Centre takes note of Gauhati High Court Lawyer’s plea for CSR transparency

Guwahati, Oct 18: The Centre has taken cognizance of a suggestion made by a Gauhati High Court lawyer on making public details of CSR fund used by companies and planning of schemes by involving the communities.

In a letter to the PMO, advocate Nayan Moni Hazarika had sought amendment in the relevant section of Companies Act, 2013, so that “citizens of the country are properly benefitted by the CSR schemes.”

He said that though a company utilizes substantial amount of money under CSR schemes, their utility for communities are doubtful.

“It is also doubtful, if companies are genuinely utilizing the CSR funds for the communities. Prior to utilizing CSR funds, the companies should constitute a committee of local people of that particular area, if need be, with the assistance of the district commissioners for planning and implementing the schemes. The details of the schemes and allocated funds also need to be made public so that people are aware of it,” Hazarika suggested.

In response, the Ministry of Corporate Affairs wrote back saying that the suggestion will be considered as and when the relevant rules are amended.

In fact, in an office memorandum, the Department of Legal Affairs of the Ministry of Law and Justice has also forwarded the representation to the Corporate Affairs Ministry, requesting “appropriate action”.

By

Staff Reporter