Misuse of CSR funds:PIL in HC seeks action against ex-minister

Image
Press Trust of India New Delhi
Last Updated : Oct 23 2015 | 1:32 PM IST
A PIL has been filed in Delhi High Court alleging that former Steel Minister Beni Prasad Verma, ministry officials and several steel PSUs like SAIL misutilised CSR funds by investing a major portion of them in two Uttar Pradesh districts which were connected to him.
The petition, which seeks action against the former minister and officials of the ministry and PSUs as well as a CBI probe into the whole matter, came up for hearing before a bench of Chief Justice G Rohini and Justice Jayant Nath which asked government counsel Jasmeet Singh to take instructions and inform it on December 16.
The petitioner Rakesh Kumar Tiwari has alleged that the PSUs violated the Department of Public Enterprises (DPE) guidelines regarding Corporate Social Responsibility (CSR) activities by investing their funds in districts Gonda, the constituency of Verma, and Barabanki, where he resides.
In his plea he has sought directions to the government to implement the recommendations of the Standing Committee of Coal and Steel which in its 35th report had recommended enquiry into the matter of the PSUs investing CSR funds against the standard guidelines as well as stringent departmental action against officials of steel PSUs who sanctioned CSR funds for the two districts.
His plea also claimed that the committee, set up by the 15th Lok Sabha, had strongly disapproved of the manner in which CSR funds were spent by the PSUs in the two districts at the cost of other deserving places.
The petition, filed through advocate Rishi Kumar Tripathi, has alleged that Verma, during his tenure as steel minister, had "misutilised to his advantage the resources of the ministry to please the residents of his constituency to win a political battle".
The petition has claimed that the DPE guidelines stipulate that CSR funds be invested in the peripheral areas of the PSU.
But "without any justification" the activities were focused on the two districts where none of the companies, including SAIL, National Mineral Development Corporation (NMDC), Rashtriya Ispat Nigam Ltd (RINL), Manganese Ore India Ltd (MOIL), Metallurgical and Engineering Consultants (India) Ltd (MECON), and Metal Scrap Trade Corporation (MSTC) have any projects, it alleged.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 23 2015 | 1:32 PM IST

Next Story