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On March 28, 2020, the ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) was established. It was established in response to the critical need for a dedicated national fund to deal with any type of disaster or distress scenario, such as the COVID-19 pandemic, and to provide aid to those afflicted.
What is the PM-CARES Fund?
The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund is an acronym for the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.
In the aftermath of the coronavirus outbreak, Prime Minister Narendra Modi launched this initiative.
It is a national fund geared to coping with any type of emergency or crisis situation.
It is a charitable trust that is open to the public.
What is the PM CARES Fund’s structure?
The Prime Minister serves as the ex-officio Chairman of the PM CARES Fund, while the Ministers of Defence, Home Affairs, and Finance of the Government of India serve as ex-officio Trustees.
The Prime Minister, as Chairperson of the Board of Trustees, has the authority to appoint three trustees from the fields of health, science, social work, research, law, public administration, and philanthropy to the Board of Trustees.
Any person selected as a Trustee must serve on a pro gratis basis.
What are the PM CARES Fund’s objectives?
Its mission is to provide relief or assistance (of any kind) in the event of a public health emergency, calamity, or distress, whether man-made or natural, including the construction or upgrade of healthcare or pharmaceutical facilities and other necessary infrastructure, as well as funding relevant research.
To give financial support, grants of transfers of money, or other actions to the affected population as determined by the Board of Trustees.
To engage in any other activity that is not incompatible with the Objects listed above.
What are the salient features of the Fund?
The PM CARES Fund is a charitable trust that is open to the public. As stated in section 3 of the Income Tax Act, a trust is the transfer of property from one person (the settlor) to another (the Trustee) who maintains the property for the beneficiary.
The fund will be entirely made up of voluntary contributions. It will not receive any funding from the government.
The CAG will not conduct an audit of the PM CARES. It will be audited by the Trustees’ selected independent auditors.
What is a trust?
The transfer of property from one person (the settlor) to another (the trustee) who controls that property for the benefit of someone else is defined as a trust under section 3 of the Indian Trust Act, 1882. (the beneficiary).
India’s trusts
In India, there are two sorts of trusts: private and public trusts.
The Indian Trusts Act of 1882 governs private trusts.
The Charitable and Religious Trust Act, 1920, The Religious Endowments Act, 1863, The Charitable Endowments Act, 1890, and The Bombay Public Trust Act, 1950 control public trusts, which include charitable and religious trusts.
Relief to the needy in the form of education, medical help, or any other object of public usefulness is described as a ‘charitable purpose’ under Section 2(15) of the Income Tax Act.
Constitution of the Trust
The PM CARES Fund is chaired by the Prime Minister, who is an ex-officio member.
Ex-officio Trustees of the Fund include the Ministers of Defence, Home Affairs, and Finance.
The Prime Minister has the authority to appoint three trustees to the Board of Trustees from the fields of research, health, science, social work, law, government administration, and philanthropy.
Issues with PM-CARES Fund
When PMNRF already exists, several opposition leaders and other important persons have questioned the need for a new fund.
Because the trust deed for the PM-CARES fund has not been made public, some have questioned its secrecy. It’s unclear whether all of the trust’s members have voting rights.
The trustees of PM-CARES, according to critics, have a fiduciary duty to the trust and its beneficiaries. The abbreviation also communicates a political message, leading to accusations that the fund’s nature is incompatible with that of a public charity trust.
The government’s decision to accept foreign funds for PM CARES was also criticised, as it has previously refused foreign money to cope with internal crises.
Some critics also dispute whether proper procedures were followed in establishing the trust, receiving tax exemptions under the Internal Revenue Code, and accepting foreign contributions under the Foreign Contribution Control Act, among other things.
Critics also point to the fund’s lack of transparency, pointing out that the names of contributors and beneficiaries are not publicised, and audits are conducted by personnel nominated by the board of trustees.
Conclusion
People from all areas of life have generously given to the PM-CARES fund, which accepts micro-donations as low as Rs.10, from all walks of life.It is critical to uphold residents’ trust by holding the fund’s administration responsible through timely disclosures and periodic auditing.
