The PM CARES fund was set up on March 28 to help raise funds to tackle the coronavirus outbreak.
The Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) fund will be audited by independent professionals appointed by the trustees, according to a report by The Economic Times.
The PM-CARES fund was set up on March 28 to help raise funds to tackle the coronavirus outbreak.
Moneycontrol could not independently verify the story.
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Congress President Sonia Gandhi recently wrote to PM Modi suggesting that the funds from the PM-CARES fund should be transferred to the Prime Minister’s National Relief Fund (PMNRF) to "ensure efficiency, transparency and accountability".
Congress chief ministers have questioned why corporate donations to CM relief funds, or state relief funds, cannot be counted under corporate social responsibility (CSR), unlike contributions made to the PM-CARES fund.
The Companies Act, 2013 does not mention funds established by state governments under "eligible funds" that can receive CSR contributions, government officials told The Economic Times.
"The controversy around CM relief funds not being eligible for CSR is hence a result of incomplete knowledge of the law and facts around it," government officials told the publication.
But, donations made to state disaster management authorities can qualify as expenditure under CSR, so contributions towards COVID-19 relief can be made through this route, officials told the paper.
“The Corporate Affairs Ministry on March 23 clarified that COVID-19 activities relating to promotion of healthcare, preventive healthcare and sanitation, and disaster management shall qualify as CSR expenditure,” government officials said.
CPI(M) general secretary Sitaram Yechury has also questioned the need for the PM--CARES fund when the PMNRF is already in place. He also questioned the fund's transparency.
The PM-CARES fund has been exempted from the Foreign Contribution Regulation Act (FCRA), which means it can accept overseas contributions. Donors can download the receipts from the portal, the report added.
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