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 Corporate Social Responsibility (CSR) works.
According to the law, a company has to constitute a CSR committee of its board and that would decide on the activities to be taken up.
"Whenever a violation of CSR provision is reported, the Registrar of Companies 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 CSR provisions.