New Delhi, July 25 : Interim Finance and Corporate Affairs Minister Piyush Goyal said preliminary notices were served to 272 companies for non-compliance of 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 two per cent of their average three-year annual net profit towards CSR activities in a financial year.
In a written reply in Rajya Sabha, Mr 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.
The CSPM was set up by the Ministry of Corporate Affairs in April this year 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.
In case of not spending the requisite amount, the firms concerned have to provide reasons for the same.
The Minister said, this is a continuous process and notices have been served against companies that have not complied with CSR spend requirements and also not furnished any valid reasons for not spending or under spending.
UNI.
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