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Saturday , 18 November 2017
Breaking News

160 companies to face the heat over CSR violations

Corporate Social Responsibility (CSR) is a way to give back to the society, especially to the ones that are economically weaker and to the environment as well. While many companies take CSR seriously, there are many who just treat it as an unavoidable thing. There are also the ones who just don’t want to be involved in CSR activities. Now, the government has started tracking the companies that have not implemented their CSR programs properly. It may be recalled that companies are required to comply with CSR regulations as per the companies law. Many companies are required to allocate minimum two percent of their three-year annual average net profit for CSR projects. However, many companies have been found to be violating these norms.

After tracking the non-complying companies, the corporate affairs ministry has sent show-cause notices to more than 1000 companies. Based on reports provided by  Regional Directors (RDs) and Registrar of Companies (RoCs), a decision has been taken to take legal action against companies that have not complied with CSR norms. Union minister PP Chaudhary said that permission has been given by the ministry to take penal action against 160 companies that are in violation of CSR norms. The charges will be filed against these companies under Section 134(8) of the Act for non- compliance. Companies could be fined anywhere between Rs 50,000 and Rs 25 lakh for non-compliance of CSR norms.

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