Ministry of Corporate Affairs issues ‘preliminary notices’ to 272 cos for non-compliance with CSR norms

0
308
CopyRight@IndiaCSRNetwork

NEW DELHI: The Ministry of Corporate Affairs has issued “preliminary notices” to 272 companies for alleged non-compliance with CSR provisions under the companies law.

In a written reply to the Rajya Sabha, Minister of State for Corporate Affairs P P Chaudhary said that whenever violation of CSR provision is reported, the Registrar of Companies takes action after due examination of records.

Under the Companies Act, 2013, certain class of entities are required to spend at least two per cent of their three-year average net profit towards Corporate Social Responsibility (CSR) activities.

“The ministry has established Centralised Scrutiny and Prosecution Mechanism (CSPM) in April, 2018 for the financial year 2015-16 onwards on pilot basis for enforcement of CSR provisions.

“CSPM has been tasked to start with examination of records of top 1,000 companies mandated to spend on CSR. Based on inquiry, preliminary notices have been issued to 272 companies,” Chaudhary said.

According to him, for the 2014-15 fiscal, the ministry sanctioned prosecution against 254 companies and out of them, 33 firms filed applications for compounding.

Generally, compounding refers to paying an amount in lieu of prosecution proceedings.

In another written reply, the minister said the Companies Act is administered through a mechanism of inquiries, inspections, investigations and prosecution.

“These are carried out with due examination of the company’s documents filed on MCA registry, books of account and other records… by following due procedure of law.

“Hence, there is no blind application of provisions of the Act,” he noted. (PTI)

Disclaimer: The views expressed in this feature are entirely their own and does not necessarily reflect the views of India CSR Network and its Editor.

Terms & Conditions: India CSR Network does not permit other Websites/Agency to copy or reproduce or reprint the above article/feature in any form or means.

Please follow and like us:

Comments

comments

SHARE
Previous articlePSU firms spent bulk of CSR funds in Gujarat, UP, AP, Odisha, Chhattisgarh: CAG
Next articleSEWA-THDC Distributed Utility Items amongst Stakeholders
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in