<p class="title">The government does not micromanage CSR activities carried out by corporates under the companies law, Union Minister Piyush Goyal told the Lok Sabha.<br /><br />Under the Companies Act, 2013, a certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) works.</p>.<p class="title">Responding to supplementaries during the Question Hour, Corporate Affairs Minister Piyush Goyal said the government does not "micromanage" CSR activities.<br /><br />As per the law, a company has to constitute a CSR committee of its board and that would decide on the activities to be taken up.<br /><br />"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.<br /><br />For fiscal 2014-15, the prosecution against 254 companies were sanctioned out of which 33 companies have filed applications for compounding, he added. The ministry has also set up a<br /><br />Centralised Scrutiny and Prosecution Mechanism on a pilot basis for enforcement of CSR provisions. </p>
<p class="title">The government does not micromanage CSR activities carried out by corporates under the companies law, Union Minister Piyush Goyal told the Lok Sabha.<br /><br />Under the Companies Act, 2013, a certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) works.</p>.<p class="title">Responding to supplementaries during the Question Hour, Corporate Affairs Minister Piyush Goyal said the government does not "micromanage" CSR activities.<br /><br />As per the law, a company has to constitute a CSR committee of its board and that would decide on the activities to be taken up.<br /><br />"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.<br /><br />For fiscal 2014-15, the prosecution against 254 companies were sanctioned out of which 33 companies have filed applications for compounding, he added. The ministry has also set up a<br /><br />Centralised Scrutiny and Prosecution Mechanism on a pilot basis for enforcement of CSR provisions. </p>