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Synopsis

The Central Government has clarified its stand on the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund.

In its affidavit filed before the Delhi High Court submitted that PM CARES Fund was established and continues to operate only for charitable purposes, neither is it used for any government initiatives nor is it subject to any of the regulations set forth by the government.

The Centre informed the High Court that the Trust operates on the same principles of openness and the greater good as any other charity trust, so it cannot object to posting all of its resolutions on its website to maintain transparency.

Furthermore, it stated that "contributions made to PMCARES Fund/Trust are exempted under the Income Tax Act,1961, but that by itself would not justify the conclusion that it is a "Public Authority".

The affidavit clarified that the PM CARES fund is a public charitable trust comprising voluntary donations made by individuals and institutions and is not a business of the Central Government. "Besides, the PM CARES fund does not receive funds or finances by the Government," the affidavit added.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad on Tuesday heard arguments of Senior Advocate Shyam Divan, for the petitioner and listed the matter for hearing Solicitor General Tushar Mehta on a later date.

The affidavit has been filed in plea a filed by Samyak Gangwal stating that PM CARES Fund performs a public function, which is similar to government functions. It utilises the privileges, benefits, and exemptions which are reserved for the state.

Today, Divan submitted that the Fund has been represented by all the State machineries as a Government initiative and requested the public at large to donate. "Merely by declaring in a trust deed that you are not a 'state' doesn't exclude you from coming under the constitution," Divan added.

"If it's not 'State' then it must be declared that it is not the Government of India and it must be restrained from using Prime Minister's office, Ashok chakra, Government's website, etc. You can't have a hybrid situation," Divan added.

The plea argued, “It is unimaginable that a fund, which has been set up by the Prime Minister of India, has been declared to be a fund over which there is no government control.”

Additionally, it submitted that Art. 12 of the Constitution of India reads thus, “Definition in this part unless the context otherwise requires, the State includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India.”

Case Title: Samyak Gangwal Vs. CPIO, PM Office & Ors.

Statute: Income Tax Act 1961, The trust deed of PM CARES Fund, the Registration Act, 1908 & the Constitution of India.