Make cos use CSR funds for Covid battle: Bombay high court

NAGPUR: Upset over the failure of industries in Vidarbha to share their CSR funds for Covid-19 management, the Nagpur bench of Bombay high court on Wednesday orally directed the Maharashtra government to wield the stick of law to act against them by cancelling their registrations.
The rebuke came after amicus curiae Shreerang Bhandarkar, while quoting affidavits filed by the divisional commissioner, pointed out that many companies in the region have refused to part with their CSR funds and are not cooperating.
Flaying the commissioner, the judges orally asked him why he needs HC’s directives every time when there is a provision in the Companies Act, 2013, to punish such erring manufacturers if they violate the rules.
“We must point out that there are specific provisions in the Act to deal with unwilling, defaulting and non-responsive companies under sections 136, 450, 454 and others. Both divisional commissioners and collectors of all Vidarbha districts should do a thorough study of these provisions and apply them against such erring companies. If any directives are required, a correct and detailed factual position should be placed before the HC so that we could take a decision in the next hearing,” they said.
While hearing the suo motu PIL where Bhandarkar was pleading as amicus curiae along with Nidhi Dayani, the justices noted that the commissioner’s affidavit were filed about two weeks ago and they weren’t aware of the present position till date. “It’s not known as to how many willing companies have actually sent their contributions.”
Earlier, government pleader Ketki Joshi informed that the NTPC had consented to donate CSR funds of Rs 3crore through its Mouda plant for Covid-19 management. The bench directed it to deposit the cheque with the collector before June 9, fixed as the next hearing date.