Lok Sabha Question No. 1192 (UNSTARRED), answered on 2019-11-25
Subject: New CSR Rules
Ministry: CORPORATE AFFAIRS
Asked by: Uttam Kumar Nalamada Reddy, T.N. Prathapan

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1192 ANSWERED ON MONDAY THE 25 TH  NOVEMBER, 2019 AGRAHAYANA 4, 1941 (SAKA)

## NEW CSR RULES QUESTION

1192. SHRI UTTAM KUMAR REDDY NALAMADA: SHRI T.N. PRATHAPAN:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the reasons due to which the Government has decided not to operationalise the new CSR rules that make violations a criminal offence;
- (b) the details of the number of cases of CSR rules violation found and action taken against such violators during each of the last five years;
- (c)  whether  the  Government  has  noticed  any  of  the  companies  or  financial institutions committing fraud in their CSR funds, if so, the details thereof;
- (d)  whether  the  Government  proposes  to  conduct  an  investigation  against Manappuram Finance and Kitex Garments Ltd., if so, the details thereof;
- (e) whether the Government has the data on the use of CSR funds in the country, if so, the details thereof, sector-wise; and
- (f) whether the Government has any initiatives to curb such corrupted firms, if so, the details thereof including the number of companies caught in CSR fraud cases during the said period?

## ANSWER

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS                                    (SHRI ANURAG SINGH THAKUR)

वित्त एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री                                                                   (श्री अनुराग स ंह ठाक ु र)

(a): There is an overall effort to decriminalize Companies Act, 2013 ('Act') barring serious fraud and major violations that could have an adverse impact on public interest.

- (b)  to  (f):  The  entire  CSR  architecture  is  disclosure  based  and  CSR  mandated companies  are  required  to  file  details  of  CSR  initiatives  annually  in  MCA21 registry. Centralized Scrutiny and Prosecution Mechanism was setup to monitor CSR  compliance  by  companies.  Whenever  any  violation  of  CSR  provisions  is reported,  action  against  such  non-compliant  Companies  are  initiated  as  per provisions of the Act, after due examination of records following due process of law. Accordingly, sanction for prosecution has been accorded in 366 cases for

financial year 2014-15. All CSR related offences are compoundable. So far, 118 applications  for  compounding  have  been  made  and  37  cases  have  been compounded. Further, call for information letters were issued to 5382 companies seeking information on the compliance of provisions related to Section 135 of the Act and Companies (CSR Policy) Rules, 2014 for financial year 2015-16.

There is no proposal to conduct an investigation against Manappuram Finance Ltd. and Kitex Garments Ltd till date.

The Sector-wise details of the CSR expenditure by Companies during financial years 2014-15, 2015-16, 2016-17 and 2017-18 is annexed.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1192 Development Sector-wise CSR expenditure (in cr.) (Data upto 30.06.2019)

| Development Sector                              | FY 2014-15   | FY 2015-16   | FY 2016-17   | FY 2017-18   | Grand Total   |
|-------------------------------------------------|--------------|--------------|--------------|--------------|---------------|
| Agro Forestry                                   | 18.12        | 57.85        | 43.45        | 12.18        | 131.60        |
| Animal Welfare                                  | 17.29        | 66.67        | 78.65        | 59.48        | 222.09        |
| Armed Forces, Veterans, War Widows/ Dependents  | 4.76         | 11.14        | 37.86        | 27.72        | 81.49         |
| Art And Culture                                 | 117.37       | 119.17       | 305.57       | 283.81       | 825.92        |
| Clean Ganga Fund                                | 5.47         | 32.82        | 24.37        | 4.44         | 67.10         |
| Conservation Of Natural Resources               | 44.60        | 49.85        | 119.09       | 212.74       | 426.28        |
| Education                                       | 2,589.42     | 4,057.45     | 4,500.82     | 4,594.64     | 15,742.32     |
| Environmental Sustainability                    | 773.99       | 796.69       | 1,076.46     | 1,076.42     | 3,723.56      |
| Gender Equality                                 | 55.21        | 73.85        | 72.60        | 20.48        | 222.14        |
| Health Care                                     | 1,847.74     | 2,569.43     | 2,484.05     | 2,192.16     | 9,093.38      |
| Livelihood Enhancement Projects                 | 280.17       | 393.38       | 515.47       | 658.18       | 1,847.19      |
| NEC/ Not Mentioned                              | 1,338.40     | 1,051.16     | 388.96       | 0.76         | 2,779.28      |
| Other Central Government                        | 277.10       | 334.35       | 419.99       | 255.40       | 1,286.83      |
| Funds Poverty, Eradicating Hunger, Malnutrition | 274.70       | 1,252.08     | 606.55       | 635.93       | 2,769.25      |
| Prime Minister's National Relief Fund           | 228.18       | 218.04       | 158.80       | 158.20       | 763.23        |
| Rural Development Projects                      | 1,059.35     | 1,376.16     | 1,554.78     | 1,477.29     | 5,467.58      |
| Safe Drinking Water                             | 103.95       | 180.16       | 147.76       | 180.16       | 612.03        |
| Sanitation                                      | 299.54       | 631.80       | 421.71       | 291.69       | 1,644.75      |
| Senior Citizens Welfare                         | 8.94         | 21.87        | 26.91        | 32.94        | 90.67         |
| Setting Up Homes And Hostels For Women          | 8.74         | 29.28        | 61.97        | 67.73        | 167.72        |
| Setting Up Orphanage                            | 5.12         | 16.90        | 16.80        | 36.86        | 75.68         |
| Slum Area Development                           | 101.14       | 14.10        | 51.49        | 35.11        | 201.84        |
| Socio-Economic Inequalities                     | 39.04        | 77.97        | 148.01       | 134.70       | 399.72        |
| Special Education                               | 41.43        | 125.84       | 164.83       | 122.56       | 454.67        |
| Swachh Bharat Kosh                              | 113.86       | 325.52       | 184.06       | 213.79       | 837.23        |
| Technology Incubators                           | 4.74         | 26.34        | 23.09        | 15.54        | 69.71         |
| Training To Promote Sports                      | 57.62        | 140.12       | 180.33       | 227.50       | 605.57        |
| Vocational Skills                               | 277.07       | 344.39       | 373.46       | 391.73       | 1,386.66      |
| Women Empowerment                               | 72.87        | 122.79       | 141.62       | 200.37       | 537.65        |
| Grand Total                                     | 10,065.93    | 14,517.19    | 14,329.53    | 13,620.51    | 52,533.16     |

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