CORPORATE SOCIAL RESPONSIBILITY OF PSUS

CORPORATE SOCIAL RESPONSIBILITY OF PSUS

As per the existing guidelines on Corporate Social Responsibility (CSR) issued by the Department of Public Enterprises (DPE) in April, 2010, all profit making Central Public Sector Enterprises (CPSEs), including Maharatna CPSEs are required to select CSR activities which are aligned with their Business strategy and to undertake them in a project mode. Giving this information in written reply to a question in Lok Sabha the Minister of Heavy Industries and Public Enterprises, Shri Praful Patel, said that CPSEs are mandated to spend their funds on CSR projects selected by them with the approval of their respective Boards. All profit making CPSEs are required to allocate budget mandatorily through a Board Resolution as percentage of net profit (previous year) in the following manner:

Type of CPSEs Net Profit (Previous Year)	Expenditure range for CSR in a Financial Year (% of profit)
(i) Less than Rs. 100 crore	3% – 5%
(ii) Rs.100 crore to Rs. 500 crore	2% – 3% (Subject to a Minimum of Rs. 3 crore)
(iii)Rs.500 crore and above	0.5% – 2%

Shri Patel informed the House that the loss making CPSEs are not mandated to earmark specific funding for CSR activities. CSR Budget is fixed for each financial year and this fund does not lapse. It is transferred to a CSR funds in which it accumulates. Implementation of CSR activities of CPSEs is monitored by the administrative Ministries/ Departments of concerned CPSEs. State/UT/PSU-wise information of CSR work undertaken by the CPSEs, including Maharatna CPSEs and the number of persons benefited there from, is not maintained centrally in the Department of Public Enterprises. CPSEs are free to take up CSR Projects for upliftment of weaker sections, and backward districts, the Minister said in his reply.

Source: Ministry of Heavy Industries & Public Enterprises

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CS Prakash Verma

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STEPS TO CHECK INFLOW OF ILLEGAL MONEY

STEPS TO CHECK INFLOW OF ILLEGAL MONEY

Reserve Bank of India (RBI) has issued comprehensive instructions/guidelines to banks on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002.

Also under PMLA 2002, the reporting entities, including banks, financial institutions and intermediaries of securities market, payment system operators and authorized persons which include Money Transfer Service Providers, Authorized Money Changers etc, are under obligation to file Suspicious Transaction Reports (STRs) to the FIU-IND. After analysis of STRs, the information is disseminated to the appropriate law enforcement agencies for further investigation.

Further, the Government monitors the receipt and utilization of foreign contribution received by any ‘person’ including Non Government Organisations (NGOs) in the country in terms of Foreign Contribution (Regulation) Act, 2010 and the Rules framed thereunder.

In cases of receipt of funds from abroad other than through authorized channels, Directorate of Enforcement takes appropriate action under Foreign Exchange Management Act, 1999.

During the years 2009-10, 2010-11, 2011-12 and 2012-13 (upto 28.2.2013), based upon the investigations conducted, the Adjudicating Authorities under FEMA have issued 945 Show Cause Notices for alleged contravention of the relevant provisions of FEMA relating to the transfer of funds unauthorisedly to the extent of about Rs. 2530 crore.

Apart from above, on the basis of enquiries on the complaints received, 24 cases have been referred to CBI, 10 cases to State Police, 35 NGOs have been placed in Prior Permission category, accounts of 32 NGOs have been frozen, 72 NGOs have been prohibited from receiving foreign contribution and registration of 4138 NGOs have been canceled by Ministry of Home Affairs.

As per the Master Circulated dated 2.7.2012 issued by RBI, and in terms of Regulation 5A of the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulation 2000, Foreign Embassy/Diplomat/Consulate General are permitted to purchase/sell immovable property (other than agricultural land/plantation property/farm house) in India subject to clearance from Ministry of External Affairs, Government of India, besides payment of the consideration amount out of funds remitted from abroad through normal banking channels.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in Lok Sabha.

Source: Government of India, Ministry of Finance

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With Regards

CS Prakash Verma

Email: Prkverma@gmail.com