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Congress Cites “Injustice” Over CM Relief Fund Not Included in CSR

The Indian National Congress (INC) has blamed the central government over the exclusion of Chief Minister Relief Fund (CMRF) donations from CSR (Corporate Social Responsibility) funds.

Mumbai| The Indian National Congress (INC) has blamed the central government over the exclusion of Chief Minister Relief Fund (CMRF) donations from CSR (Corporate Social Responsibility) funds.

Sachin Sawant, the General Secretary, and Spokesperson of Maharashtra Pradesh Congress Committee, has written a letter to Balasaheb Thorat, Revenue Minister of Maharashtra. As per the subject cited in the letter, Sawant has flagged “Injustice meted out by the Union Government by denying recognition to the Chief Minister Relief Fund under CSR and making a provision in SDRMF (State Disaster Response and Mitigation Fund) to accept corporate funds”.

Sawant, in the letter, has said, “The Union government has created a new fund called PM-CARES to fight against Covid-19. Although it is a newly created fund, the Union government has made it eligible to receive Corporate funds under Corporate Social responsibility but Chief Minister Relief Fund albeit being in existence for the last several years and proven to be useful in several Disasters has not been considered eligible for CSR funding. This is a very serious injustice”

Sawant further informed that during the video conference between the Prime Minister and Chief Ministers of states on 11 April, many Chief Ministers had registered their disapproval on the same issue including the Chief Minister of Maharashtra. Despite that the Prime Minister refrained from giving any assurance, he said.

He stressed that Maharashtra needs Chief Minister Relief Fund as never before considering the gravity of the Covid-19 problem in Maharashtra, non-receipt of rightful fund from Union government and also their insufficient aid for tackling Covid-19.

He further added, “Although many corporates desire to donate funds in CM relief fund, they will not be able to do so due to non-eligibility under CSR. As it is Many Union Ministers are pressurizing big Industrialists to give funds in PMCares. Hence Government of Maharashtra must persistently demand with the Union Government to consider CM Relief Fund under CSR.”

He said that the National Disaster Response Fund is created in accordance with article 46 of the Disaster Management Act 2005. According to 46 (1B), any grants that may be made by any person or institution for the purpose of disaster management can be accepted in this Fund. Similarly by article 48 of the same act State government created State Disaster and Response Mitigation Fund. But in the said act no such provision of accepting grants from Individual or any institution is mentioned Due to this ambiguity till today state government has not accepted any grant from any individual or institution in the said fund, he said.

Taking on the Union Government on the issue of CSR, Sawant added, “As per the central government’s general circular number 10/2020 dated 23 March 2020, Companies will be able to spend individually for Covid-19 according to the provisions of companies act 2013 and take benefit of CSR but there will not be any control of State government. Moreover in the present situation against the backdrop of Covid-19 companies will not be able to use these funds since they are lacking human resource and will prefer to give it in PMCares fund. This clearly is the motive of the Union government.”

He further advised that if he Union government does not pay heed to the demand of considering CM Relief Fund under CSR then CSR as per the general circular no 15/2020 of April 10, 2020, permission to accept private or Corporate funds in SDRMF should be sought which will help state government as these funds will automatically come under CSR.

Sawant has also forwarded the letter to the Chief Minister of Maharashtra as well as Deputy Chief Minister and Finance Minister of Maharashtra.

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