Lok Sabha Question No. 1945 (UNSTARRED), answered on 2018-12-21
Subject: Compliance of CSR
Ministry: CORPORATE AFFAIRS
Asked by: DEVJI MANSINGRAM PATEL

1945.  SHRI DEVJI M. PATEL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)    whether  some  private  companies  and  multinational  companies  like  Apple India,  Pfizer  and  Nestle  India  are  insensitive  towards  society  as  the  Oracle Financial  Services spent  only Rs.  32.95  crore,  Apple  India  spent  only  Rs.  1.12 crore against a prescribed amount of Rs. 5.45 crore and BMW India spent only Rs. 0.02 crore against a prescribed amount of Rs. 0.47 crore;
- (b) if so, the details thereof and the action taken by the Government against such private and multinational companies for not fulfilling their responsibilities under the Corporate Social Responsibility (CSR); and
- (c)    whether  the  Government  has  taken  any  concrete  step  to  make  these companies accountable towards society and if so, the details thereof?

## ANSWER

MINISTER OF STATE FOR LAW AND JUSTICE

AND CORPORATE AFFAIRS                                              (SHRI P. P. CHAUDHARY)

विवि और न्र्ार् एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री पी॰ पी॰ चौिरी )

(a):  As  per  the  data  obtained  from  the  filings  made  by  the  companies  upto 30.06.2018 in the MCA 21 registry for the financial years 2014-15, 2015-16 and 2016-17, the expenditure made by the subject companies on CSR is given in the Table below.

Contd….2/

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1945

ANSWERED ON FRIDAY THE 21st DECEMBER, 2018

AGRAHAYANA 30, 1940 (SAKA)

COMPLIANCE OF CSR

## QUESTION

(Rs. In Crore)

| Particulars                 | FY 2014-15        | FY 2014-15   | FY 2015-16        | FY 2015-16   | FY 2016-17        | FY 2016-17   |
|-----------------------------|-------------------|--------------|-------------------|--------------|-------------------|--------------|
|                             | Prescribed Amount | Amount Spent | Prescribed Amount | Amount Spent | Prescribed Amount | Amount Spent |
| Apple India Private Limited | 5.45              | 1.12         | 4.81              | 9.26*        | 6.70              | 8.41         |
| BMW India Private Limited   | 2.11              | 2.12         | 1.82              | 1.83         | 1.89              | 1.95         |
| Oracle Financial Services   | 32.95             | 11.93        | 33.44             | 24.85        | 33.53             | 33.72        |
| Pfizer Limited              | 6.02              | 1.29         | 6.25              | 6.44         | 7.04              | 7.88         |
| **Nestle India Limited      | 30.7              | 8.51         | 33.29             | 20.61        | 28.33             | 31.36        |

Section 135 (3) & (4) of the Companies Act, 2013 ('the Act') empowers the Board of the company, and its CSR Committee to select programmes/ projects/ activities to be undertaken, allocation and utilization of CSR funds towards such activities. The Act provides the Board of a company to specify reasons for not/under spending the prescribed  Corporate  Social  Responsibility  amount  and  disclose  the  same  in  its Board Report.

(b)&(c): Whenever, violation of CSR provision is detected, the Registrar of Companies initiates  action  against  such  non-compliant  companies  after  due  examination  of records.  Further,  295  prosecutions  have  been  sanctioned  for  the  financial  year 2014-15 and 33 companies have filed application for compounding for the same year. On the basis of scrutiny, call for information letters to 5,382 companies have been issued for the financial year 2015-16. Ministry has established Centralized Scrutiny and Prosecution Mechanism in April, 2018 for the financial year 2015-16 onwards on pilot basis for enforcement of CSR provisions.

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