The Ministry of Corporate Affairs ( MCA ) has issued clarifications on the spending of Corporate Social Responsibility (CSR) Funds for Coronavirus ( COVID-19 ) so it is a Corporate Social Responsibility (CSR) Activity.
The MCA issued circular in the name of the Joint Secretary to the Government of India, Gyaneshwar Kumar Singh, addressing all the stakeholders that spending Corporate Social Responsibility (CSR) Funds for Coronavirus (COVID-19) is covered under the ambit of Corporate Social Responsibility (CSR) Activity.
The Government of India keeping in view the spread of Coronavirus across India and it is declared as a pandemic by the World Health Organisation (WHO) so in order to address the notified disaster the Government of India has given the clarification pertaining to the spending of Corporate Social Responsibility (CSR) Funds for Coronavirus (COVID-19) so it is a Corporate Social Responsibility (CSR) Activity.
The circular further stated, “the funds may be spent for various activities related to Coronavirus (COVID-19) under item nos. (i) and (xii) of Schedule VII relating to the promotion of health care, including preventive health care and sanitation, and disaster management. Further, as per General Circular No. 21/2014 dated 18.06.2014, items in Schedule VII are broad-based and may be interpreted liberally for this purpose.”
Therefore, with COVID-19 being declared a pandemic, and the rampant spread of the virus in the world and more specifically in India now, has called for relaxations in corporate compliance requirements and introduction of strategic policy decisions to limit the spread of the virus. In light of the same, the Ministry of Corporate Affairs (MCA) vide its circular has released an order pertaining to the clarifications on the spending of Corporate Social Responsibility (CSR) Funds for Coronavirus (COVID-19) so it is a Corporate Social Responsibility (CSR) Activity.
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