'Prosecution Sanction' accorded in 366 cases for non-compliance of CSR, MoS Finance informs Lok Sabha

The government has accorded "prosecution sanction" in 366 cases for non-compliance of Corporate Social Responsibility norms in the 2014-15 period and given notice in 5382 cases, Minister of State for Corporate Affairs Anurag Thakur told the Lok Sabha on Monday. Replying to supplementaries during the question hour, he said that money spent under CSR was increasing and Rs 10,065 crore was spent by as many as 16,785 companies in 2014-15 and Rs 14,242 crore by 21,470 companies in 2016-17.

He said India was the first country to implement Corporate Social Responsibility (CSR) norms under a bill passed in 2013. The minister said that a centralised scrutiny and prosecution mechanism was established to streamline the work under the initiative and 5382 companies were given notice.

"No action was taken against those who gave satisfactory replies but those who did not, the action was taken against them," he said. The minister said that the norms provide for strict action against violations and officials can get up to three years in jail and a fine of Rs 5 lakh while the companies can be fined between Rs 50,000 to Rs 25 lakh.

Thakur said companies undertaking CSR activity have to file an annual return. "More money under CSR has been spent in states such as Maharashtra, Andhra Pradesh and Gujarat," he added.

Thakur said that 25-35 per cent of the money spent was on the health sector, 29-35 per cent on education, 10-11 per cent on rural development.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)