The Government has accorded permission for initiating penal action against 199 companies for non-compliance of provisions of section 135 read with section 134 (3) (o) of the Act. This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs and Law & Justice in the Rajya Sabha today.

The Government has no proposal to review the state of implementation of the provisions of the existing Act related to Corporate Social Responsibility. Whenever violation of Corporate Social Responsibility (CSR) provisions is found, action under section 134 (8) of the Companies Act, 2013 (the ‘Act’) is initiated.

Corporate Social Responsibility compliance triggers penal action against companies under Companies Act procedural provisions when violations are found Permission has been granted to initiate penal action against 199 companies for non compliance with Corporate Social Responsibility obligations under the Companies Act. The statement records that there is no proposal to review the CSR implementation framework and that enforcement proceedings are commenced under the Act's enforcement provisions when CSR violations are detected.