Lok Sabha Question No. 527 (UNSTARRED), answered on 2023-07-24
Subject: Violation of CSR Provisions
Ministry: CORPORATE AFFAIRS
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 527 ANSWERED ON MONDAY, JULY 24, 2023 SRAVANA 2, 1945 (SAKA)

## VIOLATION OF CSR PROVISIONS

## QUESTION

## 527. MS. RAMYA HARIDAS:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the accountability of Corporate Social Responsibility (CSR) Committee and Board and audit provisions of companies provide ample safety measures for utilization
- of funds in existing legal provisions;
- (b) if so, the number of cases of violation of CSR provisions till date;
- (c) whether any action has been taken against such companies as per the provision of the Act after proper examination of records and compliance of due process of law;
- (d) if so, the details thereof;
- (e) the details of amount utilised by each Central Public Undertaking under CSR fund during the last five years; and
- (f) the details of utilisation of CSR funds during the above-said period, State-wise? 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  (d):  The  broad  framework  for  Corporate Social  Responsibility  (CSR) has  been provided through Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. 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. The CSR framework is disclosure based and expenditure on CSR activities is required to be audited by the statutory auditors of the company. Further, Ministry has notified the Companies (Auditor's Report) Order, 2020, ('CARO, 2020') applicable from FY 2021 -22 which requires auditors to state details of any unspent CSR amount. The Board of the company is also required to disclose the CSR Policy 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 adequate  mechanisms  for  monitoring the CSR  activities implemented  by  the companies.

The Government monitors the disclosures made by the companies in the MCA 21 portal. Whenever  any  violation  of  CSR  provisions  is  reported,  action  against  such  noncompliant 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, 175 applications for compounding have been made and 131 cases have  been  compounded.  Now,  the  non-compliance  of  CSR  provisions  has  been converted as a civil wrong w. e. f. 22 nd  January, 2021.

(e) & (f): 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 annual filings made by the companies in the MCA 21 registry, CSR spent by Central Public Sector Undertakings (CPSUs) for the last five financial years (FY) 2017-18 to FY 2021-22 are given below:

| Particulars                              |   FY 2017-18 |   FY 2018-19 |   FY 2019-20 |   FY 2020-21 |   FY 2021-22 |
|------------------------------------------|--------------|--------------|--------------|--------------|--------------|
| CSR Expenditure by Central PSUs (in Cr.) |      3392.03 |      3986.35 |      5023.57 |      4185.06 |         4057 |

(Data up to 31.03.2023)  [Source: Corporate Data Management Cell]

State-wise details of CSR spent by Central Public Sector Undertakings (CPSUs) for the FY 2017-18 to FY 2021-22 are at Annexure.

Further, the companies are required to file the CSR data for the FY 2022-23 on or before 31 st  March, 2024.

