PM National Relief Fund: Should Congress Party President Have Special Rights To Manage Rs 3,800 Crore Donated By Indians?

After Prime Minister (PM) Narendra Modi announced PM-CARES fund to fight against the coronavirus pandemic, questions were raised as to why the already existing PM-National Relief Fund (NRF) was not used.

The PM-NRF was established in 1948 based on an appeal by the then prime minister Jawaharlal Nehru.

The fund was established with public contributions to assist displaced persons from Pakistan, and later on, used to provide relief to families of those killed in natural calamities, or suffering from a life-threatening illness etc.

A reading of the appeal made by Nehru reveals that apart from the PM, deputy PM, finance minister, a representative each of the Tata Trusts and FICCI, he made the Congress party president a member of the fund management committee.

Some say that this was done to give financial control in the hands of the Congress leadership. Others speculate that the Congress party, due to this undue advantage, might have used the funds donated by the common Indians for political purposes.

In Nehru’s defence, one may argue that at the time, the Congress party was represented in the committee not as a political party, but due to its popularity as the successor of the Indian National Movement.

However, today, Congress is just one among several political parties.

From the election of president and vice-president to the parliamentary committees, political parties are given proportional representation - based on the seats they have.

In this context, it is not clear as to why a political party that failed to garner enough seats for Leader of Opposition, should be given an exclusive seat in the management committee of Rs 3,800-crore fund made by people's contribution to the prime minister.

PMNRF has not been constituted by the Parliament. The fund is recognized as a Trust under the Income Tax Act and is managed by the prime minister or multiple delegates.

What about PM-CARES?

“The responsibility of the trustees in PM-CARES has been defined, unlike in the Prime Minister National Relief Fund,” a senior official was quoted as saying by the Economic Times.

PM CARES is a registered trust, with the prime minister as the chairperson.

The chairperson will nominate three people to the board of trustees who shall be eminent persons in the field of research, health, science, social work, law, public administration and philanthropy.

The board of trustees also include the defence minister, home minister and finance minister in ex-officio capacity.

The trustees will also appoint an advisory board of not more than 10 persons from among the medical practitioners, healthcare professionals, academicians, economists and lawyers.