Lekha G –
The Bombay High Court had directed the Maharashtra Government to cancel registration of industries in Vidarbha owing to the failure of sharing their CSR funds for Covid-19 management.
The order was passed in response to amicus curiae Shreerang Bhandarkar pointing out the non-cooperation of the companies in the region with their CSR funds and the Court further questioned his need for a directive by the Court when there are provisions in Companies Act, 2013 for companies violating such rules.
“We must point out that there are specific provisions in the Act to deal with unwilling, defaulting and non-responsive companies under Sections 136, 450, 454 and others. Both Divisional Commissioners and Collectors of all Vidarbha districts should do a thorough study of these provisions and apply them against such erring companies. If any directives are required, a correct and detailed factual position should be placed before the High Court so that we could take a decision in the next hearing,” the Court stated.
The Court further observed the present position of companies contributions are unknown as the Commissioner’s affidavit was filed two weeks ago and directed the NTPC to deposit the cheque of 3 crore of CSR funds through Mouda plant for Covid-19 management with the collector before the next date of hearing June 9, 2020.