IAS Gyan

Daily News Analysis

Donations to PM-CARES cannot be transferred to NDRF: Govt.

28th July, 2020 Polity

Government Comment in Supreme Court:

  • PM-CARES Fund is a “public charitable trust” to which “anyone can contribute”.
  • It is a “misconception” that contributions received by a public trust like PM-CARES can be transferred to a statutory fund like the National Disaster Relief Fund.
  • There are several funds established earlier or now for carrying out various relief works.
  • Funds like NDRF (National Disaster Response Fund), formed under Section 46 of the Disaster Management Act of 2005, are provided for by central and State budgets. These statutory funds do not take private contributions.

Petitioner’s arguments:

  • PM-CARES is not subject to audit by the Comptroller and Auditor General.
  • It is not under “public scrutiny”.
  • Contributions to it are “100% tax free”.
  • Corporate contributors are lured to donate to PM-CARES because they can avail of corporate social responsibility (CSR) benefits, which is not possible in the case of donations to States’ funds.
  • The Trust is only there to circumvent the NDRF. It is a fraud on the Constitution.



Receives voluntary contributions from individuals and organisations.

No Voluntary Contribution

Body through Executive Resolution

Statutory Body

No budgetary support

Budgetary support

Accepts Foreign Donations also


Managed by Three Central Ministers

Managed by PMO

Corporate funds can avail CSR exemption

Can not avail such exemption

Undertakes development to mitigate the Pandemic effect

Support to families affected by disasters

Very Opaque in working

Transparency in terms of Expenditure and budgetary support: No Detailed breakups


Reference: https://www.thehindu.com/news/national/donations-to-pm-cares-cannot-be-transferred-to-ndrf-govt/article32204682.ece#:~:text=Funds%20cannot%20be%20moved%20from,which%20%E2%80%9Canyone%20can%20contribute%E2%80%9D.&text=%E2%80%9CThe%20Trust%20is%20only%20there,a%20fraud%20on%20the%20Constitution.