Thursday, October 6, 2022

CSR violation: sanction for prosecution given in 366 cases

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New Delhi: The sanction for prosecution in violation of Corporate Social Responsibility (CSR) provisions has been accorded in 366 cases besides 121 applications for compounding have been made and 37 cases have been compounded. All CSR violations are compoundable if the offence is proved. This information was given in parliament by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question on Monday.

Thakur further stated that whenever any CSR violation is reported, action against such non-compliant companies is initiated as per provisions of the Companies Act, 2013 after due examination of records following due process of law. CSR is a Board driven process and the board of the company is empowered to plan, decide, execute and monitor the CSR activities of the company based on the recommendation of its CSR Committee.

“Whenever any CSR violation is reported, action against such non-compliant companies is initiated as per provisions of the Companies Act, 2013 after due examination of records following due process of law. All CSR violations are compoundable…”- Anurag Singh Thakur, MoS Finance & Corporate Affairs

The Schedule-7 of the act enlists the activities which may be included by companies in their CSR policy. The entire CSR architecture is disclosure-based and CSR mandated companies are required to file details of CSR initiatives annually in MCA21 registry. The High-Level Committee on Corporate Social Responsibility (HLC-2018) submitted its report to the government on August 7, 2019. The report is available on the ministry’s website at www.mca.gov.in The recommendations of HLC-2018 is under consideration of the Ministry.

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