PM CARES Fund: Difference between revisions

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The total amount of funds donated and the names of donors have not been publicly disclosed, and the fund is privately audited. The Government of India has initially claimed that the fund is a private fund, and denied that the PM CARES Fund is a public fund for the purposes of transparency laws such as the [[Right to Information Act, 2005|Right to Information Act 2005]], even though the Fund uses government infrastructure and [[State Emblem of India|the national emblem]] of the Government of India. The PM CARES Fund has faced criticism for the lack of transparency and accountability in relation to its establishment, functioning, and accounts.<ref>[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3833361 The Curious Case of PM CARES Fund: Corporate Social Responsibility and the Suppression of Civil Society in India]. ''International Journal of Social Science and Economic Research.'' Social Science Research Network (SSRN). Accessed 12 May 2021.</ref><ref>[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3844230 Government-Citizen Pandemic Relief Efforts: Case of India's PM CARES Fund.] ''Public Economics: National Government Expenditures & Related Policies eJournal.'' Social Science Research Network (SSRN). Accessed 12 May 2021.</ref> In December 2020, the Government of India reversed its stance and admitted that the PM CARES Fund was a public fund, but still refused to disclose information regarding it under the Right to Information Act 2005.<ref name="firstpost.com" /><ref name=":17">{{Cite web|date=2020-07-10|title=In top court, Centre defends creation of PM CARES Fund|url=https://indianexpress.com/article/india/in-top-court-centre-defends-creation-of-pm-cares-fund-6498533/|access-date=2020-07-30|website=The Indian Express|language=en}}</ref><ref name=":18" /><ref name=":25">{{Cite web|title=PM-CARES "Controlled By Government" But RTI Doesn't Apply: New Flip-Flop|url=https://www.ndtv.com/india-news/pm-cares-established-by-government-but-rti-doesnt-apply-says-document-2343550|access-date=2020-12-25|website=NDTV.com}}</ref>

However, the [[Prime Minister's Office (India)|Prime Minister's Office]] and other government authorities subsequently declined to provide information regarding the PM CARES Fund on the grounds that it was not a public authority. Subsequent disclosures of the PM CARES Trust deed indicated that the Fund was not a public body, and therefore donations to the Fund would not qualify for CSR exemptions. In order to remedy the illegality of the original exemption, the [[Ministry of Corporate Affairs]] amended the relevant schedule to the Companies Act 2013, to allow CSR donations to funds that were not set up by the Government of India. The amendment was made with retrospective effect, to cover any donations made prior to the amendment.<ref name=":19" /><ref>{{Cite web|last=P|first=Ambika|last4=Ist|date=22 August 2020|title=RTI activists question Centre's decision to put PM CARES Fund in Companies Act for CSR eligibility|url=https://timesofindia.indiatimes.com/india/rti-activists-question-centres-decision-to-put-pm-cares-fund-in-companies-act-for-csr-eligibility/articleshow/77685797.cms|access-date=2020-08-22|website=The Times of India|language=en}}</ref> Information obtained under the Right to Information Act by the ''[[Huffington post|Huffington Post]]'' has revealed that the exemptions were made at the request of a Bhaskar Kulbe, advisor to Prime Minister Narendra Modi.<ref>{{Cite web|date=2020-08-31|title=EXCLUSIVE: Modi Advisor's Letter Undermines PMO Claim That PM CARES Isn't Covered By RTI|url=https://www.huffingtonpost.in/entry/narendra-modi-pmcares-pmo-rti-transparency_in_5f4bd23fc5b697186e377fac|access-date=2020-08-31|website=HuffPost India|language=en}}</ref>

