InvestorQ : What is the use of PM care funds and accountability of the same?
vani Patil made post

What is the use of PM care funds and accountability of the same?

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Anjali Desai answered.
2 months ago

There is no clear answer to this, but I’ll try to explain to the best of my ability. According to the official website, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) fund aims to fill the void of an emergency distress national funding program. It is posed with an objective to deal with any sort of emergency or distressing situation occurring in any geographical area located within the borders of India, aiming to provide relief to anybody affected by any such unforeseeable incidents.

PM-CARES fund is said to solely and entirely consist of voluntary contributions from any individual(s) and/or organization(s) and does not receive budgetary support to further the cause. Donations are completely exempt from Income Tax and count as Corporate Social Responsibility expenditure in all records.

Since the inception of this fund, there have been growing voices asking for a public declaration of the donations and expenses of the fund. In this regard, there was a petition was filed in the Delhi High court seeking that the PM-CARES Fund be declared a public authority, under the Right To Information (RTI) Act. The Prime Minister’s Office (PMO) Solicitor General, Tushar Metha, sought time from Delhi High Court’s Justice Navin Chawla in order to submit a reply explaining why the petition should not be entertained. The hearing on this case is scheduled for 28th August 2020.

In the background of this, Delhi-based chartered accountancy firm SARC & Associates has been hired to audit the PM CARES Fund, according to the information given by the fund’s administrators. The independent auditor has been appointed for three years. The audit will be conducted at the end of a financial year, as per details given in the set of frequently asked questions on the Fund. The appointment is particularly interesting because critics have questioned the rationale for a fund other than the Prime Minister’s National Relief Fund (PMNRF) for relief work and have also sought more transparency about the usage of resources from the Fund.