Lok Sabha Question No. 81 (UNSTARRED), answered on 2022-07-18
Subject: CSR Compliance for Priority Spending
Ministry: CORPORATE AFFAIRS
Asked by: Sangamlal Kadedin Gupta, P.P. Chaudhary, Diya Kumari, Brijbhushan Sharan Singh, Ranjeetsingh Naik Nimbalkar

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 81

ANSWERED ON MONDAY, JULY 18, 2022/

ASHADHA 27, 1944 (SAKA)

CSR COMPLIANCE FOR PRIORITY SPENDING

## QUESTION

81.    SHRI SANGAM LAL GUPTA:

SHRI P.P. CHAUDHARY:

MS. DIYA KUMARI:

SHRI BRIJBHUSHAN SHARAN SINGH:

SHRI RANJEETSINGH HINDURAO NAIK NIMBALKAR:

Will the Minister of CORPORATE AFFAIRS  be pleased to state:

- (a) whether all the companies are complying with section 135 of the Companies Act dealing with Corporate Social Responsibility (CSR) and giving priority to local areas, if so, the details thereof, State-wise;
- (b)  if  not,  the  details  of  the  non-compliant  companies  for  the  State  of  Uttar Pradesh, district-wise;
- (c) whether the Government has taken actions against non-compliant companies and if so, the details thereof; and
- (d) whether the Government is formulating new measures to ensure compliance and if so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF  STATE  (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

## [RAO INDERJIT SINGH]

(a) & (b):   The broad framework for Corporate Social Responsibility (CSR) has been provided under Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. The first proviso to Section 135 (5) of the Act provides that the company shall give preference to the local area and areas around it where it operates.  However, the emphasis on local area is only directory and not mandatory in nature and companies need to balance local area preference with national priorities. The same has also been clarified through Frequently  Asked  Questions  (FAQs)  on  CSR  issued  vide  General  Circular  no. 14/2021 dated 25.08.2021. 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 recommendations of its CSR committee.

All data related to CSR filed by companies in MCA21 registry is available in public domain at www.csr.gov.in.  On the basis of the filings made by the companies in the MCA 21 registry, details of CSR funds spent by the companies, in different States  /Union  Territories  (UTs)  for  financial  years  2016-17  to  2020-21  is  at Annexure. Further, the companies are required to file the CSR data for the Financial Year 2021-22 on or before 31.03.2023.

(c):  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 safeguards in this regard. Whenever any violation of CSR provisions is reported, action against such non-compliant Companies is initiated as per provisions of the  Act  after  due  examination  of  records  and  following  due  process  of  law. Earlier, CSR related defaults were compoundable offences. So far, sanction for prosecution  has  been  accorded  in  366  cases.  Of  these,  155  applications  for compounding have been made and 105 cases have been compounded. Further, the non-compliance of CSR provisions has been converted as a civil wrong w. e. f. 22 nd  January, 2021.

(d):    Section  135  of  the  Act  was  amended vide Companies (Amendment) Act, 2019 and Companies (Amendment) Act, 2020. These amendments provided for the  transfer  of  unspent  CSR  amount  and  made  the  non-compliance  of  CSR provisions a civil wrong w. e. f. 22nd January 2021. Further, Companies (CSR Policy) Rules, 2014 were also amended which have strengthened the CSR ecosystem by bringing more objectivity, transparency, entrusting more responsibility on the board and enhancing the disclosures by the companies.

