Government plans to penalise CSR defaulters under Companies Act 2013

 
NEW DELHI . The Narendra Modi-led government will not let companies get away easily if they do not spend the mandated 2% of their profits on Corporate Social Responsibility (CSR) activities as specified by law. The government is planning to add more teeth to the Companies Act 2013 by introducing the penalty clause for companies that miss this target spending repeatedly. At present, non-compliance of CSR rule isn't penalized by the Companies Law, and those unable to spend the stipulated amount can get away ..
 
with some justification.
 
 
 
"Under the current law, there's no mandatory obligation on the company, but a responsibility is cast upon the board members. In case companies repeatedly fail to do so for two or more years, they should be penalized. We can't leave any grey areas in law," a senior government official told. India CSR
 

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