PM CARES Fund: ICAI donated Rs 19.3 crore after being ‘requested’ by Ministry of Corporate Affairs

The Supreme Court of India has held that the PM CARES Fund, which was constituted by PM Narendra Modi after the COVID-19 pandemic hit India, is a “charitable trust” which cannot be audited by the CAG and whose funds cannot be transferred to the PMNRF. With this, the apex court put a full stop to the debate on whether it’s a public or private entity.

The PMO has already declined to share details about it with RTI applicants by stating that the Fund does not come under the purview of the RTI Act 2005.

It is therefore intriguing that a top government official working with the Ministry of Corporate Affairs had shot off letters to institutions and individuals requesting donations for the Fund.

Documents accessed by National Herald show that Injeti Srinivas, an IAS officer who was posted as Secretary, Ministry of Corporate Affairs made an emphatic ‘appeal’ to Institute of Chartered Accounts of India (ICAI) to donate at least 10 crores to the Fund.

Addressing ICAI’s chief, Atul Gupta, the letter sent by Srinivas on sent on April 5 – seven days after the PM CARES Fund was set up – reads, “In your capacity as the President of the Institute of Chartered Accountants of India (ICAI), I would like to appeal to ICAI, through you, to contribute generously to the PM CARES Fund in the hour of crisis. ICAI may like to consider at least Rs. 10 crore in contribution from its corpus fund to supplement government’s effort in combating COVID-19.”

“I am confident that ICAI would set an example for others to emulate,” said Srinivas in his letter. It is relevant to note here that ICAI contributed Rs 21 crore to the PM CARES Fund and PMNRF. While Rs 1.72 crore was deposited in PMNRF on March 31, 2020, Rs 4.28 crore was deposited in PM CARES Fund by April 20, 2020.

Further, responding to the clarion call made by the Ministry of Corporate Affairs, the ICAI had additionally contributed Rs.15 crore to the PM CARES Fund from the corpus fund of the ICAI.

Though the generous donation from the ICAI towards the Fund has been challenged by RTI activist Navneet Chaturvedi in the Delhi High court on the ground that the donation has violated the Chartered Accountants Act, 1949, both the ICAI chief and the Secretary, MCA maintain that they have done no wrong.

Gupta told NH over the phone, “Being head of the ICAI, I have every right to ask the members for donation... especially in the time of national crisis; what is wrong in offering donations? I can use the corpus fund for the social cause”.

Saying that the “core question involved in this case is how can an institute transfer a huge amount in contravention of law”, the petitioner in Delhi HC, Navneet Chatuvedi has that while Gupta asked members of the ICAI to donate money, he didn't contribute a single paisa on his own.

With regard to the letter issued by Srinivas, Chaturvedi asked, “How can a serving officer issue a letter seeking donation in crores?”

A copy of the letter written by Srinivas seeking the donation can be read here :

When questioned, Srinivas, who is currently working as chairman of the International Financial Services Centre Authority (IFSCA), Gandhi Nagar, said that he wrote the letter seeking donation in his official capacity.

Saying that the Ministry of Corporate Affairs functions as the administrative ministry of ICAI, he said, “The letter referred to in your mail was an appeal made to ICAI to contribute generously towards a national cause at a time of unprecedented public health crisis. I saw it as my duty then, and see nothing objectionable even now in the appeal made to ICAI for making a generous contribute to PM CARES Fund, which is dedicated to providing citizens with relief assistance during such serious public health situations.”

“Not only the President, ICAI but a similar appeal was also made to the President, ICSI and President, ICoAl,” he said.

Meanwhile, it has come to the fore that as many as 38 PSUs have jointly donated Rs 2,105 crore to the PM CARES Fund since it was launched by the PM in March this year.

Based on RTI replies, The Indian Express has claimed that the companies have made the donations from their CSR funds. As per the report, while ONGC – in which BJP spokesman Sambit Patra has been appointed a director by the Modi government – has donated Rs 300 crore, the NTPC donated 250 crore. The list of the donation can be seen below.