Lok Sabha Question No. 2398 (UNSTARRED), answered on 2025-12-15
Subject: Unspent CSR funds by the Companies
Ministry: CORPORATE AFFAIRS
Asked by: Shri Kuldeep Indora, Shri Tapir Gao, Shri Richard Vanlalhmangaiha

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 2398

ANSWERED ON Monday, December 15, 2025/Agrahayana 24, 1947 (Saka)

Unspent CSR funds by the Companies

## QUESTION

2398. Shri Richard Vanlalhmangaiha:

Shri Kuldeep Indora:

Shri

Tapir

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the total CSR expenditure in the country so far during FY 2024-25 and the percentage of unspent CSR funds;
- (b)  whether  the  Government  has  taken  action  against  the  500+  companies  that  have repeatedly failed to spend mandatory CSR funds in the last three years, if so, the number of companies penalised and the total amount recovered;
- (c)  the  proposed  timeline  for  constituting  an  independent  National  CSR  Audit  and Monitoring Authority or a Joint Parliamentary Committee to examine complaints of CSR misuse or irregularities;
- (d) whether there is any proposal to allocate CSR funds directly to Members of Parliament similar to MPLADS, if so, the details thereof; and
- (e) if not, the details of guidelines issued to ensure priority for projects recommended by MPs under CSR contributions of Section-8 companies and PSUs under Companies Act, 2013?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS   AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

[SHRI HARSH MALHOTRA]

(a): The disclosures related to CSR expenditure are reported in the CSR Annual Report to be  filed  with  their  annual  filing  of  returns.  Vide  General  Circular  No.  06/2025  dated 17.10.2025,  Ministry  of  Corporate  Affairs  has  allowed  all  companies  to  complete  their annual filings pertaining to FY 2024-25 till 31st December, 2025. Therefore, companies have time to file the details related to their CSR expenditure pertaining to financial year 2024-25 upto 31 st  December, 2025.

(b): Whenever 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.  In the last three Financial Years (FY) i.e 2022-23, 2023-24 and  2024-25,  the  details  of  companies  who  have  been  penalized  and  penalty  amount imposed on them are at Annexure.

(c):  No  such  proposal  is  under  consideration,  however,  as  per  the  provisions  of  the Companies Act, 2013, the Board of the company is required to disclose the CSR Policy implemented by the company in its Board report and the Board of the company has to satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it, and the Chief Financial Officer or the person responsible for

Gao:

financial management shall certify to the effect. Further, those companies who have their websites are required to make disclosures such as composition of CSR Committee, CSR Policy  and  CSR  projects  approved  by  Board  on  their  website.  The  CSR  framework  is disclosure  based  and  expenditure  on  CSR  activities  is  required  to  be  audited  by  the statuto ry  auditors  of  the  company.  The 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.  Thus,  the  existing  framework  provides adequate mechanisms to ensure compliance, monitoring, transparency and accountability. (d)  &  (e):  No,  Sir.  Under  the  Act,  CSR  is  a  Board  driven  process  and  the  Board  of  the company is empowered to plan, decide, execute and monitor the CSR activities based on the  recommendations  of  its  CSR  Committee.  The  Government  does  not  issue  any directions to Corporates to spend in any particular area or activity.

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Annexure Annexure referred para (b) to in reply to Lok Sabha Un-Starred Question no. 2398 for

| Sr. No.   | Financial Year (FY)   |   No. of Companies penalised |   Penalty imposed (Rs. in cr.) |
|-----------|-----------------------|------------------------------|--------------------------------|
| 1.        | 2022-23               |                           06 |                           2.97 |
| 2.        | 2023-24               |                           11 |                           3.32 |
| 3.        | 2024-25               |                           13 |                          13.65 |
| Total     | Total                 |                           30 |                          19.94 |

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