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Annexure

## ANNEXURE REFERRED TO IN REPLY TO PART (f) OF LOK SABHA UNSTARRED QUESTION NO. 527 FOR 24.07.2023

| State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   | State -wise summary of CSR Expenditure by Central PSUs (Amount in Crore)   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Sr. No.                                                                    | State/UT                                                                   | FY 2017-18                                                                 | FY 2018-19                                                                 | FY 2019-20                                                                 | FY 2020-21                                                                 | FY 2021-22                                                                 |
| 1                                                                          | Andaman And Nicobar                                                        | 0.20                                                                       | 0.00                                                                       | -                                                                          | 0.09                                                                       | 0.18                                                                       |
| 2                                                                          | Andhra Pradesh                                                             | 74.91                                                                      | 48.86                                                                      | 32.22                                                                      | 35.60                                                                      | 50.11                                                                      |
| 3                                                                          | Arunachal Pradesh                                                          | 2.21                                                                       | 4.02                                                                       | 6.68                                                                       | 3.54                                                                       | 11.25                                                                      |
| 4                                                                          | Assam                                                                      | 150.89                                                                     | 165.87                                                                     | 223.89                                                                     | 92.95                                                                      | 227.72                                                                     |
| 5                                                                          | Bihar                                                                      | 16.75                                                                      | 29.87                                                                      | 8.23                                                                       | 7.51                                                                       | 43.82                                                                      |
| 6                                                                          | Chandigarh                                                                 | 0.01                                                                       | 0.17                                                                       | 0.08                                                                       | -                                                                          | 0.29                                                                       |
| 7                                                                          | Chhattisgarh                                                               | 97.74                                                                      | 85.92                                                                      | 86.51                                                                      | 185.81                                                                     | 150.17                                                                     |
| 8                                                                          | Dadra And Nagar Haveli                                                     | 1.50                                                                       | 0.13                                                                       | -                                                                          | 0.44                                                                       | 0.92                                                                       |
| 9                                                                          | Daman And Diu                                                              | -                                                                          | -                                                                          | -                                                                          | -                                                                          | -                                                                          |
| 10                                                                         | Delhi                                                                      | 63.04                                                                      | 173.63                                                                     | 208.69                                                                     | 45.34                                                                      | 347.79                                                                     |
| 11                                                                         | Goa                                                                        | 2.94                                                                       | 4.39                                                                       | 4.23                                                                       | 4.54                                                                       | 4.13                                                                       |
| 12                                                                         | Gujarat                                                                    | 161.90                                                                     | 76.26                                                                      | 13.79                                                                      | 23.51                                                                      | 69.64                                                                      |
| 13                                                                         | Haryana                                                                    | 19.09                                                                      | 18.63                                                                      | 10.49                                                                      | 9.36                                                                       | 53.50                                                                      |
| 14                                                                         | Himachal Pradesh                                                           | 39.80                                                                      | 47.50                                                                      | 39.10                                                                      | 42.04                                                                      | 60.33                                                                      |
| 15                                                                         | Jammu and Kashmir                                                          | 3.36                                                                       | 7.40                                                                       | 8.12                                                                       | 21.68                                                                      | 23.83                                                                      |
| 16                                                                         | Jharkhand                                                                  | 57.69                                                                      | 59.91                                                                      | 92.14                                                                      | 94.87                                                                      | 66.73                                                                      |
| 17                                                                         | Karnataka                                                                  | 140.29                                                                     | 167.74                                                                     | 168.27                                                                     | 82.89                                                                      | 141.75                                                                     |
| 18                                                                         | Kerala                                                                     | 28.71                                                                      | 37.33                                                                      | 52.88                                                                      | 23.35                                                                      | 35.10                                                                      |
| 19                                                                         | Lakshadweep                                                                | 0.20                                                                       | -                                                                          | -                                                                          | -                                                                          | -                                                                          |
| 20                                                                         | Leh & Ladakh                                                               | -                                                                          | -                                                                          | -                                                                          | -                                                                          | 9.54                                                                       |
| 21                                                                         | Madhya Pradesh                                                             | 62.03                                                                      | 103.10                                                                     | 37.12                                                                      | 129.07                                                                     | 141.20                                                                     |
| 22                                                                         | Maharashtra                                                                | 177.96                                                                     | 96.45                                                                      | 243.45                                                                     | 210.11                                                                     | 318.07                                                                     |
| 23                                                                         | Manipur                                                                    | 0.02                                                                       | 1.49                                                                       | 4.36                                                                       | 4.10                                                                       | 8.97                                                                       |
| 24                                                                         | Meghalaya                                                                  | 5.52                                                                       | 3.95                                                                       | 9.09                                                                       | 2.00                                                                       | 1.43                                                                       |
| 25                                                                         | Mizoram                                                                    | 0.45                                                                       | 0.11                                                                       | -                                                                          | 0.02                                                                       | 5.09                                                                       |
| 26                                                                         | Nagaland                                                                   | 0.04                                                                       | 0.11                                                                       | 0.63                                                                       | 0.26                                                                       | 4.25                                                                       |
| 27                                                                         | Odisha                                                                     | 306.83                                                                     | 521.85                                                                     | 506.24                                                                     | 287.38                                                                     | 350.43                                                                     |
| 28                                                                         | Puducherry                                                                 | -                                                                          | 2.37                                                                       | -                                                                          | 0.02                                                                       | 0.86                                                                       |
| 29                                                                         | Punjab                                                                     | 1.10                                                                       | 5.53                                                                       | 1.97                                                                       | 2.36                                                                       | 6.69                                                                       |
| 30                                                                         | Rajasthan                                                                  | 13.99                                                                      | 34.17                                                                      | 9.72                                                                       | 3.06                                                                       | 41.87                                                                      |
| 31                                                                         | Sikkim                                                                     | 0.30                                                                       | 1.29                                                                       | 1.05                                                                       | 8.06                                                                       | 12.57                                                                      |
| 32                                                                         | Tamil Nadu                                                                 | 73.30                                                                      | 105.76                                                                     | 124.72                                                                     | 69.35                                                                      | 60.31                                                                      |
| 33                                                                         | Telangana                                                                  | 22.93                                                                      | 27.53                                                                      | 30.71                                                                      | 25.91                                                                      | 39.93                                                                      |
| 34                                                                         | Tripura                                                                    | -                                                                          | 20.50                                                                      | 7.17                                                                       | 5.41                                                                       | 10.43                                                                      |
| 35                                                                         | Uttar Pradesh                                                              | 99.90                                                                      | 151.59                                                                     | 74.70                                                                      | 124.75                                                                     | 211.51                                                                     |
| 36                                                                         | Uttarakhand                                                                | 20.88                                                                      | 99.21                                                                      | 54.63                                                                      | 48.83                                                                      | 81.93                                                                      |
| 37                                                                         | West Bengal                                                                | 37.51                                                                      | 40.71                                                                      | 27.75                                                                      | 59.11                                                                      | 87.24                                                                      |
| 38                                                                         | PAN India*                                                                 | 1,402.57                                                                   | 1,275.13                                                                   | 2,478.92                                                                   | 1,416.07                                                                   | 523.30                                                                     |
| 39                                                                         | Contribution to Funds included in Schedule Vii of the Act.                 | 294.84                                                                     | 567.88                                                                     | 448.44                                                                     | 947.63                                                                     | 854.12                                                                     |
| 40                                                                         | NEC/ Not mentioned*                                                        | 10.63                                                                      | -                                                                          | 7.57                                                                       | 168.04                                                                     | -                                                                          |
| Grand Total (in                                                            | Cr.)                                                                       | 3,392.03                                                                   | 3,986.35                                                                   | 5,023.57                                                                   | 4,185.06                                                                   | 4,057.00                                                                   |

(Data up to 31.03.2023)   [Source: Corporate Data Management Cell]

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

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