284 companies may face prosecution for CSR non-compliance – The Economic Times
The government has sanctioned prosecution proceedings against 284 companies and sent 5,382 notices to companies that have not fulfilled the mandatory corporate social responsibility (CSR) expenditure norms, minister of state for corporate affairs P P Chaudhary has said.
Companies with a net worth of Rs 500 crore or more, revenues of Rs 1,000 crore or more, or net profit of Rs 5 crore or more in a fiscal year are required to spend at least 2% of the average profits of the preceding fiscal years on CSR activities, according to provisions of the Companies Act, 2013.
“While the corporate sector is largely compliant with CSR provisions, some violations of the provisions have been reported and to discourage such violations the government has sanctioned prosecution against 284 companies,” Chaudhary said at a national summit on CSR organised by Confederation of Indian Industry (CII) on Tuesday.
The minister lauded efforts by Indian companies to create a positive impact in the areas of healthcare, education and rural development and added that the CSR framework of the Companies Act has the potential to unlock social expenditure of Rs 15,000-20,000 crore over the next two-three years.