csr: Parliament panel seeks constituency-wise CSR spending by top 10 companies

The Parliamentary Standing Committee on Finance has asked the Ministry of Corporate Affairs (MCA) to analyze the Corporate Social Responsibility expenditure of top 10 private companies by region as well as parliamentary constituency and submit a report within three months.

The Committee expressed its concern about the monitoring mechanism of CSR expenditure and found that “information on CSR expenditure by companies is insufficient and difficult for a common man”.

It said an analysis of the CSR expenditure of top 10 private companies, sector by sector, such as mining sector, real estate sector, construction sector etc as well as constituency wise, be done and submitted to the committee within a period of three months. .

The report tabled in Parliament recently has also demanded a third party audit of CSR funds.

However, the MCA submitted to the panel that such audit was not required as the existing legal provisions provided adequate safeguards in this regard.

The ministry also said that from April 1, with the introduction of CSR 2 form, companies will be required to submit more details about CSR expenditure.

The Corporate Affairs Ministry said, “We have now introduced a new Form CSR 2 in which they have to submit CSR details including a list of projects and where they are doing it, what kind of money is being spent. Is.” its reaction.

The Committee observed that the local expenditure, particularly by mining companies and heavy industries, was neglected and recommended that the local area preference should be made mandatory as per the provisions of the Act, which is currently advisory in nature.

Around 60% posts of SFIO are vacant

The committee has also asked the ministry to fill up the vacancies in Serious Fraud Investigation Office or SFIO within the next financial year so as to increase the case settlement rate of the organizations and bring them closer to their objective of dealing effectively with complex corporate frauds. Can you

SFIO, it observed that, despite an increase in the number of fraud cases referred to the investigative body, with nearly 60% of its sanctioned posts being vacant, SFIO was grappling with a severe staff shortage, leading to the ongoing investigation. The pace slowed down.

According to the latest report of the committee, headed by former Minister of State for Finance Jayant Sinha, 146 out of 238 posts were vacant, affecting the settlement rate as “60% vacancy remains volatile”.

Originally published at Pen 18