PM CARES Fund Queries Not Admissible in Lok Sabha

The PMO has made it clear that any queries or issues regarding PM CARES Fund, National Defence Fund (NDF) and Prime Minister Relief Fund (PMNRF) cannot be discussed under the Rules of Procedure or Business.

This position has received significant attention in recent news updates. There continues to be much discussion and media coverage regarding the transparency and accountability of how Governments spend public funds.

Reference to “Rules of Procedure” as basis for Inadmissibility

In its communications with each of the three funds dated January 30th the Prime Minister’s Office (PMO) referenced both: “Rule 41 (2) (viii) & Rule 41 (2) (xvii)”. As a basis for not presenting an issue related to the PM CARES Fund, PM National Relief Fund and National Defence Fund. It was by starting from; “Issues must not relate to matters which are not largely of Government of India interest;”

Then Rule 41 (2) (xvii)- Also goes further to say that Government entities/their representatives cannot ask questions. That means as an example of an issue where the Government and/or any of its representative(s) are responsible would also not be acceptable for discussion in the House.

Thus the PMO stated that these statements apply to both inquiries and Zero Hour notices or special mentions of the three funds. It will have to be combined with additional requests for disclosure made under other laws or statutes.

The Resources are Discretionary Types

The PMO has stated that the resources from the PM CARES Fund, the PMNRF as well as the NDF are comprised entirely of voluntary donations from the public. Therefore cannot be used by way of the Consolidated Fund of India (CFI). Since there is no government budget support available for these resources. Parliamentarian oversight under current rules does not exist.

The PMO has declined to respond to any inquiries made for comment on the communication from the Lok Sabha Secretariat.

History of PM CARES Fund

The PM CARES Fund was established on March 27, 2020. It was in response to the Covid-19 pandemic crisis. The official website of the PM CARES Fund states that it was formed to assist in situations of emergency/crisis. Also, it is to provide assistance to individuals who have been affected by such emergencies.

PM CARES Fund is registered as a public charitable trust under the Registration Act of 1908 in New Delhi.

As per the receipts and payments account for the year ending March 2023, the PM CARES Fund closed with a surplus balance of Rs 6,283.7 crores. It is the most recent record available.

Legal Position Disclosed Earlier

In January 2023, the Government of India advised the Delhi High Court that the PM CARES Fund had not been established under the Constitution or by any legislation of the Parliament or state assembly. The intent of the application was to request that a judicial body declare funds held within the PM CARES Fund (“PM CARES”). It was to be “State” under Article 12 of the Constitution for purposes of transparency.

The Union of India stated that the Government has no ownership or control over the Trust. Also, the inclusion of public office holders on the Trust Board is for purposes of administrative convenience. The Union of India also stated that PM CARES does not qualify as a public authority under the Right To Information Act.

Supreme Court Remarks

In August 2020, the Supreme Court ruled that PM CARES funds would not be transferred to the National Disaster Relief Fund (“NDRF”). It is because the two funds serve distinct purposes and have separate functions. The NDRF is subject to auditing by the CAG. On the other hand, PM CARES, being a public charitable trust, is not.

Regarding PMNRF and NDF

The Prime Minister’s National Relief Fund (“PMNRF”) was established in 1948. It was to provide financial assistance to the families of victims of natural disasters, accidents, and civil disturbance. The National Defence Fund (“NDF”) provides assistance to members of the Armed Forces and their families. So, this is supervised by an Executive Committee chaired by the Prime Minister. The PMO’s explanation is anticipated to impact upcoming parliamentary activities related to these funds. Particularly in light of ongoing recent reports concerning governance and accountability.