Govt receives 121 applications for compounding CSR-related offences

Under the companies law, certain classes of companies have to shell out at least two percent of the average net profits, made during the three immediately preceding financial years, towards Corporate Social Responsibility (CSR) activities.

Press Trust of India March 16, 2020 17:15:11 IST
Govt receives 121 applications for compounding CSR-related offences

New Delhi: The corporate affairs ministry on Monday said 121 applications for compounding CSR-related offences have been received and compounding has been done in 37 cases.

Under the companies law, certain classes of companies have to shell out at least two percent of the average net profits, made during the three immediately preceding financial years, towards Corporate Social Responsibility (CSR) activities.

Generally, compoundable offences are those which can be settled by paying certain amount of money.

Govt receives 121 applications for compounding CSRrelated offences

Thinkstock image

Minister of State for Corporate Affairs Anurag Singh Thakur also told the Lok Sabha that the entire CSR architecture is disclosure-based and companies concerned are required to file details of CSR expenditure annually through MCA21 portal.

"Whenever any violation of CSR provisions is reported, action against such non-compliant companies is initiated as per provisions of the Companies Act, 2013 after due examination of records and following due process of law. So far, sanction for prosecution has been accorded in 366 cases.

"All CSR related offences are compoundable. So far 121 applications for compounding have been made and 37 cases have been compounded," the minister said in a written reply.

Under Section 135 of the Companies Act, 2013, every company having net worth of at least Rs 500 crore, turnover of Rs 1,000 crore or more, or a minimum net profit of Rs 5 crore during the immediately preceding financial year has to make CSR expenditure.

Updated Date:

also read

Here's why the Delta variant of coronavirus makes contact tracing so much harder
Health

Here's why the Delta variant of coronavirus makes contact tracing so much harder

Delta is the most contagious of all variants known. The original Wuhan strain was overtaken by the more contagious D614G strain by March 2020, and that virus was responsible for the Victorian second wave.

COVID-19: India records 39,097 new cases in last 24 hrs, takes total to 3.1 crore; recovery rate at 97,3%
India

COVID-19: India records 39,097 new cases in last 24 hrs, takes total to 3.1 crore; recovery rate at 97,3%

India's total toll due to the coroanvirus rose to 4,20,016 with 546 more deaths since Friday. The number of active cases went up by 3,464 to 4,08,977.

COVID-19: Pakistan bans domestic air travel for unvaccinated as cases cross 1 million mark
World

COVID-19: Pakistan bans domestic air travel for unvaccinated as cases cross 1 million mark

The travel restriction, imposed by the National Command and Operation Centre (NCOC), will be applicable from 1 August on unvaccinated people of over 18 years of age