Lok Sabha Question No. 1914 (UNSTARRED), answered on 2022-03-14
Subject: CSR Compliance by Companies in Madhya Pradesh
Ministry: CORPORATE AFFAIRS
Asked by: Anil Firojiya

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 1914

ANSWERED ON MONDAY, MARCH 14, 2022/

PHALGUNA 23, 1943 (SAKA)

## CSR COMPLIANCE BY COMPANIES IN MADHYA PRADESH

## QUESTION

1914.  SHRI ANIL FIROJIYA:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether all companies are complying with the Section 135 of the companies Act related to Corporate Social Responsibility (CSR) and giving preference to development of local areas;
- (b)
- if so, the details thereof, State-wise;
- (c) if not, the district-wise details of the companies in Madhya Pradesh which are not complying;
- (d) whether the Government has taken action against the companies which are not complying with the CSR rules, if so, the details thereof; and
- (e) whether  the  Government  is  formulating  new  measures  to  ensure  its 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) to (c):   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.

- (d):    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.
- (e):    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 was 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. 1914 FOR 14.03.2022

| 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                                                                                       | Amount Spent FY 2016-17                                                                         | Amount Spent FY 2017-18                                                                         | Amount Spent FY 2018-19                                                                         | Amount Spent FY 2019-20                                                                         | Amount Spent FY 2020-21                                                                         | Total Amount                                                                                    |
| 1                                                                                               | Andaman And Nicobar                                                                             | 0.83                                                                                            | 0.76                                                                                            | 0.82                                                                                            | 1.29                                                                                            | 2.26                                                                                            | 5.95                                                                                            |
| 2                                                                                               | Andhra Pradesh                                                                                  | 753.53                                                                                          | 578.22                                                                                          | 668.72                                                                                          | 720.62                                                                                          | 588.67                                                                                          | 3,309.76                                                                                        |
| 3                                                                                               | Arunachal Pradesh                                                                               | 24.05                                                                                           | 12.23                                                                                           | 24.56                                                                                           | 18.02                                                                                           | 6.42                                                                                            | 85.29                                                                                           |
| 4                                                                                               | Assam                                                                                           | 269.92                                                                                          | 213.59                                                                                          | 210.22                                                                                          | 288.49                                                                                          | 160.78                                                                                          | 1,143.00                                                                                        |
| 5                                                                                               | Bihar                                                                                           | 100.81                                                                                          | 107.72                                                                                          | 140.14                                                                                          | 144.16                                                                                          | 56.29                                                                                           | 549.13                                                                                          |
| 6                                                                                               | Chandigarh                                                                                      | 21.99                                                                                           | 20.55                                                                                           | 11.95                                                                                           | 15.72                                                                                           | 7.20                                                                                            | 77.41                                                                                           |
| 7                                                                                               | Chhattisgarh                                                                                    | 84.94                                                                                           | 176.94                                                                                          | 150.30                                                                                          | 261.61                                                                                          | 283.14                                                                                          | 956.94                                                                                          |
| 8                                                                                               | Dadra And Nagar Haveli                                                                          | 7.58                                                                                            | 7.04                                                                                            | 13.48                                                                                           | 19.12                                                                                           | 7.02                                                                                            | 54.23                                                                                           |
| 9                                                                                               | Daman And Diu                                                                                   | 2.63                                                                                            | 20.23                                                                                           | 6.25                                                                                            | 9.69                                                                                            | 3.13                                                                                            | 41.93                                                                                           |
| 10                                                                                              | Delhi                                                                                           | 521.16                                                                                          | 637.88                                                                                          | 815.20                                                                                          | 936.04                                                                                          | 839.65                                                                                          | 3,749.93                                                                                        |
| 11                                                                                              | Goa                                                                                             | 37.89                                                                                           | 55.94                                                                                           | 49.46                                                                                           | 48.53                                                                                           | 32.53                                                                                           | 224.34                                                                                          |
| 12                                                                                              | Gujarat                                                                                         | 870.84                                                                                          | 983.77                                                                                          | 1,091.79                                                                                        | 995.60                                                                                          | 1,168.19                                                                                        | 5,110.19                                                                                        |
| 13                                                                                              | Haryana                                                                                         | 390.07                                                                                          | 369.84                                                                                          | 381.41                                                                                          | 528.81                                                                                          | 398.45                                                                                          | 2,068.58                                                                                        |
| 14                                                                                              | Himachal Pradesh                                                                                | 24.03                                                                                           | 69.98                                                                                           | 81.25                                                                                           | 82.10                                                                                           | 98.59                                                                                           | 355.94                                                                                          |
| 15                                                                                              | Jammu And Kashmir                                                                               | 42.84                                                                                           | 51.76                                                                                           | 36.55                                                                                           | 25.54                                                                                           | 33.82                                                                                           | 190.51                                                                                          |
| 16                                                                                              | Jharkhand                                                                                       | 95.69                                                                                           | 110.18                                                                                          | 112.35                                                                                          | 156.52                                                                                          | 188.35                                                                                          | 663.10                                                                                          |
| 17                                                                                              | Karnataka                                                                                       | 887.68                                                                                          | 1,161.68                                                                                        | 1,280.24                                                                                        | 1,483.54                                                                                        | 966.62                                                                                          | 5,779.77                                                                                        |
| 18                                                                                              | Kerala                                                                                          | 135.47                                                                                          | 227.21                                                                                          | 444.12                                                                                          | 305.04                                                                                          | 321.10                                                                                          | 1,432.94                                                                                        |
