• Introduction

Before we discuss the above-mentioned topic at length it’s imperative on our parts to understand ‘CSR’ and ‘PM Cares’ in all lucidity.

Under Section 135 there are certain characteristics given which if a company qualifies is liable to maintain a CSR fund which makes it mandatory to divert 2% of their average net profit towards CSR activities within three preceding years. The Act prescribes that every company having a net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crores or more during any financial year will be required to maintain a CSR Fund.[1]

PM Cares fund later on May 26, 2020, was brought in Schedule VII, through a retrospective amendment, based on the argument that PM Cares was set up by the central government.

• Critical evaluation

In a democratic structure like India, it becomes imperative at times that a holistic system of transparency is adopted and religiously followed by every entity and individual working within the domains of the country. However, the system seems evidently opaque by the inclusion of PM Care Fund in the same, is damaging the whole foundation with which CSR Fund was established, mainly of the two reasons:

• Not in the ambit of RTI: The first and the foremost argument that swims to the surface is how PM Cares fund has been kept out of the ambit Public Authority, and it’s for this reason that it automatically gets out of the purview of RTI. The biggest misery behind that is, if this so happens then no transparency can be assured as to what amount and kind of funds are being allocated by any entity at large.
• No Redressal forum: The second fallacy remains intact, is that with the given situation in hand, all alternatives have been pushed out of the table. As the first step of redressal has only been shut down. This implies that with no RTI available the authenticity of the transfer made by any entity cannot be questioned. This construes, that one has no forum to approach regarding the transfer made by any firm from it’s CSR Fund towards PM Cares.

• Conclusion

Though CSR has been proved to be pivotal in aspects of social and economic development of the downtrodden, however yet it is not free from the clutches of corruption and malpractices, like that of inclusion of the PM care Fund and the efforts of removing the transparency. It’s because of this reason that CSR is still seen with a critical lens.

BY

AVANTIKA SHUKLA

BA-LLB 3th Year

BVDU NEW LAW COLLEGE, PUNE

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[1]  https://economictimes.indiatimes.com/news/company/corporate-trends/companies-may-face-penal-action-for-not-meeting-csr-rules-nirmala-sitharaman/articleshow/70459453.cms