Govt issues preliminary notices to 272 companies for not complying with CSR spending requirements
Piyush Goyal said Centralised Scrutiny and Prosecution Mechanism (CSPM) has been tasked to examine the records of top 1,000 companies obliged to spend on CSR
New Delhi: The government on Tuesday said it has issued preliminary notices to as many as 272 companies for not complying with corporate social responsibility (CSR) spending requirements under the companies law.
Under the law, certain class of profitable entities is required to shell out at least 2 percent of their average three-year annual net profit towards CSR activities in a financial year.
In case of not spending the requisite amount, the firms concerned have to provide reasons for the same.
In a written reply to Rajya Sabha, Corporate Affairs Minister Piyush Goyal said Centralised Scrutiny and Prosecution Mechanism (CSPM) has been tasked to examine the records of top 1,000 companies obliged to spend on CSR.
"Based on scrutiny, preliminary notices have been issued to 272 companies. This is a continuous process and prosecution is filed gainst companies that have not complied with CSR spend requirements and also not furnished any valid reasons for not spending or underspending," he added.
CSPM was set up by the Ministry of Corporate Affairs in April 2018 to keep a tab on entities' compliance with CSR obligations.
The Registrar of Companies initiates action against non-compliant companies after due examination of records.
"For 2014-15, prosecutions against 254 were sanctioned of which 33 companies have filed applications for compounding," the minister said.
Of 6,286 companies, as many as 2,203 firms spent more than the prescribed amount towards CSR during April-November period of 2016-17, while 3,718 companies spent less than the required amount and 346 firms did not spend any amount towards such activities.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
As Guftagoo goes off air on Rajya Sabha TV, host Irfan weighs in on its historic run and state of film journalism today
Host Irfan looks back at his nine-year-long journey on the show, the celebrities who continue to evade him, and why a Hindi show on a public broadcast channel did not become a celebrity destination in the era of public relations and corporatisation
Rethinking role of presiding officers in Lok Sabha, Rajya Sabha will lead to better functioning of Parliament
A new setup that includes the guidelines outlined below could drastically reduce the abuse of their powers by the presiding officers of both Houses of Parliament
As for the remaining two seats, analysts say that the number of Congress and Bahujan Samaj Party members is so limited that even if they get together, they are in no position to get any seat