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Bombay HC Upset over non-utilisation of CSR funds for COVID relief by Vidarbha Companies

Bombay High Court law insider

Teesha

The Bombay High Court showed unhappiness at the poor response shown by private companies in Vidarbha region, to the appeal made by it for utilisation of CSR fund for COVID relief.

The Bench comprising of Justices Sunil Shukre and Avinash G Gharote observed that, the response that court received so far from different companies on its attempt to get detailed information regarding availability of CSR funds, with different private sector companies operating in Vidarbha region through Vidarbha Industries Association is not encouraging

The court apprised that the attempt was made to strengthen the health care system amidst the COVID pandemic, and for that they require not only public sector companies but private sector companies to come forward as well.

The Court further contended that CSR is a statutory obligation as per section 135 and the companies are expected to utilise the same in the present pandemic to discharge such obligation.

Furthermore, the Court warned that if the companies do not respond to the appeals made by the court, it will compel the court to take actions to wake up these companies and answer the call of their duty.

The bench passed the order in the suo moto case taken to deal with COVID-19 issues in Vidarbha region. The matter will be next considered on May 27.