Lok Sabha Question No. 1427 (UNSTARRED), answered on 2019-07-01
Subject: Misuse of CSR funds by NGOs
Ministry: CORPORATE AFFAIRS
Asked by: Hemant Tukaram Godse

THE MINISTER OF FINANCE

AND CORPORATE AFFAIRS                                                         (Smt. NIRMALA SITHARAMAN)

वित्त एिं कारपोरेट कार्य मंत्री                                                                                                         (श्रीमती विमयला सीतारामि)

(a): As per the data obtained from the filings made by the companies in the MCA 21 registry, the  details  of  the  amount  spent  by  the  companies  including  PSU/PSEs  under  Corporate Social Responsibility (CSR) for the financial years 2015-16, 2016-17 and 2017-18 are given below:

|                | FY 2015-16       | FY 2015-16                  | FY 2016-17       | FY 2016-17                  | FY 2017-18*      | FY 2017-18*                 |
|----------------|------------------|-----------------------------|------------------|-----------------------------|------------------|-----------------------------|
| Year of Filing | No. of Companies | Total Amount Spent (in Cr.) | No. of Companies | Total Amount Spent (in Cr.) | No. of Companies | Total Amount Spent (in Cr.) |
| PSU            | 461              | 4202                        | 407              | 3286                        | 76               | 1479                        |
| Non PSU        | 21603            | 10325                       | 21063            | 10957                       | 3041             | 6886                        |
| Grand Total    | 22064            | 14527.59                    | 21470            | 14242.41                    | 3117             | 8365.35                     |

(b) to (d): Section 135 of Companies Act, 2013 read with Rule 4 of the Companies (Corporate Social  Responsibility  Policy)  Rules,  2014  prescribes  that  the  Board  of  the  company  is empowered to undertake its CSR activities either itself or through a company established under section 8 of the Act or through a registered society or a registered trust established by the company. Further, the onus lies on the Board of the company to formulate its CSR policy, to monitor and to implement its CSR activities.  Whenever, violation of CSR provisions is noticed, action against such non-compliant companies is initiated as per the provisions of the Companies Act, 2013.

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## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1427 ANSWERED ON MONDAY THE 1 st  JULY, 2019 ASHADHA 10, 1941 (SAKA)

## MISUSE OF CSR FUNDS BY NGOs

## QUESTION

1427. SHRI HEMANT TUKARAM GODSE:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the details of the amount spent by various corporate companies including PSU/ PSE's under Corporate Social Responsibility (CSR) during the last three years and the current year;
- (b) whether the Government has taken cognizance that several companies have set up NonGovernmental Organisations (NGOs) to spend the amount under CSR and are misusing the scheme;
- (c) if so, the details thereof; and

(d) the steps taken by the Government in this regard?

## ANSWER

कारपोरेट कार्य मंत्री