Unspent CSR funds must be held in a special account and spent within a multi-year period or transferred. Amendments to section 135 require that where a company has not completed three financial years, CSR obligations be measured over its actual preceding years; unspent CSR must be transferred to a specified fund unless it relates to an ongoing project meeting prescribed conditions. For ongoing projects, companies must open an Unspent Corporate Social Responsibility Account within thirty days and spend the amount within three financial years, failing which the amount must be transferred to the specified fund. Penalties apply for contraventions and the Central Government may issue directions to ensure compliance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Unspent CSR funds must be held in a special account and spent within a multi-year period or transferred.
Amendments to section 135 require that where a company has not completed three financial years, CSR obligations be measured over its actual preceding years; unspent CSR must be transferred to a specified fund unless it relates to an ongoing project meeting prescribed conditions. For ongoing projects, companies must open an Unspent Corporate Social Responsibility Account within thirty days and spend the amount within three financial years, failing which the amount must be transferred to the specified fund. Penalties apply for contraventions and the Central Government may issue directions to ensure compliance.
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