New Delhi: The government today informed Parliament that the Corporate Affairs Ministry has put in place a centralised scrutiny and prosecution mechanism to monitor enforcement of CSR provisions under the companies law.
Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
Minister of State for Corporate Affairs P P Chaudhary informed the Rajya Sabha that whenever violation of CSR provision is reported, the Registrar of Companies (RoC) initiates action against the company concerned after due examination of records.
“For financial year 2014-15, prosecution against 254 companies were sanctioned, out of which 33 companies filed application for compounding,” he said in a written reply.
In addition to this, the ministry has established Centralised Scrutiny and Prosecution Mechanism in April 2018 for the financial year 2015-16 onwards on pilot basis for enforcement of CSR provisions, the minister added.