Context: Recently, the Supreme Court has held that funds received into the PM-CARES Fund need not be credited to the National Disaster Response Fund (NDRF) for the fight against the COVID-19 pandemic.
Issue

• The Supreme Court of India on August 18, 2020, refused to direct the transfer of contributions made to PM CARES fund to National Disaster Response Fund (NDRF). The decision came in response to the petition by NGO seeking the transfer of the fund.
• The SC Bench in their decision also mentioned that the contributions made to PM CARES Fund were funds of a charitable trust, however, there was no statutory prohibition on contributions made to NDRF by individuals or any organizations.
• NDRF is a statutory fund that has been created under Section 46 of the Disaster Management Act, 2005. While disposing of the petition, the Supreme Court also mentioned that there is no need for a fresh national disaster relief plan.
• SC has also held that individuals could make voluntary contributions to NDRF under Section 46(1)(b) of the Disaster Management Act of 2005.
• There would be no statutory prohibition against them.

Government’s stand

• It has maintained that PM-CARES is a public charitable trust to which anyone can contribute.
• It is not subject to audit by the CAG. 
• It is not under public scrutiny. 
• Contributions to it are 100% tax free.

How is PM-CARES different from NDRF?

• The nature of National Disaster Response Fund and PM CARES Fund are entirely different.
• The NDRF is a statutory fund created under the Disaster Management Act (DM Act), 2005.
• PM CARES is a public charitable fund created to fight the COVID-19 pandemic and National emergencies.

Does PM Cares require audit by CAG of India?

• Any individual or institution can contribute to PM CARES.
• It does not get any budgetary support and no government money is credited in the PM Cares Fund.
• Since it is a public charitable trust with voluntary donations, no Comptroller & Auditor General audit is required.
• In case of NDRF, the guidelines issued by the central government as per DM Act, provide for audit of the NDRF by CAG.

Is PM Cares a bar on making contributions to NDRF?

• The existence of PM Cares fund is not a bar to contribute to NDRF.
• Any contribution, or grant of any individual or institution is open for contribution to the NDRF in terms of Section 46(1)(b) of the DM Act.
• The guidelines for administration of NDRF provide that any grant that may be made by any person or institution for the purpose of disaster management shall be credited into NDRF.

Can NDRF be used for providing assistance in the fight of Covid-19?

• The Centre can very well utilise NDRF for providing assistance in the fight of COVID-19 pandemic by way of releasing fund on the request of the States as per new guidelines.