Can PM Cares Fund Be Audited?

Introduction to Covid-19 and the PMCARES Fund

COVID-19, which is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-Cov-2), has affected millions of people all over the world resulting in over 430,000 deaths. As Governments all over the world scramble to deal with the upsurge of cases, the World Health Organisation declared the COVID-19 outbreak a pandemic on 11 March 2020. Following a flurry of cases that were being reported all over India, the first nationwide lockdown of 3 weeks was imposed upon the citizens of the country. As of 14 June 2020, India is the fourth-worst hit country by the pandemic with over 3 lakh cases and 9,195 deaths being reported.

Keeping the situation in mind, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was kick-started on 28 March 2020. The Prime Minister is the Chairman of the fund.[1] Meanwhile,the Minister of Defence, Minister of Home Affairs, and Minister of Finance serve as the ex-officio trustees of the fund. The PM CARES Fund, however, came with a list of problems as people started questioningthe veracity of the same.

PM CARES Fund vs. the Prime Minister’s National Relief Fund (PMNRF)

Within mere hours of its launching, the PM CARES Fund had already received donations in huge numbers, as people from all walks of life started contributing to the national fund. Several people were, however, taken aback by the launch of the PM CARES Fund due to the pre-existing PMNRF Fund.

The latter was the brainchild of the Nehru Government which has since been used to aid the victims of riots, natural disasters, and so on. The PMNRF Fund has been recognized as a “trust” and has been allowed immunity from the Income Tax under the Income Tax Act of 1961.

In the case of Aseem Takyar v. Prime Minister National Relief Fund[2], it was contended that the PMNRF Fund came under the purview of the Right to Information Act, 2005.

Under Section 19 of the Indian Trusts Act, 1882, the citizens of the country, who are the beneficiaries of these funds, can seek information with regard to the funds.

Should PMCARES Fund be Audited?

In response to anRTI Application filed by Harsha Kandukuri, a student at Azim Premji University, Bangaluru, thePMO dismissed the notion of the fund being a “public authority” under Section 2(h) of the Right To Information Act, 2005. The applicant had sought details such as trust deed, notice, a notification concerning the inception of the Fund.

The Offices of the Comptroller and Auditor General of India(CAG) had stated that they did not possess any rights to audit the fund as it was a charitable organization comprising donations from individuals and organizations. The PMNRF Fund, which has been time and again dragged into the confusion surrounding the PM CARES Fund, is not audited by the CAG either.[3]

Following a great deal of confusion, SARC& Associates-a chartered accountancy firm set in Delhi, has been hired to do the needful. The FAQsection on the website of the PM CARES Fund notified the existence of an independent auditor and further stated that the audit will be conducted at the end of the financial year.

CAG and the PM CARESFund: Relevant Legislations

In spite of the appointment of an independent auditor, the arguments surrounding the fund and its usage have persisted. The CAG offices had earlier dismissed their role in the audit of the fund.

Dissenters, however, insist that the role of auditing the fund lies with the CAG and not independent auditors. As of June, the PMNRF Fund is valued at Rs. 3,800 crores which necessitate the doubts surrounding the establishment of the PM CARES Fund.

This fund includes deduction and deposit of the monthly salaries of the government employees and the money of the taxpayers is going into operating this fund. All these factors give the fund a semblance of a public account. Under Article 266(2), public money which has been received by or on behalf of the Indian Government, except consolidated and contingency Fund, should be attributed to the public account of India. Furthermore, Section 13(b) of the CAG Act mandates the duty of the CAG to audit these public accounts.

Senior Advocate Dushyant noted that contributions done voluntarily by the citizens don’t necessarily mean that these contributions aren’t in the form of “public money”. He further stated that these are not funds that have been raised in a private capacity by the Prime Minister. Advocate Manohar Sharma, in a PIL filed before the court, contended that the PM CARES Fund shall be revoked because it has not been authorized under Articles 266 or 267 and has not been sanctioned by the Parliament or the President.

OTHER CRITICISMS TOWARDS THE FUND

  • Several dissenters have noted that the fund uses pictorial representations about the Government and the State Emblem of India, which unless permitted by the Central Government, are in violation of the Emblems and Names Act and the State Emblem of India Act and Rules respectively. These factors have led people to believe that any private citizen could set up a similar fund and get away with it.
  • The existence of the “ex-officio” members of the Parliament as Chairman and trustees makes it appear as if the Fund is an official Central government account.
  • Detractors have noted that the inclusion of opposition leaders could have made the working of the Fund more transparent to onlookers.
  • The unused 3,800 crores in the PMNRF fund have raised several eyebrows and has led to a lot of questions being raised with for the same.
  • The fund has drawn criticism as several fraudulent funds have been set up with similar names. Even a prominent BJP leader from Maharashtra fell prey to the same.

CONCLUSION

The plight of the poor citizens because of the ongoing outbreak hasn’t gone unnoticed. The opposition has stated that the migrant exodus is a great human tragedy. The funds have failed in coming to the aid of the citizens who have been affected the worst as a result of this pandemic. The constitutionality of this fund has been questioned time and again. During this lockdown, there have been multiple reports about inadequate products being supplied in the combat against COVID-19.

To silence these critics and quell the doubts about favouritism, the Government needs to prove the legitimacy of this fund. The cases of COVID-19 in India are increasing by leaps and bounds, which are only adding to the troubles of the poor population. Therefore, the fund needs to come through and alleviate those who are in dire need of help.

 

By- 

Abantika Ghosh

 

[1]PMO encourages people to contribute to Prime Minister’s National Relief fund, PTI, Economic Times, September 3, 2014, available at https://economictimes.indiatimes.com/news/politics-and-nation/pmo-encourages-people-to-contribute-to-prime-ministers-national-relief-fund/articleshow/41615248.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst.

[2]LPA 231/2016 & C.M. 13063/2016.

[3] Horizons of Section 2(h)of RTI Act, 2005 and an insight into the RTI Act, PruthvirajsinhZala, available at https://cic.gov.in/sites/default/files/RESEARCH%20PAPER%20CIC%20pz.pdf.