PM-CARES entirely different from NDRF: SC

PM-CARES entirely different from NDRF: SC

Part of: GS-Prelims and GS-II – Judiciary

In News:

• The Supreme Court has held recently that funds received into the PM-CARES Fund need not be credited to the National Disaster Response Fund (NDRF) for the fight against the COVID-19 pandemic.

Key takeaways 

• SC has also held that individuals could make voluntary contributions to NDRF under Section 46(1)(b) of the Disaster Management Act of 2005.
• There would be no statutory prohibition against them.
• Government’s stand: 
  • It has maintained that PM-CARES is a public charitable trust to which anyone can contribute.
  • It is not subject to audit by the CAG. 
  • It is not under public scrutiny. 
  • Contributions to it are 100% tax free.

Important value additions 

Funds such as the NDRF, formed under Section 46 of the Disaster Management Act of 2005, are provided for by Central and State Budgets.