The establishment of the PM CARES Fund has been criticised on the grounds that there already exists the [[Prime Minister's National Relief Fund]] (PMNRF), which was established in 1948 to provide relief and assistance to those suffering in times of natural disasters, calamities, and riots.<ref>{{Cite news|others=Special Correspondent|date=2020-03-30|title=Congress questions setting up of PM CARES Fund to deal with coronavirus|language=en-IN|work=The Hindu|url=https://www.thehindu.com/news/national/congress-questions-setting-up-of-pm-cares-fund-to-deal-with-coronavirus/article31210904.ece|access-date=2020-07-30|issn=0971-751X}}</ref><ref>{{Cite news|last=Nair|first=Sobhana K.|date=2020-04-02|title=Why PM CARES Fund when there is PMNRF, asks CPI(M) MP|language=en-IN|work=The Hindu|url=https://www.thehindu.com/news/national/why-pm-cares-fund-when-there-is-pmnrf-asks-cpim-mp/article31237778.ece|access-date=2020-07-30|issn=0971-751X}}</ref> In addition to political opposition, the [[Chief minister (India)|Chief Ministers]] of several states questioned about the preference for PM CARES over the individual relief funds of each state.<ref name="NDTVCheckedCAG24Apr">{{Cite web|last1=Prabhu|first1=Sunil|date=24 April 2020|title=PM CARES Fund Won't Be Checked By Government's Auditor, Say Sources|url=https://www.ndtv.com/india-news/coronavirus-pm-cares-fund-wont-be-checked-by-cag-say-sources-2217714|access-date=2020-04-25|website=NDTV}}</ref> The PMNRF is directly managed by the [[Prime Minister's Office (India)|Prime Minister's Office]] and donations made to it are exempt under the Income Tax Act 1960.<ref>{{Cite web|title=Prime Minister's National Relief Fund|url=https://pmnrf.gov.in/en/about|access-date=2020-07-30|website=pmnrf.gov.in}}</ref> It has been utilized since 1948 to provide relief and assistance in several instances.<ref name=":0" /> Like the PM CARES Fund, donations to the PMNRF are not transparent and names of donors or amounts of donors are not publicly disclosed or subject to audit.<ref name=":9">{{Cite web|date=2020-04-08|title=PM CARES And PMNRF Both Opaque In Same Way, Documents Show|url=https://www.huffingtonpost.in/entry/pm-cares-and-pmnrf-both-opaque-in-same-way-documents-show_in_5e8cbd55c5b6e1d10a6ad2c9|access-date=2020-07-30|website=HuffPost India|language=en}}</ref> Activists working on transparency and accountability in PMNRF Funds suggested that rather than set up a separate, similar fund, the Government of India could restructure the PMRNF itself, bringing it under parliamentary oversight and disclosing details of funding and spending.<ref name=":9" />

RTI applications filed directly to PSUs have also demonstrated that the transfer of finances to the PM CARES Fund were taken from staff salaries.<ref name=":22">{{Cite web|date=2020-09-28|title=From RBI & govt banks to LIC, Rs 205 crore to PM Cares from salaries|url=https://indianexpress.com/article/india/from-rbi-govt-banks-to-lic-rs-205-crore-to-pm-cares-from-salaries-6618506/|access-date=2020-10-02|website=The Indian Express|language=en}}</ref> Several public sector banks, including [[State Bank of India]], [[Union Bank of India]], [[Central Bank of India]], [[Bank of Maharashtra]], and [[Small Industries Development Bank of India]], as well as public sector undertakings and regulators like [[Life Insurance Corporation|Life Insurance Corporation of India]] and [[Insurance Regulatory and Development Authority]], together contributed {{INR}}2047.5 million to the PM CARES Fund.<ref name=":22" /> While some of the PSUs had sourced these transfers from their CSR allocations, the ''[[The Indian Express|Indian Express]]'' stated that their Right to Information petitions revealed that in one case, the CSR allocation had been exceeded, and in others, the amount of allocation had not been finally decided when the transfer was made.<ref name=":20" />

In 2020, the ''Indian Express'' filed Right to Information petitions with all three branches of the Indian military - the Indian Army, Air Force, and Navy, seeking details of transfers made to the PM CARES Fund. The Indian Navy disclosed that it had transferred a sum of {{INRConvert|12.41|c|lk=|year=2020}} between April and October 2020 to the PM CARES Fund, "in respect of officers and sailors" and also a sum of {{INRConvert|4.36|c|lk=|year=2020}} "in respect of civilian personnel". The Navy declined to disclose details of contributions made to the PM CARES Fund under any other heads of accounts. The Indian Air Force indicated that a total of {{INRConvert|29.18|c|lk=|year=2020}} was transferred to the PM CARES Fund "by IAF personnel". The Indian Army did not reply to the petition, but had previously shared on social networking site Twitter, in May 2020 that "IndianArmy personnel have voluntarily contributed {{INRConvert|157|c|lk=|year=2020}} as one day salary for Apr 2020 towards Nation’s fight against COVID-19 pandemic to PMCARES fund.” In total, the military transferred {{INRConvert|203.67|c|lk=|year=2020}} to the PM CARES Fund.<ref name=":24" />

