Lok Sabha Question No. 910 (UNSTARRED), answered on 2018-12-14
Subject: CSR Irregularities
Ministry: CORPORATE AFFAIRS
Asked by: JAYSHREEBEN  PATEL

## GOVERNMENT OF INDIA

ANSWERED ON FRIDAY THE 14th DECEMBER, 2018/

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO.  910 AGRAHAYANA 23, 1940 (SAKA) CSR IRREGULARITIES

## QUESTION

910.  SHRIMATI JAYSHREEBEN PATEL:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the number of registered companies in the country, State-wise;
- (b) the number of companies out of that which come under Corporate Social Responsibility (CSR) rules;
- (c) the number of farmers connected under it at present;
- (d) the details of types of irregularities committed by the companies under CSR; and
- (e) the details of steps taken by the Government to check such companies?
- ANSWER

## THE 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):  A total of 18,10,813 companies have been registered in the country, of which a total of 11,16,362 companies were active as on 31st October, 2018.  State-wise /UT-wise data is Annexed.
- (b):  Section 135 of the Companies Act, 2013 ('the Act') mandates every company above the specified thresholds of turnover, or net worth, or net profit to spend at least two per cent of the average net profits earned during the three immediately preceding  financial  years  on  Corporate  Social  Responsibility  (CSR)  activities specified in Schedule VII of the Act.  As per the filings made by the companies upto 30.06.2018 in the MCA 21 registry, the data for the financial years 2014-15, 2015-16 and 2016-17 is as follows:-

|   Sl. No | Financial Year   | Number of Companies which reported CSR expenditure   |
|----------|------------------|------------------------------------------------------|
|        1 | 16,785           | 2014-15                                              |
|        2 | 21,498           | 2015-16                                              |
|        3 | 19,933           | 2016-17                                              |

कारपोरेट कार्य मंत्री

(c):  No such data is maintained in the Ministry.

(d)&  (e)  :      Whenever,  violation  of  CSR  provisions  is  reported,  the  Registrar  of Companies initiates action against such non-compliant companies after due examination of records. For the FY 2014-15, prosecution against 284 companies was sanctioned  out  of  which  33  companies  have  filed  application  for  compounding. Ministry  has  established  Centralized  Scrutiny  and  Prosecution  Mechanism(CSPM)  in April,  2018  for  the  financial  year  2015-16  onwards  on  pilot  basis  for  enforcement  of CSR  provisions.  Based  on  scrutiny,  preliminary  notices  have  been  issued  to  5,382 companies for financial year 2015-16.

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## Annexure I

ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 910

State/UT-wise Status of Companies Registered as on 31st October, 2018

| Sl. No.   | State                | Registered   | Active    |
|-----------|----------------------|--------------|-----------|
| 1         | Andaman & Nicobar    | 418          | 308       |
| 2         | Andhra Pradesh       | 29,126       | 17,951    |
| 3         | Arunachal Pradesh    | 576          | 240       |
| 4         | Assam                | 10,880       | 6,439     |
| 5         | Bihar                | 30,133       | 20,047    |
| 6         | Chandigarh           | 14,294       | 8,009     |
| 7         | Chattisgarh          | 9,580        | 6,786     |
| 8         | Dadra & Nagar Haveli | 506          | 372       |
| 9         | Daman and Diu        | 373          | 242       |
| 10        | Delhi                | 326,088      | 197,692   |
| 11        | Goa                  | 8,406        | 4,182     |
| 12        | Gujarat              | 97,494       | 59,427    |
| 13        | Haryana              | 41,838       | 29,625    |
| 14        | Himachal Pradesh     | 5,969        | 3,698     |
| 15        | Jammu & Kashmir      | 5,284        | 2,775     |
| 16        | Jharkhand            | 13,000       | 9,033     |
| 17        | Karnataka            | 110,365      | 69,962    |
| 18        | Kerala               | 49,436       | 30,644    |
| 19        | Lakshadweep          | 15           | 9         |
| 20        | Madhya Pradesh       | 37,158       | 21,789    |
| 21        | Maharashtra          | 359,452      | 225,839   |
| 22        | Manipur              | 727          | 515       |
| 23        | Meghalaya            | 1,016        | 564       |
| 24        | Mizoram              | 141          | 72        |
| 25        | Nagaland             | 554          | 217       |
| 26        | Orissa               | 24,007       | 14,262    |
| 27        | Pondicherry          | 3,116        | 1,318     |
| 28        | Punjab               | 30,153       | 17,462    |
| 29        | Rajasthan            | 55,823       | 34,923    |
| 30        | Sikkim               | 2            | 2         |
| 31        | Tamil Nadu           | 138,673      | 72,692    |
| 32        | Telangana            | 100,768      | 57,811    |
| 33        | Tripura              | 483          | 326       |
| 34        | Uttar Pradesh        | 98,719       | 69,120    |
| 35        | Uttarakhand          | 7,280        | 4,828     |
| 36        | West Bengal          | 198,960      | 127,181   |
| Total     | Total                | 18,10,813    | 11,16,362 |

Source: Monthly Information Bulletin, Ministry of Corporate Affairs, 31 st  October, 2018.

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