Indian Inc. welcomes move to decriminalise CSR violations

Firms can use funds in an effective way sans fear: BSE MD
On Friday, Finance Minister Nirmala Sitharaman announced that corporate social liability (CSR) violations would not be treated as criminal offences & would instead be a civil liability, in a move welcomed by India Inc.

“CSR spend & criminal proceedings on that was a surprise to many when it was announced.

Ashish Chauhan MD & CEO, BSE said, “Taking it back is a welcome move. It will allow the corporations to think & employ their CSR funds in an effective way without fear. This step has certainly given a boost to the morale of corporate India".

Ms. Sitharaman said in her presentation, “[The] Ministry of Corporate Affairs will review the sections in Companies Act on CSR violations".

When asked for comments, Abhishek Lodha, MD, Lodha Group, said, “Job creators (business) will appreciate the steps taken on CSR & other measures. While the economy will take time to recover, the process will start from today. The important steps announced today will boost job creation & revive economic sentiment.”

The Govt. has provided companies, through revised orders, the time for completing on-going projects towards fulfil their CSR obligations.

Mukund Rajan, chairman, ECube Investment Advisors, believes these are welcome steps to restore the confidence in the economy.

Addressing risk
He said, “With the fiscal space available to the government being limited, the private sector needs to be encouraged".

He added, “The willingness to address the risk & cost of doing business, as is reflected with the decision on CSR issue, in an important gesture in this context".

Mahindra Group chairman Anand Mahindra tweeted that a willingness to relook at policies was a display of strength, not weakness.

“Today’s press conference by Finance Minister Nirmala Sitharaman will, I hope, mark the start of a new, interactive & interdependent relationship between the government & business,” Mr. Mahindra tweeted.

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