Question raised in Parliament over CSR spending by companies
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New Delhi: The question of what companies are doing in the name of Corporate Social Responsibility (CSR) and how the government is overseeing the implementation of the CSR legislation was raised in Parliament on Tuesday.
Rajya Sabha MP from Punjab Partap Singh Bajwa asked the ministry of corporate affairs to inform Parliament about the total CSR spending by companies on government projects, any violations of CSR rules and any action taken against firms that had breached them.
In response, the minister of state for ministry of corporate affairs Arjun Ram Meghwal said, “Show cause notices have been issued by Registrar of Companies to 496 companies for non-compliance of Section 135 read with Section 134(3)(o) of the Companies Act, 2013.”
CSR rules that came into force on 1 April 2014 direct firms with a net worth of Rs500 crore or revenue of Rs1,000 crore or net profit of Rs5 crore to spend 2% of their average profit of the previous three years on social development-related activities.