**Executive Summary**
This document is an answer to Unstarred Question No. 1351 in the Lok Sabha, dated December 08, 2025, regarding the monitoring of grants related to companies working in fields such as pollution control and climate change. It clarifies the government's procedures for tracking companies and their finances, referencing relevant sections of the Companies Act and the Foreign Contribution (Regulation) Act. The response is provided by the Minister of State in the Ministry of Corporate Affairs.
**Key Points / Main Content**
* **Company Registration and Identification:**
* Companies receive a NIC activity code at incorporation based on their business nature, embedded in their Corporate Identification Number (CIN).
* **Data Maintenance:**
* Specific data of companies in pollution control, environmental protection, carbon credits, climate change mitigation, etc is not maintained under MCA-21.
* There are several companies incorporated under the NIC code that have business activities related to recycling, solar energy, sewage, sanitation, and waste management.
* No specific data on grants/fund received from abroad is maintained under MCA-21.
* **Financial Oversight and Compliance:**
* All companies must prepare financial statements as per Section 129 of the Companies Act, 2013, ensuring a true and fair view.
* Companies must comply with notified accounting standards and follow Schedule III.
* Companies must file financial statements under Section 137 of the Companies Act, 2013, with the Registrar of Companies.
* Auditors audit financial statements under Section 143 of the Companies Act, 2013.
* The Registrar of Companies takes action against defaulting companies following due process.
* **Foreign Contributions:**
* Processing of registration and renewal applications under the Foreign Contribution (Regulation) Act, 2010, is based on field enquiry reports from Central Security Agencies.
* Appropriate action is taken against organizations violating the Foreign Contribution (Regulation) Act, 2010.
**Impact Analysis**
**Companies Involved in Pollution Control/Environmental Protection/Carbon Credits:**
* **Impact:** Companies must adhere to strict financial reporting standards as outlined in the Companies Act, 2013, and ensure compliance with all relevant regulations.
* **Action Required:** These companies must prepare and file accurate financial statements, comply with accounting standards, and cooperate with audits. They must also adhere to regulations under the Foreign Contribution (Regulation) Act) if receiving funds from abroad.
**Registrar of Companies:**
* **Impact:** Responsible for ensuring companies comply with financial reporting and regulatory requirements.
* **Action Required:** Monitor companies for compliance, take action against defaulting companies after following due process, and collaborate with Central Security Agencies regarding foreign contributions.
**Ministry of Home Affairs:**
* **Impact:** Responsible for the processing of registration and renewal applications under the Foreign Contribution (Regulation) Act, 2010
* **Action Required:** Provide information on registration and renewal applications.
**Central Security Agencies:**
* **Impact:** Responsible for providing field enquiry reports to the Ministry of Home Affairs.
* **Action Required:** Investigate and report on companies receiving foreign contributions to determine compliance with relevant regulations.
Key Entities Referenced
Companies Act, 2013: Indian law that regulates the incorporation of companies, responsibilities of directors, dissolution of a company, etc. Relevant sections 129, 137 and 143 are mentioned in the answer.
Ministry of Corporate Affairs: The primary ministry responsible for administering the Companies Act, 2013 and answering the parliamentary question.
Foreign Contribution (Regulation) Act, 2010: Indian law regulating the acceptance and utilization of foreign contributions by individuals and organizations.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1351
ANSWERED ON MONDAY, DECEMBER 08, 2025
Agrahayana 17, 1947 (Saka)
Monitoring of Grants
QUESTION
1351. Shri Rajesh Ranjan:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether many companies in the country are registered in the
name of working in the fields of pollution control, environmental
protection, carbon credits, climate change mitigation, etc;
(b) if so, whether the Government has an updated and verified list of
all such companies claiming to work in these areas, if so, the details
thereof;
(c) whether the Government has complete details of grants/funds
received by these companies from abroad for environmental protection
or carbon mitigation works, if so, the details thereof;
(d) whether the Government regularly checks that the foreign funds
received by these companies are being used in genuine projects and not
just for paperwork or making unfair profits;
(e) if so, the details thereof; and
(f) the details of the monitoring process undertaken, compliance
checks conducted, action taken and corrective measures proposed by
the Government in this regard?
ANSWER
Minister of State in the Ministry of Corporate Affairs; Minister of State in
the Ministry of Road Transport and Highways.
(Shri Harsh Malhotra)
(a)&(b) - Companies at the time of incorporation are provided NIC
activity code on the basis of their nature of business which is embedded
in the unique CIN(Corporate Identification Number) given to each
company. Specific data of companies in the field of pollution control,
environmental protection, carbon credits, climate change mitigation, etc
is not maintained under MCA – 21.However, there are several companies
incorporated under NIC Code having business activities such asRecycling of Metal Waste & Scrap, Recycling of Non-metal waste &
Scrap, Generation of Solar Energy, Generation of Electricity from other
non-conventional sources, Sewage & refuse disposal, Sanitation &
similar activities, garbage collection, transportation and disposal,
collection of hazardous, and non-hazardous waste etc.
(c) to (f)- All companies are required to prepare Financial Statement as
per Section 129 of Companies Act, 2013 which mandates that
Company’s financial statements must present a true and fair view,
comply with notified accounting standards and follow Schedule III. All
companies are required to file their financial statement under Section
137 of the Companies Act, 2013 with Registrar of Companies. The
auditor audits the financial statement of the company under section 143
of the Companies Act, 2013. Suitable action is taken from time to time
by Registrar of Companies against the defaulting companies after
following due process. No specific data on grants/fund received from
abroad is maintained under MCA-21. Further, as per the information
given by the Ministry of Home Affairs, processing of registration and
renewal applications under Foreign Contribution (Regulation) Act, 2010
are based on field enquiry report from Central Security Agencies and
appropriate action is taken against organizations violating the provisions
of Foreign Contribution (Regulation) Act, 2010.
******