CSR violations not to be treated as criminal offence: Sitharaman

“CSR violations… not be be treated as criminal offence and will be civil liability,” Sitharaman, who also holds the charge of the corporate affairs ministry, said
Industry has expressed concerns over penal provisions for non-compliance with Corporate Social Responsibility requirements in the amended Companies Act, 2013
NEW DELHI: Allaying industry concerns, finance minister Nirmala Sitharaman on Friday said violations of Corporate Social Responsibility (CSR) norms under the companies law will be treated only as a civil liability and not as a criminal offence.
The corporate affairs ministry would review the sections concerned under the Companies Act, she said.
Industry has expressed concerns over penal provisions for non-compliance with Corporate Social Responsibility requirements in the amended Companies Act, 2013.

Addressing the media on measures to boost the economy, Sitharaman said the government respects and honours wealth creators.
“CSR violations… not be be treated as criminal offence and will be civil liability,” Sitharaman, who also holds the charge of the corporate affairs ministry, said.
The government has provided companies through revised orders more time for completing ongoing projects as part of their CSR obligations.