Lok Sabha Question No. 88 (UNSTARRED), answered on 2019-11-18
Subject: CSR Law
Ministry: CORPORATE AFFAIRS
Asked by: Sudheer Gupta, Gajanan Chandrakant Kirtikar, Bidyut Baran Mahato, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik

88. SHRI SUDHEER GUPTA:

SHRI SANJAY SADASHIV RAO MANDLIK:

SHRI BIDYUT BARAN MAHATO:

SHRI GAJANAN KIRTIKAR:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the Government has amended the Corporate Social Responsibility (CSR) laws  with  prospective  effect  and  companies  have  time  until  July  2024  to  use accumulated CSR funds in projects of their choice and if so, the details thereof;
- (b)  whether  the  Parliament  has  passed  a  legislation  under  which  unspent  CSR allocations would have to be transferred to a fund specified by the Government and if so, the details thereof;
- (c) whether the Government proposes to use the appropriated unspent CSR fund for the welfare programmes and if so, the details thereof;
- (d)  whether  the  Government  has  sent  show-cause  notices  to  more  than  5000 companies for defaulting on their mandatory CSR obligations;
- (e) if so, the details thereof and the response of the said companies in this regard; and
- (f)  whether  the  Government  has  any  plan  to  take  any  legal  action  or  impose monetary penalty on CSR defaulters and if so, the details thereof and the framework devised by the Government in this regard?

## 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)  &  (b):  Companies  (Amendment)  Act,  2019  has  amended  Section  135(5)  and inserted  Section  135(6)  which  provides  that  if  a  company  fails  to  meet  its  CSR spending obligation, the unspent amount shall be transferred within a period of 30 days from the  end of  concerned  financial year to   a   special   account  called  as Contd…2/-

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 88 ANSWERED ON MONDAY THE 18TH NOVEMBER, 2019 KARTIKA 27, 1941 (SAKA)

CSR LAW

QUESTION

कारपोरेट कार्य मंत्री

'Unspent Corporate Social Responsibility Account' opened by the Company in any scheduled bank if it is an ongoing project. Any amount remaining unspent in that special account after a period of three years, the same shall be transferred to a Fund to be specified in Schedule VII of the Act within a period of 30 days from the date of completion of the third financial year. In case of other than ongoing projects, the unspent amount shall be transferred to a Fund to be specified in Schedule VII of the Act within six months from the end of financial year.

(c): The unspent CSR fund, if any, would be used for funding activities enlisted under Schedule VII of the Companies Act, 2013.

(d)  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. Whenever  any  violation  of  CSR  provisions  is  reported,  action  against  such  noncompliant Companies are initiated as per provisions of Companies Act, 2013 after due examination of records. Accordingly, call for information letters were issued to 5382 companies seeking information on the compliance of provisions related to section 135 of the Companies Act, 2013 and Companies (CSR Policy) Rules, 2014.

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