*****

Annexure ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 81 FOR 18.07.2022

| State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   | State /UT-wise CSR expenditure (INR Cr.) for the last five financial years 2016-17 to 2020-21   |
|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| S. No                                                                                           | States/UT                                                                                       | FY 2016-17                                                                                      | FY 2017-18                                                                                      | FY 2018-19                                                                                      | FY 2019-20                                                                                      | FY 2020-21                                                                                      | Total Amount                                                                                    |
| 1                                                                                               | Andaman And Nicobar                                                                             | 0.63                                                                                            | 0.73                                                                                            | 0.82                                                                                            | 1.29                                                                                            | 2.19                                                                                            | 5.65                                                                                            |
| 2                                                                                               | Andhra Pradesh                                                                                  | 741.52                                                                                          | 575.07                                                                                          | 664.87                                                                                          | 710.00                                                                                          | 662.39                                                                                          | 3,353.85                                                                                        |
| 3                                                                                               | Arunachal Pradesh                                                                               | 24.05                                                                                           | 11.91                                                                                           | 24.56                                                                                           | 18.02                                                                                           | 10.58                                                                                           | 89.13                                                                                           |
| 4                                                                                               | Assam                                                                                           | 256.92                                                                                          | 211.33                                                                                          | 210.00                                                                                          | 282.14                                                                                          | 163.21                                                                                          | 1,123.59                                                                                        |
| 5                                                                                               | Bihar                                                                                           | 100.62                                                                                          | 106.17                                                                                          | 137.57                                                                                          | 110.15                                                                                          | 78.02                                                                                           | 532.53                                                                                          |
| 6                                                                                               | Chandigarh                                                                                      | 21.96                                                                                           | 20.51                                                                                           | 11.46                                                                                           | 15.58                                                                                           | 13.12                                                                                           | 82.62                                                                                           |
| 7                                                                                               | Chhattisgarh                                                                                    | 84.66                                                                                           | 176.70                                                                                          | 149.35                                                                                          | 268.18                                                                                          | 305.73                                                                                          | 984.63                                                                                          |
| 8                                                                                               | Dadra And Nagar Haveli                                                                          | 7.37                                                                                            | 6.98                                                                                            | 13.48                                                                                           | 18.34                                                                                           | 18.08                                                                                           | 64.25                                                                                           |
| 9                                                                                               | Daman And Diu                                                                                   | 2.63                                                                                            | 20.23                                                                                           | 6.25                                                                                            | 9.53                                                                                            | 5.25                                                                                            | 43.90                                                                                           |
| 10                                                                                              | Delhi                                                                                           | 460.25                                                                                          | 579.37                                                                                          | 749.24                                                                                          | 827.74                                                                                          | 657.73                                                                                          | 3,274.33                                                                                        |
| 11                                                                                              | Goa                                                                                             | 33.28                                                                                           | 53.77                                                                                           | 46.77                                                                                           | 43.86                                                                                           | 40.95                                                                                           | 218.63                                                                                          |
| 12                                                                                              | Gujarat                                                                                         | 864.83                                                                                          | 967.97                                                                                          | 1,082.09                                                                                        | 982.53                                                                                          | 1,397.26                                                                                        | 5,294.69                                                                                        |
| 13                                                                                              | Haryana                                                                                         | 386.17                                                                                          | 363.43                                                                                          | 377.53                                                                                          | 521.11                                                                                          | 536.86                                                                                          | 2,185.09                                                                                        |
| 14                                                                                              | Himachal Pradesh                                                                                | 22.83                                                                                           | 69.23                                                                                           | 78.79                                                                                           | 78.61                                                                                           | 104.60                                                                                          | 354.05                                                                                          |
| 15                                                                                              | Jammu And Kashmir                                                                               | 42.65                                                                                           | 50.77                                                                                           | 36.44                                                                                           | 25.27                                                                                           | 35.10                                                                                           | 190.23                                                                                          |
| 16                                                                                              | Jharkhand                                                                                       | 95.49                                                                                           | 109.23                                                                                          | 109.80                                                                                          | 155.21                                                                                          | 208.34                                                                                          | 678.08                                                                                          |
| 17                                                                                              | Karnataka                                                                                       | 875.38                                                                                          | 1,145.42                                                                                        | 1,250.39                                                                                        | 1,445.80                                                                                        | 1,205.23                                                                                        | 5,922.21                                                                                        |
| 18                                                                                              | Kerala                                                                                          | 133.82                                                                                          | 219.71                                                                                          | 354.67                                                                                          | 295.78                                                                                          | 283.78                                                                                          | 1,287.76                                                                                        |
| 19                                                                                              | Lakshadweep                                                                                     | -                                                                                               | 2.27                                                                                            | 0.39                                                                                            |                                                                                                 | 0.01                                                                                            | 2.67                                                                                            |
