Lok Sabha Question No. 192 (STARRED), answered on 2021-08-02
Subject: Utilisation of CSR funds
Ministry: CORPORATE AFFAIRS
Asked by: Shrikant Eknath Shinde, Heena Vijaykumar Gavit

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

STARRED QUESTION NO. 192

ANSWERED ON MONDAY, 2 ND  AUGUST, 2021/SRAVANA 11, 1943 (SAKA)

## UTILISATION OF CSR FUNDS QUESTION

*192.  DR. SHRIKANT EKNATH SHINDE: DR. HEENA GAVIT:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री

be pleased to state:

- (a) the funds spent by the Government and private sector banks and companies under the Corporate Social Responsibility (CSR) during the last three years, State-wise including in Maharashtra;
- (b) whether the Government has audited CSR funds spent by the said Government and private sector banks and companies and if so, the details thereof; and
- (c) whether it has come to notice that thousands of companies have failed to spend funds under CSR policy, if so, the details thereof and the action being taken by the Government against these companies?

## ANSWER

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

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

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STATEMENT  REFERRED  TO  IN  ANSWER  TO  PART  (a)  TO  (c)  OF  LOK  SABHA STARRED  QUESTION  NO. *192 (12 TH POSITION) FOR  2 ND   AUGUST,  2021 REGARDING UTILISATION OF CSR FUNDS. (a):      As  per  the  input  provided  by  the  Department  of  Financial  Services,  Public Sector  Banks  are  established  under  the  State  Bank  of  India  Act,  1955  and  the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/80 and are not  companies incorporated under the Companies Act, 2013 ('Act) or under any previous company law. As such, the provisions of Corporate Social Responsibility (CSR) mentioned in Section 135 of the Act are not applicable to Public Sector Banks. On the basis of the filings made by the companies in the MCA 21 registry, CSR funds spent by the companies, including private sector banks incorporated under the Act, in different States /Union Territories (UTs) during the last three financial years are annexed. (b):   Under the Act, CSR is a Board driven process and the Board of the company is empowered  to  plan,  decide,  execute  and  monitor  CSR  activities  based  on  the recommendation of its CSR Committee. The CSR architecture is disclosure based and CSR mandated companies are required to file details of CSR activities annually in  the  MCA21  registry.  The  CSR  mandated  companies  are  required  to  provide additional information in its Profit & Loss Account regarding amount of expenditure incurred on CSR activities and the same is required to be audited by the statutory auditor  of  the  company.  Further,  the  Board  of  the  company  is  also  required  to disclose the CSR Policy developed and implemented by the company in its Board report.  Thus, the corporate governance framework along with the existing legal provisions such as mandatory disclosures, accountability of the CSR Committee and the Board, provisions for statutory audit of accounts of the company etc. provide sufficient safeguards in this regard. (c):   Whenever any violation of CSR provisions is reported, action against such noncompliant  Companies  are  initiated  as  per  provisions  of  the  Act  after  due examination of records and following due process of law. All CSR related defaults are  compoundable.    So  far,  sanction  for  prosecution  has  been  accorded  in  366 cases. Of these, 148 applications for compounding have been made and 75 cases have been compounded.  Further, the non-compliance of CSR provisions have been made civil wrong w. e. f. 22 nd  January, 2021.

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Annexure ANNEXURE REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 192 FOR 02.08.2021

