Lawstreet Journal

Bombay High Court upset over non-utilization of CSR funds for covid relief by Vidarbha companies [READ ORDER]

Lawstreet Journal 24 May 2021 8:36pm

Image courtesy: Lawstreet Journal Judiciary Bombay High Court upset over non-utilization of CSR funds for covid relief by Vidarbha companies [READ ORDER]

The Bombay High Court has shown disappointment over the unsatisfactory response of the private companies in Vidarbha about the utilization of Corporate Social Responsibility(CSR) funds towards covid relief.

The Nagpur Bench of Bombay High Court noted that the response received by the Court from different companies operating in the Vidarbha region was “not encouraging enough”. 

A suo moto hearing was initiated in the Bombay High Court to strengthen the health care system in the Vidarbha region to tackle the Covid-19 pandemic. The Court had appealed to private and public sector companies to utilize their CSR funds for the management of Covid-19 in that region.

A division bench comprising of Justice Sunil Shukre and Justice Avinash G. Gharote observed that “While responses from the public sector companies like WCI/ CIL and MOIL has been so far extremely good, the same is not with the private sector companies.”. 

During a previous hearing of this suo moto Public Interest Litigation (PIL), the bench had request amicus curiae Shreerang Bhandarkar and other Advocates including Sudhir Puranik, Bhanudas Kulkarni, Tushar Mandlekar, Nidhi Dayani, M.Anil Kumar, and others to inform about industrial units in the Vidarbha region whose Corporate Social Responsibility Fund could be utilized for Covid-19 management. 

The Court further observed that corporate entities are enjoined with a statutory duty under Section 135 of the Companies Act, 2013, to discharge their corporate social responsibility. 

Section 135 of the Companies Act, 2013, provides that every company having a net worth of Rs.500 crores or more,… Continue Reading...

Tagged: Bombay High Court  
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