**Summary:**
This document summarizes the Indian government's policy regarding Corporate Social Responsibility (CSR) expenditure, specifically addressing concerns about fair allocation in Meerut and Hapur districts of Uttar Pradesh. The legal framework for CSR is defined by Section 135 of the Companies Act, 2013, Schedule VII of the Act, and the Companies CSR Policy Rules, 2014. Companies meeting specific financial thresholds (net worth of Rs. 500 crore or more, turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during the immediately preceding financial year) are mandated to spend at least 2% of their average net profits from the preceding three financial years on activities specified in Schedule VII of the Act. The policy emphasizes that CSR is a Board-driven process, with the company's Board responsible for planning, executing, and monitoring CSR activities based on the recommendations of its CSR Committee. The Board must ensure the approved amount is spent on the assigned activities, and any unspent amounts must be transferred to designated funds within a prescribed time limit. The government does not provide specific directives on which activities or areas companies should allocate their CSR funds. The statement was delivered in Lok Sabha on August 4, 2025, by Shri Harsh Malhotra, Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways, in response to question 2498 raised by Shri Arun Govil.
Key Entities Referenced
Arun Govil: Member of Parliament who raised the question about CSR expenditure.
Ministry of Corporate Affairs: The Indian government ministry responsible for corporate affairs.
Harsh Malhotra: Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways who provided the answer.
Meerut, Uttar Pradesh: One of the districts in Uttar Pradesh mentioned in the question regarding CSR expenditure.
Hapur, Uttar Pradesh: One of the districts in Uttar Pradesh mentioned in the question regarding CSR expenditure.
Corporate Social Responsibility (CSR): A company's sense of responsibility towards the community and environment in which it operates.
Section 135 of the Companies Act, 2013: The section of the Companies Act, 2013 that provides the legal framework for Corporate Social Responsibility.
Companies CSR Policy Rules, 2014: Rules pertaining to the Corporate Social Responsibility policy as per the Companies Act.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2498
ANSWERED ON MONDAY, AUGUST 4, 2025/SRAVANA 13, 1947 (SAKA)
Fair Expenditure of CSR in Meerut and Hapur, UP
QUESTION
2498. Shri Arun Govil:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether Government has any action plan for the fair expenditure of CSR amount
in each district; and
(b) if so, the time by which the fair CSR expenditure is likely to be incurred in Meerut
and Hapur districts of Uttar Pradesh?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER
OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
[SHRI HARSH MALHOTRA]
(a)&(b): The legal framework for Corporate Social Responsibility (CSR) is provided
through Section 135 of the Companies Act, 2013, Schedule VII of the Act and
Companies (CSR Policy) Rules, 2014. Every CSR mandated company having net
worth of Rs. 500 crore or more or turnover of Rs.1000 crore or more or net profit of
Rs. 5 crore or more during immediately preceding financial year shall ensure that it
spends, in every financial year, at least 2% of the average net profits of the company
made during the three immediately financial years in areas or subjects specified in
Schedule VII of the Act. CSR is a Board driven process and the Board of the company
is empowered to plan, decide, execute and monitor CSR activities of the company
based on the recommendation of its CSR Committee. The Board has to ensure that
the approved amount has been spent on the assigned activity(ies). In case any
amount remains unspent then such amount shall be transferred in the designated
fund(s) in Schedule VII in the prescribed time limit. The Government does not issue
any direction on which activity or area, company shall spend.
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