Question : Performance of CSR

(a) whether the performance of the Corporate Social Responsibility (CSR)activities of profit-making companies, public sector companies and other private companies has been satisfactory during the last two years;

(b) whether the Government ismonitoring it regularly and if so, the detailsthereof;

(c) the details of the schemes underwhich companies are engaged in CSRactivities;

(d) whether the companies areadhering to the guidelines issued by theGovernment; and

(e) whether any violation of theguidelines and misuse of funds have beenreported during the said period and if so,the details thereof and the steps taken bythe Government in this regard?

THE MINISTER OF FINANCE
AND CORPORATE AFFAIRS (Smt. NIRMALA SITHARAMAN)
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(a) to (e): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO.122* (2ND POSITION) FOR 1ST JULY, 2019 REGARDING PERFORMANCE OF CSR.
(a) to(e):India is the first country in the world to make Corporate Social Responsibility (CSR) mandatory for all profit making companies meeting certain threshold under the Companies Act, 2013 (‘Act’). Given that the obligation under the CSR provisions have been inexistence from FY 2014-15 only, there has been considerable progress both in terms of number of companies contributing to CSR and overall CSR spent. As per the filings made by companies in the MCA21 registry, details of amount spent by Public Sector Undertakings (PSUs) and private companies is as under;

Year of Filing FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18*
No. of Companies Total Amount Spent (in Cr.) No. of Companies Total Amount Spent (in Cr.) No. of Companies Total Amount Spent (in Cr.) No. of Companies Total Amount Spent (in Cr.)
PSU 380 2816.82 461 4202.14 407 3285.52 76 1479.33
Non PSU 16405 7249.11 21603 10325.45 21063 10956.89 3041 6886.02
Grand Total 16785 10065.93 22064 14527.59 21470 14242.41 3117 8365.35
*Data upto 20.10.2018
The entire CSR architecture is disclosure based and CSR mandated companies are required to file CSR initiatives in annual filing in MCA21 registry. Government has recently established Centralized Scrutiny and Prosecution Mechanism to monitor the compliance by companies. Whenever any violation from CSR provisions are found, notices for call for information are issued. Where non-compliance is established, sanction for prosecution is accorded following the due process of law. So far, sanction for prosecution has been accorded in 366 cases for the F.Y. 2014-15 and 5,382 call for information notices have been issued in F.Y. 2015-16. All CSR related offences are compoundable. So far60 applications for compounding has been received.
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