Page 48 - GSTL_3rd September 2020_Vol 40_Part 1

J30 GST LAW TIMES [ Vol. 40
The Ministry of Corporate Affairs in its reply has also mentioned that the
Government has set it up to enable donations to be considered as CSR spending.
Transparency activist Anjali Bhardwaj had filed queries under the Right
to Information Act with the Prime Minister’s Office, Cabinet Secretariat, Ministry
of Corporate Affairs, Ministry of Law and Justice, Ministry of Labour and Em-
ployment and Chief Labour Commissioner regarding various aspects of the PM-
CARES fund, which was set up on March 27.
In its response, the Cabinet Secretariat revealed that “there was no agen-
da item in any Cabinet meeting specifically related to the creation of the PM-
CARES fund”.
The RTI response from the Ministry of Corporate Affairs showed that on
March 28, its office memorandum said donations to the PM-CARES qualifies un-
der Corporate Social Responsibility (CSR) activities as it was set up by the Cen-
tral Government. In the office memorandum on clarification on contribution to
PM-CARES fund as eligible CSR activity, the Ministry said the Companies Act,
2013 provides that contribute to any fund set up by the Central Government for
socio-economic development and relief qualifies as CSR expenditure.
“The PM-CARES Fund has been set up to provide relief to those affected
by any kind of emergency or distress situation. Accordingly, it is clarified that
any contribution made to the PM-CARES Fund shall qualify as CSR expendi-
ture...” it said.
However, in late May, the Companies Act was retrospectively amended
to include donations to PM-CARES as CSR activity so that it was not dependent
on the definition that the fund was set up by the Government.
RTI queries seeking details of donations were stonewalled by the Gov-
ernment citing that the fund was set up as a public charitable trust and not a
public authority under the transparency law.
“The documents from MoCA relied on the fact that the fund has been set
up by the Central Government to approve it for CSR funding. It appears odd that
the decision to set up a body in which the Prime Minister is the chairperson in an
ex officio capacity and three Ministers are trustees, in an ex officio capacity, did not
go through the cabinet,” Bhardwaj said.
The Ministry of Law and Justice has so far not responded to Bhardwaj’s
query whether its comments sought on the setting up of the fund.
[Source : Deccan Herald, Bangalore, dated 22-8-2020]

SC order on PM CARES, blow to accountability

The judgment of the Supreme Court regarding ‘PM CARES Fund’ inflicts
a serious blow to the accountability of institutions carrying out public activities.
The public nature of the charitable trust and enormous tax reliefs granted to it
was ignored by the Apex Court. It is unfortunate. It might embolden every State
Government also come up with such funds which are not accountable.
BJP Executive President Nadda commented that this judgment was a
blow to Rahul Gandhi and his Congress party. The Union Government has total-
ly ignored the statute-provided trust - National Disaster Response Fund, (NDRF)
under National Disaster Management Act, 2005, with sufficient provisions of
accountability and auditing. It has created another ‘fund’ without any strict pro-
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