Lok Sabha Question No. 1994 (UNSTARRED), answered on 2023-03-13
Subject: CSR Defaulter Companies
Ministry: CORPORATE AFFAIRS
Asked by: Hasnain Masoodi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1994

ANSWERED ON MONDAY, MARCH 13, 2023/PHALGUNA 22, 1944 (SAKA)

## CSR DEFAULTER COMPANIES

## QUESTION

## 1994.  SHRI HASNAIN MASOODI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details on the total number of companies in the country legally obliged to comply with the CSR provisions under section 135 of the Companies Act, 2013;
- (b) whether the Government has established a mechanism to take action against the defaulting companies and if so, the details thereof and if not, the reasons therefor;
- (c) the details of the total number of defaulter companies of the Companies Act, 2013 for the Financial Year 2020-21, 2021-22;
- (d) whether the cement factories operating in Khrew Industrial Area of District Pulwama have complied to the CSR provisions for the Financial Year 2019-20, 2020-21 and 2021-22 and if not, the details thereof; and
- (e) whether any action has been taken against the aforesaid defaulter factories and if so, the details thereof and if not, the reasons therefor?

## 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. Section 135 of the Act mandates every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during the immediately preceding financial year, to spend at least two per cent of the average net profits of the company made over immediately preceding three financial years towards CSR as per the CSR Policy of the Company. The CSR framework is disclosure based and companies are required to file details of CSR activities annually in MCA21 registry. On the basis of annual filings made by Companies in  the MCA21 registry, the CSR spent by various public and private sector companies during the Financial Years (FY) 2019-20 and 2020-21 is given below:

| Particulars              | FY 2019-20   | FY 2020-21   |
|--------------------------|--------------|--------------|
| No. of Companies         | 22953        | 18012        |
| CSR Expenditure (In Cr.) | 24,954.78    | 25,714.65    |

(Data upto 30.09.2022 [Source: National CSR Data Portal]

Further, the companies are required to file CSR details for financial year 2021-22 on or before 31.03.2023.

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,  174 applications for compounding have been made and 121 cases have been compounded. Now, the non-compliance of CSR provisions has been converted as a civil wrong w. e. f. 22nd January, 2021.

(d) & (e):  All data related to CSR filed by companies in the MCA21 registry, including district-wise  data,  are  available  in  the  public  domain  and  can  be  accessed  at www.csr.gov.in.  Factories-wise data is not maintained by the Ministry.

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