HomeNewsOpinionSC judgment does not clear confusion surrounding PM CARES

SC judgment does not clear confusion surrounding PM CARES

The problem with the PM CARES fund is that it is not transparent — the public doesn’t know the basis of allocation of funds. The Supreme Court judgment does not address this core issue

August 21, 2020 / 14:04 IST
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Representative Image
Representative Image

This week, the Supreme Court verdict dismissed a PIL that sought to transfer funds in the PM CARES fund to the National Disaster Relief Fund (NDRF). A day after the verdict, JP Nadda, National President of the Bharatiya Janata Party (BJP), called it an endorsement, saying that it should clear confusion about the fund.

So, what did the Supreme Court actually say? It found that the “PM CARES fund is a public charitable trust and is not a government fund”. Therefore, it concluded that “there is no occasion for issuing any direction to transfer the said funds to the NDRF”. This hardly any endorsement of any kind, forget giving legitimacy to the fund.

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Distortions aside, it is useful to critically analyse both the petition and the judgment. The petition by the Centre for Public Interest Litigation sought a direction to the government to prepare and implement a Disaster Management Plan under Section 11 of the Disaster Management Act, 2005, to specifically tackle COVID-19, and to lay down minimum standards of relief to persons affected by the virus, as well as the resultant lockdown. It then sought a direction to utilise the NDRF for COVID-19 relief, and to transfer the balance in the PM CARES to the NDRF.

The government’s response was to say that the Disaster Management Act, 2005, only requires the government to make a disaster management plan, not for each specific disaster. Having made a plan in November 2019, the government was not statutorily required to make a plan specific to COVID-19. Further, given that the 2019 plan had minimum standards of relief prescribed, the government was not statutorily required to make fresh standards. The court, noticing that the 2019 plan specifically provided for biological and public health emergencies (BPHE), accepted these rebuttals while dismissing the prayers.