Supreme Court gives stamp of approval to PM CARES; quashes plea seeking transfer of funds to NDRF

The Supreme Court clarified in its order on the utilisation of PM CARES Fund for national disaster management, that the PM CARES Fund money cannot be directed to be deposited or transferred to the National Disaster Relief Fund.


India, Supreme Court, National Disaster Relief Fund (NDRF), PM CARES Fund, Prashant Bhushan

(File Photo)

The Supreme Court on Tuesday gave its stamp of approval to the PM CARES Fund and dismissed a plea that sought the transfer of funds from PM CARES to the National Disaster Relief Fund (NDRF). The Court also held that there was not a need for a fresh national disaster relief plan for COVID-19, observing that the minimum standards of relief as issued under the existing Disaster Management Act were enough.

The top court clarified in its order on the utilisation of PM CARES Fund for national disaster management, that the PM CARES Fund money cannot be directed to be deposited or transferred to the National Disaster Relief Fund. While disposing of the petition urging to do so, the Supreme Court also observed that there is no need for a fresh national disaster relief plan.

The Supreme Court, however, said that the central government is free to transfer the funds to NDRF as it deems fit and that individuals are at liberty to donate to the NDRF.

The Supreme Court Bench formulated the following questions to be answered:

  1. Whether the Union of India can formulate separate funds despite the NDRF being in place  
  2. Whether there was any prohibition to make contributions to PM CARES  
  3. Whether the Union of India is required to lay down minimum standards of relief as per the National Disaster Management Act  
  4. Whether all contributions/grants should be credited to NDRF from PM CARES

The Supreme Court Bench answered the questions with the following convictions:

  1. The National Disaster Plan, prepared by Centre under NDRF, is sufficient for COVID-19  
  2. The action plan under NDRF is sufficient, no fresh action plan is needed for tackling COVID19  
  3. Centre can utilise NDRF funds for COVID relief  
  4. Any contribution/grant can be credited to NDRF. It's open for anyone to contribute to NDRF as a voluntary contribution. There shall be no statutory prohibition in making any contribution by any person/institution to NDRF  
  5. Funds collected in PM CARES are for a charitable trust. No occasion to transfer PM CARES Fund to NDRF

The petition to transfer the PM CARES Fund to the National Disaster Relief Fund (NDRF) was earlier filed by the Center for Public Interest Litigation, led by Advocate Prashant Bhushan.