Lok Sabha Question No. 122 (STARRED), answered on 2019-07-01
Subject: Performance of CSR
Ministry: CORPORATE AFFAIRS
Asked by: Ramdas Chandrabhanji Tadas, Chandra Prakash Joshi

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 122 ANSWERED ON MONDAY THE 01ST JULY, 2019 ASHADHA 10, 1941 (SAKA)

## PERFORMANCE OF CSR QUESTION

*122. SHRI RAMDAS C. TADAS: SHRI CHANDRA PRAKASH JOSHI:

कारपोरेट कार्य मंत्री

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether  the  performance  of  the  Corporate  Social  Responsibility  (CSR) activities of profit-making companies, public sector companies and other private companies has been satisfactory during the last two years;
- (b) whether the Government is monitoring it regularly and if so, the details thereof;
- (c) the details of the schemes under which companies are engaged in CSR activities;
- (d) whether  the  companies  are  adhering  to  the  guidelines  issued  by  the Government; and
- (e) whether any violation of the guidelines and misuse of funds have been reported during the said period and if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER

THE MINISTER OF FINANCE AND CORPORATE AFFAIRS                                 (Smt. NIRMALA SITHARAMAN) वित्त एिं कारपोरेट कार्य मंत्री                                                                              (श्रीमती विमयला सीतारामि)

(a) to (e): A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO.122* (2ND POSITION) FOR 1ST JULY, 2019 REGARDING PERFORMANCE OF CSR.

(a) to  (e):  India  is  the  first  country  in  the  world  to  make  Corporate  Social Responsibility  (CSR)  mandatory  for  all  profit  making  companies  meeting certain  threshold  under  the  Companies  Act,  2013  ('Act').  Given  that  the obligation under the CSR provisions have been in existence from FY 2014-15 only,  there  has  been  considerable  progress  both  in  terms  of  number  of companies contributing to CSR and overall CSR spent. As per the filings made by companies in the MCA21 registry, details of amount spent by Public Sector Undertakings (PSUs) and private companies is as under;

|                | FY 2014-15        | FY 2014-15                  | FY 2015-16        | FY 2015-16                  | FY 2016-17        | FY 2016-17                  | FY 2017-18*       | FY 2017-18*                 |
|----------------|-------------------|-----------------------------|-------------------|-----------------------------|-------------------|-----------------------------|-------------------|-----------------------------|
| Year of Filing | No. of Compa nies | Total Amount Spent (in Cr.) | No. of Compa nies | Total Amount Spent (in Cr.) | No. of Compani es | Total Amount Spent (in Cr.) | No. of Compa nies | Total Amount Spent (in Cr.) |
| PSU            | 380               | 2816.82                     | 461               | 4202.14                     | 407               | 3285.52                     | 76                | 1479.33                     |
| Non PSU        | 16405             | 7249.11                     | 21603             | 10325.45                    | 21063             | 10956.89                    | 3041              | 6886.02                     |
| Grand Total    | 16785             | 10065.93                    | 22064             | 14527.59                    | 21470             | 14242.41                    | 3117              | 8365.35                     |

- *Data upto 20.10.2018

The  entire  CSR  architecture  is  disclosure  based  and  CSR  mandated companies  are  required  to  file  CSR  initiatives  in  annual  filing  in  MCA21 registry.  Government  has  recently  established  Centralized  Scrutiny  and Prosecution Mechanism to monitor the compliance by companies. Whenever any violation from CSR provisions are found, notices for call for information are issued. Where non-compliance is established, sanction for prosecution is accorded following the due process of law. So far, sanction for prosecution has  been  accorded  in  366  cases  for  the  F.Y.  2014-15  and  5,382  call  for information notices have been issued in F.Y. 2015-16. All CSR related offences are compoundable. So far 60 applications for compounding has been received.

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