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Centre does not favour micro management of CSR initiatives: Piyush Goyal

Action is taken against non-compliant companies after due examination of records

Press Trust of India  |  New Delhi 

Piyush Goyal
FILE PHOTO: Piyush Goyal

The government does not micromanage carried out by corporates under the companies law, Union Minister told the

Under the Companies Act, 2013, a certain class of profitable entities are required to shell out at least 2 per cent of their three-year annual average net profit towards (CSR) works.

Responding to supplementaries during the Question Hour, Corporate Affairs Minister said the government does not "micromanage"

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According to the law, a company has to constitute a of its board and that would decide on the activities to be taken up.

"Whenever a violation of CSR provision is reported, the initiates action against such non-compliant companies after due examination of records," Goyal said.

For the financial year 2014-15, the prosecution against 254 companies was sanctioned out of which 33 companies have filed applications for compounding, he added.

The ministry has also set up a Centralised Scrutiny and Prosecution Mechanism on the pilot basis for enforcement of

First Published: Fri, August 10 2018. 14:53 IST