| 19                                                                                              | Lakshadweep                                                                                     | -                                                                                               | 3.27                                                                                            | 0.39                                                                                            | 1.00                                                                                            | -                                                                                               | 4.66                                                                                            |
| 20                                                                                              | Madhya Pradesh                                                                                  | 290.60                                                                                          | 166.39                                                                                          | 255.84                                                                                          | 216.48                                                                                          | 273.88                                                                                          | 1,203.19                                                                                        |
| 21                                                                                              | Maharashtra                                                                                     | 2,492.11                                                                                        | 2,833.41                                                                                        | 3,206.84                                                                                        | 3,426.79                                                                                        | 2,646.46                                                                                        | 14,605.62                                                                                       |
| 22                                                                                              | Manipur                                                                                         | 12.35                                                                                           | 4.81                                                                                            | 7.81                                                                                            | 14.21                                                                                           | 6.28                                                                                            | 45.46                                                                                           |
| 23                                                                                              | Meghalaya                                                                                       | 10.97                                                                                           | 13.20                                                                                           | 18.12                                                                                           | 19.74                                                                                           | 8.71                                                                                            | 70.74                                                                                           |
| 24                                                                                              | Mizoram                                                                                         | 0.08                                                                                            | 1.48                                                                                            | 0.11                                                                                            | 0.25                                                                                            | 0.49                                                                                            | 2.41                                                                                            |
| 25                                                                                              | Nagaland                                                                                        | 0.92                                                                                            | 1.81                                                                                            | 2.14                                                                                            | 5.10                                                                                            | 2.98                                                                                            | 12.96                                                                                           |
| 26                                                                                              | Odisha                                                                                          | 316.73                                                                                          | 505.62                                                                                          | 690.77                                                                                          | 752.43                                                                                          | 495.72                                                                                          | 2,761.26                                                                                        |
| 27                                                                                              | Puducherry                                                                                      | 7.43                                                                                            | 6.63                                                                                            | 9.15                                                                                            | 11.40                                                                                           | 10.44                                                                                           | 45.04                                                                                           |
| 28                                                                                              | Punjab                                                                                          | 75.83                                                                                           | 114.11                                                                                          | 167.86                                                                                          | 192.05                                                                                          | 95.16                                                                                           | 645.01                                                                                          |
| 29                                                                                              | Rajasthan                                                                                       | 327.05                                                                                          | 445.20                                                                                          | 603.84                                                                                          | 735.05                                                                                          | 454.08                                                                                          | 2,565.22                                                                                        |
| 30                                                                                              | Sikkim                                                                                          | 6.83                                                                                            | 7.46                                                                                            | 5.87                                                                                            | 12.72                                                                                           | 13.85                                                                                           | 46.73                                                                                           |
| 31                                                                                              | Tamil Nadu                                                                                      | 550.94                                                                                          | 687.96                                                                                          | 900.36                                                                                          | 1,110.15                                                                                        | 749.03                                                                                          | 3,998.44                                                                                        |
| 32                                                                                              | Telangana                                                                                       | 259.88                                                                                          | 385.48                                                                                          | 440.07                                                                                          | 451.92                                                                                          | 343.38                                                                                          | 1,880.73                                                                                        |
| 33                                                                                              | Tripura                                                                                         | 1.25                                                                                            | 1.88                                                                                            | 23.06                                                                                           | 9.40                                                                                            | 8.20                                                                                            | 43.79                                                                                           |
| 34                                                                                              | Uttar Pradesh                                                                                   | 328.31                                                                                          | 442.30                                                                                          | 524.46                                                                                          | 584.59                                                                                          | 680.24                                                                                          | 2,559.90                                                                                        |
| 35                                                                                              | Uttarakhand                                                                                     | 102.52                                                                                          | 86.47                                                                                           | 178.19                                                                                          | 128.64                                                                                          | 113.10                                                                                          | 608.93                                                                                          |
| 36                                                                                              | West Bengal                                                                                     | 290.35                                                                                          | 360.45                                                                                          | 386.69                                                                                          | 454.87                                                                                          | 316.98                                                                                          | 1,809.34                                                                                        |
| 37                                                                                              | NEC/Not Mentioned*                                                                              | 7.63                                                                                            | 153.27                                                                                          | 4.74                                                                                            | 31.66                                                                                           | 176.71                                                                                          | 374.01                                                                                          |
| 38                                                                                              | PAN India*                                                                                      | 4,990.68                                                                                        | 6,070.93                                                                                        | 7,218.07                                                                                        |                                                                                                 | 8,802.30                                                                                        | 37,746.94                                                                                       |
|                                                                                                 | Grand Total (in Cr.)                                                                            | 14,344.40                                                                                       | 17,097.66                                                                                       | 20,163.18                                                                                       | 10,664.97 24,863.84                                                                             | 20,360.25**                                                                                     | 96,829.32                                                                                       |

(Data up to 31.12.2021)  [Source: National CSR Data Portal]

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

** Data for FY 2020-21 is subject to change as the levy of additional fees for the late filing has been relaxed till 15.03.2022.

******