The PM CARES Fund was set up by the central government on March 28 as a public charitable trust with the primary objective of dealing with any kind of emergency or distress situation such as that posed by Covid-19 pandemic.
The Supreme Court on Tuesday rejected a petition by an NGO seeking transfer of contributions in PM CARES Fund to National Disaster Response Fund (NDRF).Teh NDRF is a statutory fund created under Section 46 of the Disaster Management Act, 2005.
The court held that individual and organisations are free to contribute to NDRF and there is no prohibition on the same. However, PM CARES is a separate fund established as a public charitable trust and no direction can be issued to transfer funds from that to NDRF, a three-judge bench headed by Justice Ashok Bhushan ruled.
The central government had rebutted this argument stating in its affidavit before the top court on July 8 that the PM CARES is a fund established to carry out relief work and there are several such funds established on similar lines in the past.