Lok Sabha Question No. 3269 (UNSTARRED), answered on 2021-08-09
Subject: Violation of CSR Provision
Ministry: FINANCE
Asked by: Manoj Kumar Tiwari, Subrata Pathak, Sudheer Gupta, Ravindra Kushawaha, Ravi Kishan Shukla, Prataprao  Jadhav, Sanjay Sadashivrao Mandlik, Shrirang Appa Barne, Chandra Sekhar Sahu, Bidyut Baran Mahato

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3269 TO BE ANSWERED ON MONDAY, 9thAUGUST, 2021/ SRAVANA 18, 1943 (SAKA)

## VIOLATION OF CSR PROVISION

## QUESTION

3269. SHRI MANOJ TIWARI:

SHRI SUBRAT PATHAK:

SHRI SUDHEER GUPTA:

SHRI RAVINDRA KUSHWAHA:

SHRI RAVI KISHAN

SHRI PRATAPRAO JADHAV

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI SHRIRANG APPA BARNE:

SHRI CHANDRA SEKHAR SAHU:

SHRI BIDYUT BARAN MAHATO:

Will the Minister of Finance be pleased to state:

- (a) whether the existing legal provisions such as mandatory disclosures; accountability of the Social Responsibility (CSR) Committee and the Board, provisions for statutory audit Corporate of accounts of the company etc. sufficient safeguards for utilization of funds; provide
- (c) the details of the CSR funds available and utilised by each of the Central Public Sector Undertakings(CPSUs) for the fiscal year 2020-21;
- (b) if so, the number of cases of violation of CSR provisions reported along with the action against such Companies initiated as per provisions of the Act after due examination of records and following due process of law;
- (d) the details of utilisation of the CSR funds of CPSUs for the fiscal year 2020-21, State-wise;
- whether any effective measures have been taken regarding the funds being spent particularly for hilly areas of the country under the CSR?
- e) the priority areas for which the CSR funds assistance have been considered and utilised;

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) & (b): Corporate Social Responsibility (CSR) activities of corporates are governed aS per Section 135 of Companies Act; 2013 (Act ), Companies (CSR Policy) Rules made there under; and the Schedule-VI of the Act as notified by Ministry of Corporate Affairs  from time to

time The CSR architecture is disclosure based and CSR mandated file details of CSR activities companies are required to annually in the MCA2I registry. Whenever any violation of CSR provisions is  reported, action  against such  non-compliant provisions of the Companies are initiated Companies Act; 2013 after due examination of records and following duc process of law. So sanction for prosecution has been accorded in 366 cases. Of these, 148 applications for compounding have been made and 75 cases have been the non-compliance of CSR provisions have been made civil compounded. Further, wrong W\_ e 2021 . far, 22nd January,

(c) & (d): AIl data related to CSR filed by companies in MCA2I wise & state-wise, is available in public domain registry; including companyat WWW CSL\_gOv in: As per the companies are required to hold Annual   General (AGM) within   Six financial year: Thereafter;  financial statements and board report containing disclosure about are to be filed in MCA2I within 30 of the AGM. Thus, Financial the CSR data for the Year 2020-21 is not available. Act, Meeting CSR, days

- (e) & (f): Schedule VII of the Act indicates the activities that be can undertaken as CSR and broadly relates to health, sanitation; education; environment; sports, rural art and culture, development slum area development; disaster management, setting up old age homes; care centers, measures for Teducing inequalities faced by socially and economically backward groups etc. Under the company is empowered to plan; decide, execute and monitor CSR activities based on the recommendation of its CSR Committee. The Government does not issue any direction to spend in any specific geographical area or activity: heritage, day Act,

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