ROC Haryana has ruled that failure to transfer an unspent CSR amount within six months is a violation, triggering substantial penalty proceedings amounting to over Rs. 37 lakh.
Penalty for Delayed CSR Amount Transfer
ROC Haryana has imposed a substantial penalty exceeding Rs. 37 lakh for the delayed transfer of unspent Corporate Social Responsibility (CSR) funds beyond the statutory period of six months post fiscal year end.
This ruling underscores the imperative for companies to comply with CSR requirements to avoid significant financial repercussions. The action is part of a broader scrutiny of compliance with CSR norms.
Legal practitioners advising corporates on CSR compliance must ensure their clients are aware of the timelines and obligations under CSR regulations to prevent such violations.
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