Lok Sabha Question No. 402 (UNSTARRED), answered on 2019-06-24
Subject: Misuse of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: Nishikant  Dubey

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON MONDAY THE 24TH JUNE, 2019

## LOK SABHA UNSTARRED QUESTION NO. 402 ASHADHA 3, 1941(SAKA)

## MISUSE OF CSR FUNDS

## QUESTION

402. DR. NISHIKANT DUBEY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the details of companies which spend funds on education and health facilities earmarked  under  Corporate  Social  Responsibility  (CSR)  during  the  last  three years;
- (b)  whether  the  Government  has  received  complaints regarding misuse of CSR funds by PSUs/private companies/institutions during each of the last three years;
- (c) if so, the details thereof along with the action taken under the Companies Act, 2013 by the Government against them during the last three years, company-wise;
- (d) whether the Government ensures proper utilization of funds/monitoring the activities under CSR by PSUs/private companies; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER FOR FINANCE AND CORPORATE AFFAIRS                                         (Ms. NIRMALA SITHARAMAN) वित्त एिं कारपोरेट कार्य मंत्री                                                                                   (श्रीमती विमयला सीतारमण)

(a) : The CSR data as filed by the companies in MCA21 portal is already in public domain which can be accessed at www.csr.gov.in. The Sector-wise details of the companies  are  not  maintained.  However,  the  details  of  amount  spent  on Education and Healthcare  by the  companies upto 20.10.2018 available in MCA21 registry for the last three financial years are detailed below :

Contd….2/

| CSR Expenditure (in Rs. Crores) Filings made by the companies upto 20.10.2018   | CSR Expenditure (in Rs. Crores) Filings made by the companies upto 20.10.2018   | CSR Expenditure (in Rs. Crores) Filings made by the companies upto 20.10.2018   | CSR Expenditure (in Rs. Crores) Filings made by the companies upto 20.10.2018   | CSR Expenditure (in Rs. Crores) Filings made by the companies upto 20.10.2018   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| SI. No.                                                                         | Development Sectors                                                             | 2015-16                                                                         | 2016-17                                                                         | 2017-18                                                                         |
| 1                                                                               | Education (incl. Special Education)                                             | 4208.8                                                                          | 4624.48                                                                         | 2762.11                                                                         |
| 2                                                                               | Healthcare                                                                      | 2574.2                                                                          | 2468.75                                                                         | 1144.83                                                                         |

(b)  to  (e)  :  Whenever,  complaint/violation  of  CSR  provisions  is  reported,  the compliance of CSR provisions by companies is monitored through examination of mandatory  disclosures  made    by  the  companies  in  their  Board's  Report  under provisions of Section 135 r/w Section 134 (3) (o) of the Companies Act. Call for Information  (CFI)  letters  are  issued  to  seek  further  information  as  per  the Companies  Act,  2013.  Further,  after  having  followed  the  due  process,  if  the company is found to be non-compliant, then the prosecution sanction is accorded. The process of scrutiny and filing prosecution for non-compliance is a continuous process.

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