sir, as per the updated module on Corporate and allied laws, penalty U/s 135 shall be levied only when the reasons for non spending on CSR activities are not disclosed in Boards Report. But in the ammendments lecture on youtube you were telling that penalty is attracted when CSR expenditure is not made?

1 answer

Ravi Staff August 24, 2018

Below is Text of Statement from CG Press Release
The Government has accorded permission for initiating penal action against 199 companies for non compliance of provisions of section 135 read with section 134 (3) (o) of the Act. (Means they are covering both Sec 135 & Disclosure in BOD Report Under 134) This was stated by Shri P.P. Chaudhary, Minister of State for Corporate Affairs and Law & Justice in the Rajya Sabha today.
The Government has no proposal to review the state of implementation of the provisions of the existing Act related to Corporate Social Responsibility. Whenever violation of Corporate Social Responsibility (CSR) provisions is found, action under section 134 (8) of the Companies Act, 2013 (the ‘Act’) is initiated. (Wordings of Last Line Also Indicate it Covers Both Sec 135 & Sec 134)
 
I understand there is ambiguity. As there is no amendment in Sec 135 and above is issued as press release by central government. And this press release is after modules were issued.
 
You can express 2 Views
Punishments of Sec 134(8) will be applicable if

  1. Non Disclosure in BOD Report
  2. Non Disclosure in BOD Report + Non Compliance of Sec 135
#1

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