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Home Corporate Social Responsibility

Bombay High Court Orders Removal of Posts Claiming Malabar Gold’s CSR Scholarships Are Only for Muslim Girls

This incident shows the challenges companies face in defending their CSR reputation against social media misinformation and the judiciary's role in maintaining corporate integrity.

India CSR by India CSR
May 13, 2024
in Corporate Social Responsibility
Reading Time: 5 mins read
Bombay High Court

Bombay High Court

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The court has ordered the removal of social media posts falsely alleging that Malabar Gold’s CSR initiatives are exclusively for Muslim girls, safeguarding the company’s inclusive policies.

MUMBAI (India CSR): The Bombay High Court has provided interim relief to Malabar Gold Limited by directing the removal of defamatory social media posts that misrepresent the company’s commitment to corporate social responsibility (CSR). These posts inaccurately claimed that the company’s scholarship programs were solely for Muslim girls, prompting legal action to protect Malabar Gold’s reputation and emphasize its community-wide support.

Judicial Intervention

Justice Bharati Dangre took a firm stand in the proceedings, ordering the cessation of prima facie defamatory content that posed a threat to communal harmony and the company’s goodwill. This legal action highlights the court’s proactive stance against misinformation that undermines social and corporate ethics.

Case Details

The lawsuit initiated by Malabar Gold targeted three individuals—Kajal Shingala, Murali Iyengar, and Shefali Vaidya—for their roles in spreading false and divisive messages across social media platforms like Twitter, Facebook, and Instagram. These messages distorted the true nature of Malabar Gold’s CSR endeavors, which aim to empower underprivileged girls across various communities.

Misrepresentation and Misinformation

The dispute centered around a misleading portrayal by defendant Kajal Shingala, who posted a photo from a scholarship event, selectively showing Muslim recipients. This post sparked controversy by suggesting a biased allocation of CSR resources, contrary to Malabar Gold’s inclusive policies.

The defendants allegedly posted derogatory comments and communal remarks on platforms like Twitter, Facebook, and Instagram, insinuating favouritism based on religion in Malabar Gold’s philanthropic activities.

According to the plea, Kajal Shingala, identified as Defendant No.1, purportedly singled out a photograph from the plaintiff’s scholarship distribution event, highlighting girls from the Muslim community, and proceeded to make disparaging remarks on various social media platforms. Co-defendants Murali Iyengar and Shefali Vaidya echoed these sentiments on Twitter (now “X”) but removed their posts upon notice from the plaintiff.

Shingala’s post read:

“Who buys more gold and silver – Hindus. Who earns more from Malabar – Hindus. By earning from Hindus, who is giving scholarships with the same money – to Muslims. Where the owner of the company is Mu-Salman, Mu-Salman also benefits from earnings. It’s different that he earns from Hindus. But look at our Hindu industrialist, secular worms have been bitten that they do not see religion while giving scholarships with their earnings, so this is the condition of Hindus. #BoycottMalabar”

Malabar Gold argued that by dissemination of such statements, the defendants had attempted to tarnish the company’s image through the campaign labeled as “#BoycottMalabar.”

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The court noted…

The court noted that while Kajal Shingala,“may carry her own opinion on an issue, but by uploading only one particular photograph out of the entire stack of photographs clicked, when the scholarships were conferred upon the girl child across wide spectrum, without verifying the veracity of post, definitely would cause harm to the secular societal structure of the country and in particular when the post prima facie is baseless.”

Specifically, the court criticised Shingala, for selectively choosing one photograph from a series depicting Malabar Gold’s scholarship distribution event. This act, the court remarked, misrepresented the company’s commendable initiative of providing scholarships to girls from various backgrounds.

Moreover, the court highlighted that the CSR activities of Malabar Gold are carried out in compliance with relevant laws and regulations. However, the dissemination of false information by the defendant on various social media platforms, as highlighted by Malabar Gold, was deemed as an intentional effort to harm the company’s reputation.

“Such post definitely has the effect of damaging the reputation and goodwill of the Plaintiff. Various unknown people and third parties are re-posting the same and this has the potential to create a divide in this united country, which definitely is not in the interest of the citizens of this country,” the court said.

Recognising the urgency of the situation and the potential irreparable damage to Malabar Gold’s reputation, the court issued directives against Shingala, ordering her to immediately remove the defamatory statement from her Twitter handle. She was further restrained from issuing further defamatory statements against Malabar Gold or its associates.

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Take down defamatory content...

Additionally, the court directed social media platforms, including Facebook, Twitter, and Instagram, along with META Platforms Inc., to take down any comments or posts related to the defamatory content.

Corporate and Legal Reactions

The company responded robustly to these accusations, underscoring the diversity of its scholarship beneficiaries. “Our CSR initiatives are designed to benefit all segments of society, without any discrimination based on religion or background,” explained a company representative. The court reiterated this perspective, condemning any attempts to sow division through baseless allegations.

Future Directions

The court’s directives include not only the removal of the specific defamatory posts but also a broader enforcement for social media platforms to actively monitor and prevent the spread of similar content. Further legal proceedings are scheduled for July 8, 2024, to ensure compliance and discuss ongoing concerns.

(India CSR)

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