Audit of PM CARES FUND

• Vaid's ICS, Lucknow
• 07, Jul 2021

Why in news?

Supreme Court has recently delivered its judgment 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.

What is Public Account?  

The Public Account of India was constituted by Article 266(2) of the Indian Constitution. It deals with the money received by the government, i.e. state provident funds, various pre-deposits under income tax, depreciation and reserve funds of departmental undertakings are paid into public accounts. Thus, receipts and disbursements which do not form part of the Consolidated Fund of India are included in the public accounts of India.

Section 46(1) in the Disaster Management Act, 2005.

• (a) An amount which the Central Government may, after due appropriation made by Parliament by law in this behalf provide;
• (b) Any grants that may be made by any person or institution for the purpose of disaster management.

Facts for Prelims:

Ayuraksha:

All India Institute of Ayurveda under Ministry of AYUSH and Delhi Police have jointly launched ‘AYURAKSHA’ for police personnel.

• Ayurveda medicines will be provided to nearly 80000 personnel of Delhi Police.