On 5 June 2020, the [[Prime Minister's Office (India)|Prime Minister's Office]] stated that the PM CARES fund did not qualify as a public authority for the purposes of the [[Right to Information Act, 2005|Right to Information Act 2005]], and accordingly refused to disclose a copy of the trust deed that established the fund, any government circulars or documents related to the fund, or the exemption certificates granted to it under the Income Tax Act 1961.<ref>{{Cite web|last=LiveLaw News|date=2020-06-30|title=PM CARES Fund Not A Public Authority Under RTI Act : Affirms Appellate Authority In PMO|url=https://www.livelaw.in/top-stories/pm-cares-funds-not-a-public-authority-under-rti-act-affirms-appellate-authority-in-pmo-159152|access-date=2020-07-30|website=LiveLaw|language=en}}</ref> This order was challenged by appeal, and the Appellate Authority under the Right to Information Act 2005, in the Prime Minister's office again refused to disclose the information.<ref name="firstpost.com" /> A challenge against these orders is currently pending in the [[Delhi High Court|High Court of Delhi]].<ref name=":14">{{Cite web|date=2020-06-10|title=Plea to declare PM CARES Fund as a 'public authority' under RTI not maintainable: PMO to Delhi HC|url=https://indianexpress.com/article/india/plea-to-declare-pm-cares-fund-as-a-public-authority-under-rti-not-maintainable-pmo-to-delhi-hc-6452582/|access-date=2020-07-30|website=The Indian Express|language=en}}</ref> On 17 August 2020, a second request for information on the PM-CARES Fund under the Right to Information Act 2005 was denied.<ref>{{Cite news|last=Jebaraj|first=Priscilla|date=2020-08-16|title=PMO denies RTI plea seeking info on PM-CARES|language=en-IN|work=The Hindu|url=https://www.thehindu.com/news/national/pmo-denies-rti-plea-seeking-info-on-pm-cares/article32369180.ece|access-date=2020-08-17|issn=0971-751X}}</ref> In October 2020, an application under the Right to Information Act filed with the National Informatics Center indicated that the PM CARES Fund had been allotted a government domain name, which can only be granted to government entities; however, they refused to disclose further information about the Fund, stating that it isn't available with them.<ref>{{Cite web|date=12 October 2020|first=Aneesha|last=Mathur|title=PM Cares website given govt internet domain name, reveals RTI; why so for a charitable trust, asks activist|url=https://www.indiatoday.in/india/story/pm-cares-domain-name-pmo-oct-2019-rti-reply-1730648-2020-10-12|access-date=2020-10-13|website=India Today|language=en}}</ref><ref>{{Cite web|last=Agarwal|first=Poonam|date=2020-10-13|title=Now PMO Stops Govt Depts from Sharing RTI Info on PM CARES Fund|url=https://www.thequint.com/news/india/pmo-stops-govt-departments-from-sharing-rti-info-on-pm-cares-fund|access-date=2020-10-13|website=TheQuint|language=en}}</ref> In January 2021, a group of 100 retired Indian civil servants including [[A. S. Dulat|A.S. Dulat]] (former head of the [[Research and Analysis Wing]]), K. Sujatha Rao (former Secretary, Family Health) and S. C. Behar, wrote to Prime Minister Modi, flagging concerns about the refusal to disclose information about the Fund under the Right to Information Act 2005.<ref>{{Cite web|date=2021-01-17|title=Ex-bureaucrats flag 'clear lack of transparency' in PM Cares Fund|url=https://indianexpress.com/article/india/ex-bureaucrats-flag-clear-lack-of-transparency-in-pm-cares-fund-7149439/|access-date=2021-01-18|website=The Indian Express|language=en}}</ref>