Govt sanctioned prosecution in 366 cases related to CSR norms violations: Sitharaman

Prosecution proceedings have been sanctioned in 366 cases related to violation of CSR provisions under the companies law, the Government said on Monday. Under the Companies Act, 2013, certain class of profitable entities is required to shell out at least two per cent of their three-year average annual net profit towards CSR (Corporate Social Responsibility) activities.

As part of amendments to the Act, non-compliance with CSR provisions has been made “civil wrong” with effect from January 22, 2021. “Whenever any violation of CSR provisions is reported, action against such non-compliant companies are initiated as per provisions of the Act after due examination of records and following due process of law. All CSR related defaults are compoundable.

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