No jail, CSR non-compliance should be a civil offence: Govt-appointed panel

Recent policy had provided for a 3-year jail term for violations

Companies News: Barely a week after Finance Minister Nirmala Sitharaman’s assurance to corporate entities to review the jail-term provision in the corporate social responsibility (CSR) law, a high-level committee has recommended that non-compliance with CSR norms be made a civil offence and moved to a penalty regime. This is a departure from the recent policy change which had provided for a three-year jail term for violating CSR norms.

The committee chaired by Injeti Srinivas, secretary, corporate affairs ministry, submitted its recommendations to Sitharaman on Tuesday, suggesting that CSR expenditure be made tax deductible, in order to incentivise CSR spending by companies. “There is a need to address the distortions in CSR spending arising from prevalent tax structure.”

It has suggested a provision to carry forward unspent CSR balance for three to five years. “We are glad that our voices have been heard. It is a step in the right direction,” said Rumjhum Chatterjee, chairperson, National Committee of CSR, Confederation of Indian Industry….Read More

Trust deficit prevails in the board, says IndiGo’s independent director

In his mail to the former Securities and Exchange Board of India (Sebi) chairman, Khanna also questioned Damodaran’s call for meetings of the board

IndiGo’s independent director Anupam Khanna has called upon chairman M Damodaran to come up with “confidence-building measures” to remove the “trust deficit” that has built up in the board of India’s largest airline.

In his mail to the former Securities and Exchange Board of India (Sebi) chairman, Khanna also questioned Damodaran’s call for meetings of the board, as well as audit and remuneration committees after IndiGo‘s annual general meeting (AGM) later this month, to resolve governance issues. The mail was shared by co-founder Rakesh Gangwal on August 7.

Damodaran’s suggestion was against what was proposed by Gangwal, who had alleged that the new proposed structure of the board will only add to the powers already enjoyed by InterGlobe Enterprises (IGE), owned by fellow co-founder Rahul Bhatia. And if the proposed structure was cleared at the AGM, it would lead to further governance issues, Gangwal had argued. He wanted the steps to be taken before the AGM…