PM CARES vs NDRF. Why did SC defend PM CARES?

PM CARES vs NDRF. Why did SC defend PM CARES?

The SC rejected orders to transfer funds from PM CARES to NDRF. The SC also declared that PMCARES and NDRF are, “two entirely different funds with different objectives and purposes”.

The Supreme Court on Tuesday 18th August had disdained an order to transfer funds from the PM CARES to the National Disaster Response Fund (NDRF). The SC declared that, “they are two entirely different funds with different objectives and purpose.” And that “there is no occasion” for such a direction.

“The PM Cares Fund is registered as a public charitable trust. It was entailed due to the alarming escalation of the pandemic.” The Supreme Court announced on Tuesday. They ruled that it is not open for petitioners to question the government on wisdom to create PM Cares Fund.
Any individual or institution can contribute to the PM cares, since it voluntary. It does not get any financial support. No government money is added to the PM Cares Fund.

The bench announced. “Outbreak of COVID-19 in India as well as other countries required immediate enhancement in health infrastructure and funds to contain COVID-19. At this need of the hour, no exception can be taken to the constitution of public charitable trust. Namely, PM CARES Fund, to have the necessary financial resources to meet the emergent situation.”

The difference between PM CARES and NDRF

However, senior advocate Dushyant Dave argues that there was a change in guidelines. “The earlier guidelines for administration of NDRF, which came into force from 2010-11, have been modified by new guidelines. With effect from 2015-16. “It is not possible now for any person or institution to make a contribution to the NDRF”. He said, “Paragraph 5.5 of earlier guidelines has been deleted to benefit the PM CARES Fund. So that all contributions by any person or institution solely goes to the PM CARES Fund.

However, the SC declined his statement. It said “paragraph 5.5 of earlier guidelines which contemplated contributions by any person or institution for the purpose of disaster management to the NDRF. Are very much still there in the new guidelines.” And that guideline 5.2 “provides that any grants that may be made by any person or institution for the purpose of disaster management shall be credited into the NDRF”. (Source: IndianExpress)

As a result, The nature of NDRF and PM CARES Fund are juxtaposed. The NDRF is a statutory fund created under the Disaster Management Act (DM Act). While the PM CARES fund is a public charitable one.

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