CRS Duty of private and public sector : Bombay High Court

The Bombay High Court(Nagpur Bench) has recorded unhappiness at the poor response shown by private companies in Vidarbha region to the appeal made by it to use CSR funds for COVID-19 relief.

The Court observed that the companies had a good opportunity to discharge their statutory duty under Section 135 of the Companies Act, 2013 in the present circumstances.

The Court had made an attempt to get detailed information about availability of CSR funds with different private sector companies operating in Vidarbha Region through Vidarbha Industries Association, Nagpur.
“But, the response that this Court has received so far from different companies is not encouraging”, observed a division bench comprising Justices Sunil Shukre and Avinash G Gharote.

The Court expressed its satisfaction at the response it had received from public sector companies like Western Coalfields Ltd. and Manganese Ore (India) Limited. However, it had not received responses from public sector companies like NTPC, MAHAGENCO (Power Generation), MAHAGENCO (Power Transmission) and MSEDCL, as well as private sector companies. It also clarified that if these companies do not respond, it will have to issue necessary directions.

However, it is expected not only from the State Government, but also from the public sector companies and also private sector companies to make their contributions to the noble cause.

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