Lok Sabha Question No. 2782 (UNSTARRED), answered on 2018-08-03
Subject: CSR Irregularities
Ministry: CORPORATE AFFAIRS
Asked by: JAYSHREEBEN  PATEL

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO.  2782 ANSWERED ON FRIDAY THE 3 rd  AUGUST, 2018/ SHRAVANA 12, 1940 (SAKA)

## CSR IRREGULARITIES

## QUESTION

2782.  SHRIMATI JAYSHREEBEN PATEL: Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the number of companies registered in the country, State-wise;
- (b) the  number of companies, out of these, come under Corporate Social Responsibility (CSR) penalized funds collected/spent, developmental works taken under CSR during the last three years;
- (c) the number of farmers associated/ under CSR in the country at present;
- (d) the details of kinds of irregularities committed by companies under CSR; and
- (e) the details of measures suggested by the Government to check such irregularities?

## ANSWER

## THE MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS                                                               (SHRI P. P. CHAUDHARY)

विधि और न्र्ार् एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री पी॰ पी॰ चौिरी )

- (a): The details of the number of companies registered in the country, state-wise /UT-wise are at Annexure-I.
- (b):    Every  company  having  net  worth  of  Rs.  500  crore  or  more  or  turnover  of  Rs.  1000 crore  or  more  or  net  profit  of  Rs.  5  crore  or  more  during  the  immediately  preceding financial  year  shall  be  liable  to  spend  at  least  2%  of  the  average  net  profits  of  the company  made  during  the  three  immediately  preceding  financial  years  on  Corporate Social Responsibility (CSR) activities in areas or subjects specified in Schedule VII of the Companies Act, 2013 ('Act'). The number of companies eligible for CSR and the sectorwise expenditure for FY 2014-15, 2015-16 and 2016-17 is at Annexure II.
- (c):  The details of CSR expenditure are captured sector wise and no data on beneficiaries of  CSR,  including  farmers,  is  captured  through  filings  made  under  the  Act  in  MCA21 Registry.
- (d)  &  (e):  Whenever, violation of CSR provisions is reported, the Registrar of Companies initiates action against such non-compliant companies after due examination of records. For the FY 2014-15, prosecution against 254 companies was sanctioned out of which 33 companies have filed applications for compounding. In addition to this, the Ministry has established a Centralized Scrutiny and Prosecution Mechanism (CSPM) in April, 2018 from FY  2015-16  onwards  on  pilot  basis  for  enforcement  of  CSR  provisions.  CSPM  has  been tasked to start with examination of records of top 1000 companies mandated to spend on CSR. Based on scrutiny, preliminary notices have been issued to 272 companies.

कारपोरेट कार्य मंत्री

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Annexure I

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2782 NUMBER OF COMPANIES REGISTERED IN INDIA (STATE-WISE)

| Sl. No.   | State                | Number of Companies*   |
|-----------|----------------------|------------------------|
| 1.        | Andaman & Nicobar    | 412                    |
| 2.        | Andhra Pradesh       | 28676                  |
| 3.        | Arunachal Pradesh    | 575                    |
| 4.        | Assam                | 10875                  |
| 5.        | Bihar                | 29447                  |
| 6.        | Chandigarh           | 14267                  |
| 7.        | Chhattisgarh         | 9436                   |
| 8.        | Daman and Diu        | 369                    |
| 9.        | Delhi                | 323771                 |
| 10.       | Dadra & Nagar Haveli | 508                    |
| 11.       | Goa                  | 8327                   |
| 12.       | Gujarat              | 96595                  |
| 13.       | Himachal Pradesh     | 5906                   |
| 14.       | Haryana              | 40769                  |
| 15.       | Jharkhand            | 12727                  |
| 16.       | Jammu & Kashmir      | 5251                   |
| 17.       | Karnataka            | 108378                 |
| 18.       | Kerala               | 48861                  |
| 19.       | Lakshadweep          | 15                     |
| 20.       | Maharashtra          | 358132                 |
| 21.       | Meghalaya            | 1068                   |
| 22.       | Manipur              | 729                    |
| 23.       | Madhya Pradesh       | 36748                  |
| 24.       | Mizoram              | 138                    |
| 25.       | Nagaland             | 569                    |
| 26.       | Orissa               | 23636                  |
| 27.       | Punjab               | 29980                  |
| 28.       | Pondicherry          | 3252                   |
| 29.       | Rajasthan            | 55248                  |
| 30.       | Sikkim               | 2                      |
| 31.       | Telangana            | 99288                  |
| 32.       | Tamil Nadu           | 137788                 |
| 33.       | Tripura              | 467                    |
| 34.       | Uttar Pradesh        | 96405                  |
| 35.       | Uttarakhand          | 7085                   |
| 36.       | West Bengal          | 199118                 |
| 37.       | Not assigned         | 606                    |
|           | Grand Total          | 17,95,424              |

## ANNEXURE II ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2782 COMPANIES ELIGIBLE FOR CSR FOR FY 2014-15, FY 2015-16 AND FY 2016-17

|   Sl. No | Financial Year   | No. of Companies   |
|----------|------------------|--------------------|
|        1 | 2014-15          | 14,944             |
|        2 | 2015-16          | 19,184             |
|        3 | 2016-17*         | 62,86              |

## SECTOR-WISE CSR EXPENDITURE FOR FY 2014-15,  FY 2015-16 AND FY 2016-17

| CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )                                                                | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   | CSR Expenditure ( In Rs. Crores )   |
|-------------------------------------|--------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| SI. No.                             | Sectors                                                                                          | 2014-15                             | 2015-16                             | 2016-17*                            |
| 1.                                  | Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation           | 2,382.27                            | 4,330.21                            | 1,201.37                            |
| 2.                                  | Education/ Differently Abled/ Livelihood                                                         | 3,021.47                            | 4,689.81                            | 1,605.05                            |
| 3.                                  | Rural development                                                                                | 1,031.02                            | 1,327.57                            | 628.56                              |
| 4.                                  | Environment, Animal Welfare, Conservation Of Resources                                           | 812.31                              | 901.80                              | 306.68                              |
| 5.                                  | Swachh Bharat Kosh                                                                               | 94.52                               | 323.24                              | 89.35                               |
| 6.                                  | Any Other Funds                                                                                  | 272.58                              | 322.63                              | 137.70                              |
| 7.                                  | Gender equality / Women empowerment / Old age homes / Reducing inequalities                      | 172.63                              | 331.50                              | 122.60                              |
| 8.                                  | Prime Minister's National Relief Fund                                                            | 211.04                              | 206.08                              | 109.81                              |
| 9.                                  | Encouraging Sports                                                                               | 53.36                               | 134.76                              | 51.73                               |
| 10.                                 | Heritage Art and Culture                                                                         | 113.62                              | 114.90                              | 49.64                               |
| 11.                                 | Slum Area Development                                                                            | 101.07                              | 13.60                               | 1.97                                |
| 12.                                 | Clean Ganga Fund                                                                                 | 4.64                                | 32.52                               | 22.97                               |
| 13.                                 | Other Sectors ( Technology Incubator And Benefits To Armed Forces, Admin Overheads and others**) | 1,294.24                            | 1,099.24                            | 391.57                              |
|                                     | Total Amount (in Rs. Crores)                                                                     | 9,564.77                            | 13,827.86                           | 4,719.00                            |

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