Draft Companies (CSR Policy) Amendment Rules, 2020: Comments to the Ministry of Corporate Affairs
Comments Submitted to the Ministry of Corporate Affairs regarding the Draft Companies (CSR Policy) Amendment Rules, 2020
In response to the Ministry of Corporate Affairs publishing the Draft Companies (CSR Policy) Amendment Rules, 2020, Common Cause submitted its comments and suggestions on March 25, 2020. The main provision of concern was Rule 4 (2), which suggested that registered trusts and societies would no longer be eligible to receive CSR funds once the Act is in force. Common Cause highlighted the unprecedented nature of the move, citing past Ministry initiated Committee reports. This included the High-Level Committee on Corporate Social Responsibility (HLC), set up on September 28, 2018, where there was no mention of removing registered trusts and societies from the CSR funding pool. We also underlined various negative impacts this move would have on the overall civil society activity portfolio and CSO- government collaborations. In addition, we advocated for this provision to be reconsidered, so that registered trusts and societies continue to receive CSR funds.