| STATE/UT-WISE CSR EXPENDITURE DETAILS (IN RS. CRORE)   | STATE/UT-WISE CSR EXPENDITURE DETAILS (IN RS. CRORE)   | STATE/UT-WISE CSR EXPENDITURE DETAILS (IN RS. CRORE)   | STATE/UT-WISE CSR EXPENDITURE DETAILS (IN RS. CRORE)   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| States/UT                                              | Amount Spent FY 2017-18                                | Amount Spent FY 2018-19                                | Amount Spent FY 2019-20                                |
| Andaman And Nicobar                                    | 0.76                                                   | 0.43                                                   | 0.68                                                   |
| Andhra Pradesh                                         | 275.28                                                 | 644.83                                                 | 679.19                                                 |
| Arunachal Pradesh                                      | 12.13                                                  | 24.50                                                  | 16.83                                                  |
| Assam                                                  | 86.23                                                  | 206.01                                                 | 752.73                                                 |
| Bihar                                                  | 47.49                                                  | 136.47                                                 | 138.15                                                 |
| Chandigarh                                             | 20.51                                                  | 11.72                                                  | 14.24                                                  |
| Chhattisgarh                                           | 71.79                                                  | 146.66                                                 | 156.64                                                 |
| Dadra And Nagar Haveli                                 | 6.93                                                   | 13.48                                                  | 18.92                                                  |
| Daman And Diu                                          | 20.09                                                  | 6.23                                                   | 8.60                                                   |
| Delhi                                                  | 558.33                                                 | 674.17                                                 | 643.99                                                 |
| Goa                                                    | 53.34                                                  | 46.74                                                  | 43.71                                                  |
| Gujarat                                                | 775.90                                                 | 1,065.90                                               | 910.13                                                 |
| Haryana                                                | 266.09                                                 | 335.53                                                 | 474.43                                                 |
| Himachal Pradesh                                       | 60.60                                                  | 79.97                                                  | 76.09                                                  |
| Jammu And Kashmir                                      | 46.44                                                  | 35.34                                                  | 24.93                                                  |
| Jharkhand                                              | 45.92                                                  | 70.30                                                  | 139.04                                                 |
| Karnataka                                              | 1,034.33                                               | 1,224.92                                               | 1383.65                                                |
| Kerala                                                 | 167.24                                                 | 387.17                                                 | 250.02                                                 |
| Lakshadweep                                            | 2.07                                                   | 0.39                                                   | 1.00                                                   |
| Madhya Pradesh                                         | 147.25                                                 | 247.15                                                 | 165.47                                                 |
| Maharashtra                                            | 2,565.59                                               | 2,864.04                                               | 2,751.21                                               |
| Manipur                                                | 4.03                                                   | 7.64                                                   | 10.87                                                  |
| Meghalaya                                              | 5.49                                                   | 17.99                                                  | 17.29                                                  |
| Mizoram                                                | 0.23                                                   | 0.11                                                   | 0.25                                                   |
| Nagaland                                               | 0.36                                                   | 2.11                                                   | 1.64                                                   |
| Odisha                                                 | 472.58                                                 | 682.87                                                 | 679.43                                                 |
| Puducherry                                             | 6.53                                                   | 8.30                                                   | 8.63                                                   |
| Punjab                                                 | 89.32                                                  | 164.58                                                 | 176.06                                                 |
| Rajasthan                                              | 263.83                                                 | 549.02                                                 | 696.77                                                 |
| Sikkim                                                 | 6.84                                                   | 4.58                                                   | 3.94                                                   |
| Tamil Nadu                                             | 627.75                                                 | 829.27                                                 | 919.05                                                 |
| Telangana                                              | 293.53                                                 | 422.39                                                 | 404.97                                                 |
| Tripura                                                | 1.83                                                   | 23.06                                                  | 4.34                                                   |
| Uttar Pradesh                                          | 302.92                                                 | 479.88                                                 | 496.13                                                 |
| Uttarakhand                                            | 86.65                                                  | 173.32                                                 | 105.34                                                 |
| West Bengal                                            | 299.77                                                 | 369.50                                                 | 390.51                                                 |
| NEC/ Not mentioned                                     | 132.04                                                 | 3.68                                                   | 3.42                                                   |
| PAN India*                                             | 5,050.79                                               | 6,767.74                                               | 8,662.86                                               |
| Grand Total (in Cr.)                                   | 13,908.79                                              | 18,728.01                                              | 21,231.15                                              |

(Data upto 31.03.2021) [Source: National CSR Data Portal]

*Companies either did not specify the names of States or indicated more than one State where projects were undertaken.

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