Modi is facing criticism for creating a new coronavirus relief fund PMCares when about $500 million was lying unspent in an older fund, even as top businesses and celebrities pledge millions of dollars in new donations

A mandatory CSR regime would require investors to ensure that the CSR contributing company has in place adequate avenues for its CSR obligations

Amounts to be utilised towards a CSR activity, but unspent must be parked in a special account as prescribed under the provision within 30 days of the end of the relevant financial year.

Among 40-odd amendments brought about in the Companies Act 2013, the most notable ones relate to better governance and measures to curb corporate frauds

Following days of intense lobbying by India Inc and the recommendations of the high-level committee on CSR to make non-compliance a civil offence, the government has done away with plans to jail officials caught flouting norms

The new CSR norms will force companies to focus on short-term projects

Rajya Sabha passed the Companies (Amendment) Bill, 2019 was passed by voice vote on Tuesday and the legislation would replace ordinance issued by the corporate affairs ministry

Under the Act, companies earning a profit of over Rs 5 crore, turnover of Rs 100 crore or net worth of more than Rs 500 crore are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities

For companies that are not able to spend their full amount for CSR activities in ongoing projects within a particular financial year, the money can be transferred to a CSR account. The latter amount has to be spent within the next three financial years

The average net profit of these 1,080 companies over last three years was Rs 5.35 lakh crore.