The office of the Prime Minister (PMO) recently clarified that the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) does not fall under the definition of a public authority as stipulated by the Right to Information Act (RTI), 2005. This explanation was provided in response to an RTI application seeking details about the fund’s trust deed and associated official orders, notifications, and circulars regarding its creation and operation.
Understanding PM-CARES Fund
The PM-CARES Fund was established as a public charitable trust on March 27, 2020. Its primary purpose is to accept donations and provide financial support during crises like the Covid-19 pandemic and other similar emergencies. The fund is different from the Prime Minister’s National Relief Fund (PMNRF). The PM-CARES Fund can receive foreign contributions, and donations made to it are eligible for a 100% tax exemption. The fund’s managing committee consists of the Prime Minister as the chairperson, along with the Defence Minister, Home Minister, and Finance Minister. Three additional trustees are nominated by the Prime Minister from fields such as research, health, science, social work, law, public administration, and philanthropy.
About the Prime Minister’s National Relief Fund (PMNRF)
The PMNRF was initiated in 1948 by then Prime Minister Jawaharlal Nehru. Originally designed to aid displaced persons from Pakistan, it is currently primarily used to handle natural calamities and assist with medical treatments. The PMNRF also accepts public contributions and offers 100% tax deductions under section 80(G) of the Income Tax Act, 1961.
Public Authority Status of PM-CARES and PMNRF
There has been some debate over whether the PM-CARES Fund and the PMNRF are public authorities under the RTI Act, 2005. While the PMO has clarified that the PM-CARES Fund is not a public authority, there is ambiguity regarding the PMNRF’s status. This uncertainty stems from differing views within the Delhi High Court bench about whether the PMNRF fits the description of a public authority.
Audit Procedures for PM-CARES and PMNRF
Both the PM-CARES Fund and the PMNRF are outside the purview of the Comptroller and Auditor General’s (CAG) office since they are treated as charitable organizations. They rely heavily on donations from individuals and organizations, and are audited by independent auditors outside of the government structure.
Section 2(h) of the Right to Information Act, 2005
According to Section 2(h) of the RTI Act 2005, a “public authority” is defined as any authority, body, or self-governing institution established or constituted by the Constitution, Parliament, or any law made by the State Legislature, or by any notification or order issued by the appropriate Government. It also includes any body owned, controlled, or substantially financed, and any non-Government organization substantially financed, directly or indirectly, by the appropriate Government.
Noteworthy Court Ruling
It’s worth noting that in 2019, the Supreme Court declared that the office of the Chief Justice of India (CJI) falls under the definition of a public authority as per the RTI Act, 2005.
