Business Standard

India Inc worried over three-year jail provision for violation of CSR norms

According to new CSR norms, a company has to earmark a part of its profit towards social activities and transfer all unspent amount into an escrow account (if it is an ongoing project)

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Ruchika Chitravanshi New Delhi
Corporate India is worried over mandatory spending on corporate social responsibility (CSR) under the new amendments to the Companies Act, which now provides for a three-year jail term if the new CSR norms are not followed.

“We had not anticipated penal provisions. Equating unspent amount to a criminal offence is a harsh step. This is an indication that we are focusing on spending rather than the outcome,” Rumjhum Chatterjee, chairperson-national committee of CSR, Confederation of Indian Industry, told Business Standard.

According to the new CSR norms under Section 135 of the Companies Act, a company has to earmark a part

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First Published: Jul 31 2019 | 11:25 PM IST

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