Lok Sabha Question No. 2274 (UNSTARRED), answered on 2015-12-11
Subject: Irregularities under CSR
Ministry: CORPORATE AFFAIRS
Asked by: NISHIKANT  DUBEY, SUSHIL KUMAR SINGH, YERRAM VENKATA SUBBAREDDY, ARJUN RAM  MEGHWAL, VISHNU DAYAL RAM, P.P. CHAUDHARY, SUNIL KUMAR SINGH, DILIP KUMAR MANSUKHLAL GANDHI, S.P. MUDDAHANUMEGOWDA, SRIRAM MALYADRI, KOTHA PRABHAKAR REDDY, SISIR KUMAR ADHIKARI, M. B. RAJESH

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2274 ANSWERED ON FRIDAY THE 11TH DECEMBER, 2015/ AGRAHAYANA 20, 1937(SAKA)

## IRREGULARITIES UNDER CSR

## QUESTION

## 2274. SHRI NISHIKANT DUBEY:

SHRI SUSHIL KUMAR SINGH:

SHRI Y.V. SUBBA REDDY:

SHRI ARJUN MEGHWAL:

SHRI VISHNU DAYAL RAM:

SHRI P.P. CHAUDHARY:

SHRI SUNIL KUMAR SINGH:

SHRI DILIPKUMAR MANSUKHLAL GANDHI:

SHRI S.P. MUDDAHANUME GOWDA:

SHRI MALYADRI SRIRAM:

SHRI PRABHAKAR REDDY KOTHA:

SHRI SISIR KUMAR ADHIKARI:

SHRI M.B. RAJESH:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)  whether the Government is aware that many of the companies including Public Sector Undertakings (PSUs) are not spending two percent of their total profit on welfare activities under the Corporate Social Responsibility (CSR) and the Companies Act, 2013;
- (b)  if so, the details thereof and the action taken by the Government against such  companies  during  each  of  the  last  three  years  and  the  current  year, companies and State/UT-wise;
- (c)  whether a number of complaints regarding misuse of funds by companies/ PSUs under the CSR have been received by the Government, if so, the details thereof and the action taken thereon, company-wise;
- (d)  whether the Company Act does not have any provisions for defaulters who failed to comply with CSR provisions, if so, the manner in which the Government takes action against such companies; and

Contd….2/-

- (e)  whether  the  Government  has  constituted/proposes  to  constitute  any monitoring authority in order to regulate and monitor the activities of CSR, if so, the details thereof?

## ANSWER

## THE MINISTER OF CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

(SHRI ARUN JAITLEY)

(श्री अरुण जेटली)

- (a)  and  (b):  The  provisions  of  Corporate  Social  Responsibility  (CSR)  under Section 135 of the Companies Act, 2013 and rules made thereunder have come into force with effect from  01.04.2014. The year 2014-15 was the first year of implementation of CSR policies by companies under the legislation.  The Board of  the  company,  eligible  to  comply  with  the  CSR  provisions  of  the  Act,  is mandated  to  make  annual  disclosure  on  CSR  in  the  Board's  report.  The companies  are  still  in  the  process  of  filing  their  Annual  Reports  with  the Ministry.  Details of companies complying with CSR provisions of the Act for the financial year 2014-15, are expected to be available after requisite filings are made by companies.
- (c): The Ministry of Corporate Affairs has not received any specific complaint regarding misuse of CSR funds by companies. Further, Department of Public Enterprises have informed that no complaints regarding misuse of funds by Central Public Sector Enterprises have come to their notice.
- (d): The provisions for non-compliance of Section 135 of the Act are prescribed under Section 134 (8) of the Act.

(e): No, Madam.

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