SC rejects plea seeking transfer of funds from PM Cares to NDRF

The PM Cares Fund arrange by the central authorities shouldn’t be in violation of the Disaster Management Act (DM Act) of 2005, the Supreme Court dominated on Tuesday, whereas rejecting a plea in search of switch of all contributions made to PM Cares Fund until date to the National Disaster Response Fund (NDRF), a statutory fund created below stated act.

A 3-judge bench headed by justice Ashok Bhushan held that the 2 funds can exist individually and people and organisations are free to contribute to NDRF however funds from PM Cares needn’t be transferred to NDRF.

“PM Cares Fund is an entirely different fund established as a public charitable trust. Funds in PM Cares cannot be directed to be deposited to NDRF,” the bench, which additionally comprised justices R Subhash Reddy and MR Shah, dominated.

The petitioner NGO, Centre for Public Interest Litigation (CPIL), had claimed that PM Cares Fund was arrange in violation of the authorized mandate below the DM Act as per which any grant made by any particular person or establishment for the aim of catastrophe administration must be compulsorily credited to NDRF.

The PM Cares Fund was arrange by the Centre on March 28 as a public charitable belief with the first goal of coping with any type of emergency or misery scenario reminiscent of that posed by Covid-19 pandemic.

“Even though there is a provision for NDRF under Section 46 of the Disaster Management Act, the central government has come up with a PM Cares Fund. All the contributions being made by individuals and institutions in relation to Covid-19 crisis are being credited into the PM Cares Fund and not to the NDRF, in clear violation of Section 46 of the DM Act,” the petitioner submitted.

In its affidavit earlier than the highest courtroom in July 8, the Centre had rebutted this argument by stating that PM Cares is a fund established to hold out aid work and several other such funds have been established on related strains prior to now.

“Mere existence of a statutory fund (NDRF) would not prohibit creation of a different fund like PM Cares Fund which provides for voluntary donations,” the affidavit stated.

During the listening to earlier than the apex courtroom, the Centre, by means of solicitor normal Tushar Mehta, had defended the PM Cares fund saying that it was not meant to bypass the NDRF as alleged by the petitioners.

“Whatever amount that has to go to NDRF under the law will go (to NDRF). PM Cares is a public charitable trust. If private individuals want to donate, they can do so. There are several public charitable trusts getting donations,” Mehta argued.

The petitioner by means of their counsel, senior advocate Dushyant Dave, had identified that PM Cares Fund was not being audited by the Comptroller and Auditor General (CAG) however by personal auditors.

“This government believes in transparency. Why should private auditors audit it (PM Cares)? NDRF, under DM Act, is audited by CAG,” Dave stated.

The bench had reserved its judgment within the case on July 27.