The Supreme Court on Tuesday dismissed a plea filed by Prashant Bhushan’s Centre for Public Interest Litigation, that sought the transfer of funds from the PM-CARES scheme for COVID-19 relief to the National Disaster Response Fund (NDRF). This verdict ruled by the Bench of Justices Ashok Bhushan, R Subhash Reddy, and MR Shah said that the contributions in the case of PM-CARES fund were by means of voluntary contributions and that this does not stop any donations that are to be made in the name of the NDRF. The Bench noted that these were two different schemes, and the former, in particular, was charitable, and so, there was no need for them to be transferred. The SC also said that the Centre is free to transfer these funds whenever necessary.
The affidavit filed by the Ministry of Home Affairs had said: “It is submitted there exists a fund stipulated under the section of the DMA (Disaster Management Act) which is called NDR Fund. However, the mere existence of a statutory fund would not prohibit the creation of a different fund like PM CARES Fund which provides for voluntary donations.”
Senior advocate Kapil Sibal, who had appeared in a matter related to the National Disaster Management Plan, pointed out that as the PM-CARES provides for CSR benefits, many corporates would not have the incentive to donate to NDRF. He also argued for PM-CARES fund to atleast be audited by the Central Auditor General (CAG) which now being done by a private party. This was defended by Tushar Mehta, the Solicitor General from the Centre, who said that there was no knowledge about a forthcoming biological disaster at the time of formation of the NDRF, thereby making Sibal’s argument ineffective. He also called Mr. Sibal’s arguments factually wrong.
This verdict was given to the hearing following a PIL filed on June 17, seeking the drawing up of a National plan under the NDRF. It also sought to divert funds from the PM-CARES fund to the NDRF, under the argument that the COVID-19 pandemic was a national disaster, questioning the existence of a separate fund dedicated to the pandemic.