A Fund Without A Care For The RTI

Context: Affidavit filed by GoI in response to PIL raises many questions about PM-CARES

About PM-CARES (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund)

• Fund to accept donations and provide relief during Covid pandemic, and other similar emergencies.
• Set up as a public charitable trust with the trust deed registered on March 27, 2020.
• It can avail donations from foreign contribution and donations and can avail 100% tax exemption.\
• PM is the ex-officio Chairman of the PM CARES Fund and Minister of Defence, Minister of Home Affairs and Minister of Finance are ex-officio Trustees of the Fund.

Issues associated with the fund

• Questionable purpose of creation: Since PMNRF in which President of India and Leader of Opposition also as trustees is already there with substantial amount of money, why new Fund is created.
• No statutory obligations: Fund was not created by law or by notification but through webpage bypassing provisions under the Disaster Management (DM) Act of 2005 and PMNRF.
• Creates federal imbalance: By centralizing the collection of donations and its utility.
• Lack of Transparency and scope for corruption: Due non-transparent way of sources and fund disbursement and also is not a public authority and hence not under RTI.
  • PM CARES is not under RTI while its operating authority i.e PMO is under RTI.
• Non-Accountability: Unconnected with any govts and also fund does not go to the Consolidated Fund of India (CFI), hence not audited by CAG.
• Constitutional Violation: Fund was neither created by the Constitution nor by any statute but it used national symbols and constitutional authority (such as PM) while appealing for donation.
  • Advertisement for the PM CARES Fund says: “PM announces new fund for people to donate towards Govt. fight against Coranavirus”.and “MY Govt or Meri SARKAR”.
• Office of profit: PM, Defence, Home and Finance Ministers are trustees but since fund is unconnected with govt, it becomes office of profit, that could disqualify them from holding constitutional posts.

Conclusion: PM CARES Fund should be declared as ‘a Public Authority’ under the RTI Act to ensure transparency and accountability.