with different object and purpose”.
  2. PM CARES Fund, being a public charitable trust, “there is no occasion for audit by the Comptroller & Auditor General of India”.
  3. The Court also rejected the request for a new National Plan under the National Disaster Management Act, 2005, to deal with Covid-19 situation.
  4. The court held that there is “no statutory prohibition on individuals to make voluntary contributions to NDRF” under Section 46(1)(b) of the DM Act.
  5. The court also declined to intervene with the “minimum standards of relief” and the necessary guidelines issued by the government under Section 12 of the DM Act.

About PM CARES Fund:

Set up on March 28, the PM CARES Fund is a charitable trust registered under the Registration Act, 1908.

The trust does not receive any Budgetary support or any Government money.

It was constituted with an objective to extend assistance in the wake of public health emergency that is pandemic COVID-19”.

Who administers the fund?

Prime Minister is the ex-officio Chairman of the PM CARES Fund and Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund.

InstaLinks:

Prelims Link:

  1. Articles 266 vs 267.
  2. What is a public account?
  3. Who administers PM CARES fund?
  4. Which organisations are exempted from the ambit of RTI act?
  5. What is Consolidated fund of India?
  6. What is a charitable trust?
  7. About NDRF.

Mains Link:

Discuss why PM CARES fund should be brought within the ambit of RTI act?

Sources: the Hindu.