| 20                                                                                              | Madhya Pradesh                                                                                  | 161.11                                                                                          | 163.92                                                                                          | 243.17                                                                                          | 215.06                                                                                          | 344.13                                                                                          | 1,127.39                                                                                        |
| 21                                                                                              | Maharashtra                                                                                     | 2,414.80                                                                                        | 2,797.53                                                                                        | 3,144.23                                                                                        | 3,336.14                                                                                        | 3,306.72                                                                                        | 14,999.41                                                                                       |
| 22                                                                                              | Manipur                                                                                         | 12.35                                                                                           | 4.81                                                                                            | 7.81                                                                                            | 14.21                                                                                           | 9.66                                                                                            | 48.84                                                                                           |
| 23                                                                                              | Meghalaya                                                                                       | 9.75                                                                                            | 11.18                                                                                           | 16.54                                                                                           | 17.65                                                                                           | 12.46                                                                                           | 67.59                                                                                           |
| 24                                                                                              | Mizoram                                                                                         | 0.08                                                                                            | 1.28                                                                                            | 0.11                                                                                            | 0.25                                                                                            | 0.81                                                                                            | 2.53                                                                                            |
| 25                                                                                              | Nagaland                                                                                        | 0.53                                                                                            | 1.81                                                                                            | 2.12                                                                                            | 5.10                                                                                            | 3.57                                                                                            | 13.13                                                                                           |
| 26                                                                                              | Odisha                                                                                          | 316.31                                                                                          | 504.22                                                                                          | 688.25                                                                                          | 714.82                                                                                          | 547.57                                                                                          | 2,771.17                                                                                        |
| 27                                                                                              | Puducherry                                                                                      | 7.43                                                                                            | 6.09                                                                                            | 9.15                                                                                            | 11.32                                                                                           | 11.79                                                                                           | 45.78                                                                                           |
| 28                                                                                              | Punjab                                                                                          | 75.05                                                                                           | 112.36                                                                                          | 166.00                                                                                          | 188.52                                                                                          | 126.01                                                                                          | 667.95                                                                                          |
| 29                                                                                              | Rajasthan                                                                                       | 324.23                                                                                          | 443.35                                                                                          | 595.44                                                                                          | 733.95                                                                                          | 643.07                                                                                          | 2,740.03                                                                                        |
| 30                                                                                              | Sikkim                                                                                          | 6.71                                                                                            | 7.00                                                                                            | 5.87                                                                                            | 10.99                                                                                           | 15.15                                                                                           | 45.72                                                                                           |
| 31                                                                                              | Tamil Nadu                                                                                      | 544.43                                                                                          | 669.65                                                                                          | 876.83                                                                                          | 1,069.45                                                                                        | 1,082.33                                                                                        | 4,242.70                                                                                        |
| 32                                                                                              | Telangana                                                                                       | 256.15                                                                                          | 380.56                                                                                          | 428.06                                                                                          | 445.56                                                                                          | 579.75                                                                                          | 2,090.08                                                                                        |
| 33                                                                                              | Tripura                                                                                         | 1.25                                                                                            | 1.88                                                                                            | 23.06                                                                                           | 9.40                                                                                            | 9.29                                                                                            | 44.88                                                                                           |
| 34                                                                                              | Uttar Pradesh                                                                                   | 321.23                                                                                          | 435.21                                                                                          | 519.14                                                                                          | 577.08                                                                                          | 826.67                                                                                          | 2,679.32                                                                                        |
| 35                                                                                              | Uttarakhand                                                                                     | 102.37                                                                                          | 85.79                                                                                           | 172.26                                                                                          | 124.65                                                                                          | 151.30                                                                                          | 636.37                                                                                          |
| 36                                                                                              | West Bengal                                                                                     | 275.68                                                                                          | 338.32                                                                                          | 381.77                                                                                          | 416.97                                                                                          | 427.44                                                                                          | 1,840.17                                                                                        |
| 37                                                                                              | NEC/ Not mentioned*                                                                             | 7.63                                                                                            | 137.93                                                                                          | 4.44                                                                                            | 30.43                                                                                           | 177.51                                                                                          | 357.94                                                                                          |
| 38                                                                                              | PAN India **                                                                                    | 4,565.50                                                                                        | 5,505.31                                                                                        | 6,428.09                                                                                        | 9,373.03                                                                                        | 7,490.84                                                                                        | 33,362.77                                                                                       |
| 39                                                                                              | Contribution to Funds included in Schedule VII of the Act                                       | 787.22                                                                                          | 799.18                                                                                          | 1,155.25                                                                                        | 1,787.89                                                                                        | 3,371.00                                                                                        | 7,900.55                                                                                        |
|                                                                                                 | Grand Total (in Cr.)                                                                            | 14,344.87                                                                                       | 17,098.18                                                                                       | 20,172.07                                                                                       | 24,891.63                                                                                       | 24,865.46                                                                                       | 101,372.20                                                                                      |

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