Government-run listed firms have contributed at least Rs 2,913.6 crore between 2019-20 and 2021-22 to the controversial Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund.

About PM CARES Fund

• The PM CARES Fund was created on 28 March 2020 following the COVID-19 pandemic in India.
• The fund will be used for combat, containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
• The PM is the chairman of the trust. Members will include the defence, home and finance ministers.
• The fund will also enable micro-donations. The minimum donation accepted is ₹10.

Issues over PM-CARES Fund

• No defined purpose: It is deliberately ignored while a new, controversial, unanswerable, and ‘non-accountable vehicle is created; its character is not spelt out till today.
• Non-accountable: The government seems to consider statutory provisions for enquiry and information seeking to be embarrassing obstacles.
• Centralization of donations: It centralises the collection of donations and its utility, which is not only against the federal character but also practically inconvenient. The issue is seeming, the trusteeship of the fund.

Questions and gaps

• Law/statute: The PM CARES Fund was neither created by the Constitution of India nor by any statute.
• Authority: If that is the case, under what authority does it use the designation of the Prime Minister, designated symbols of the nation, the tricolour and the official (gov.in) website of the PMO, and grant tax concessions through an ordinance.
• Collection and dispensation: The amount received by the Fund does not go to the Consolidated Fund of India. If it goes to the CFI, it could have been audited by the CAG.
• Uncontrolled: The This Trust is neither intended to be or is in fact owned, controlled or substantially financed by any instrumentality of the any govt even being chaired by the PM.

Issue over tax benefits

• Income tax: An ordinance was promulgated to amend Income Tax Act, 1961 and declare that the donations to the PM CARES Fund “would qualify for 80G benefits for 100% exemption”.
• CSR Funds: It will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
• Foreign donations: It has also got exemption under the FCRA [Foreign Contribution Regulation Act] and a separate account for receiving foreign donations has been opened.

What can be inferred from all these?

• The Centre now considers it as another obstacle and has created a new trust with the Prime Minister and his Ministers only.
• The manner in which the PM CARES Fund was set up — with its acronym created to publicise the point that the PM cares for people — shows a bypassing of the statutory obligations of a public authority.

Query and response: Again ironical

• After initial denials, the Government has conceded it to be a public charitable trust, but still maintains that it is not a ‘public authority’.
• The point is that the PMO operates the Fund, but says it cannot supply any information about the PM CARES Fund because it is not a public authority.

Severe interpretations: Is it an Office of Profit?

• If the PM CARES Fund is unconnected with the Government, then the Fund could become an office of profit.
• And that could disqualify him and the three Ministers from holding those constitutional offices.

Conclusion

• In order to uphold transparency, the PM CARES Fund should be declared as a Public Authority under the RTI Act, and all RTI queries answered truthfully.
• The fund should be designated as a “public authority” under Section 2(h) of the RTI Act.

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