HC suggests govt. control over crowdfunding


The Kerala High Court on Friday sought the views of the State government on governmental control over raising funds for medical treatment through crowdfunding.

Expressing its displeasure over the free for all situation and some YouTubers raising charity money using their account numbers, the court noted that there should be a government policy covering the activities.

The court made the observations while considering a petition from a parent in Malappuram, who sought court intervention for medical treatment for his child suffering from a rare disease.

A framework was required for crowd-funding and the government should discharge its responsibilities as a watchdog. Kind-hearted citizens shall not be cheated and the government should put in place a system for preventing instances of cheating, the court felt.

Calling for government control over crowdfunding activities, the court raised questions about the sources from which money was being raised for medical treatment and utilised. The government should inform the court about the provisions to control crowdfunding in the State, the court said.

Expressing concern over every Tom Dick and Harry collecting money for medical treatment, the court felt while YouTubers could campaign for raising funds, money should come to a government platform.

Incidentally, over ₹18 crore was raised recently through crowdfunding for the treatment of a child diagnosed with a rare disease.

While the government could raise only ₹68 lakh for providing free vaccines, ₹18 crore was collected in a few days for the treatment of the child suffering from singular muscular atrophy. The court did not want to interdict the crowdfunding process but a government control over it was needed, the court noted.

The court posted the case for July 19.


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