Section 135 of Companies Act, 2013 along with Schedule VII and CSR Policy Rules, 2014 came into force with effect from April 01, 2014.
Notices sent to thousands of Cos’ for failure to spend CSR funds
Meanwhile, notices have been sent to thousands of companies that have failed to spend funds under Corporate Social Responsibility.
Replying to a question regarding CSR compliance, Minister of State for Corporate Affairs P P Chaudhary said based on scrutiny, call for information letters to 5,382 companies have been issued for the financial year 2015-16.
“Further, 313 prosecutions have been sanctioned for the financial year 2014-15 and 33 companies have filed an application for compounding for the same year,” the Minister said during February Parliament session.
The information was provided by Chaudhary in a written reply to the Lok Sabha on February 8, 2019.
Lawmaker Santosh Ahlawat had asked the Ministry of Corporate Affairs whether the Government has sent notices to thousands of companies which have failed to spend funds under CSR policy and asked for action being taken against the defaulters.
Source: Filings by companies up to June 30, 2018, in the MCA21 registry.
