MCA amends CSR Schedule VII of Companies Act, 2013 and Companies (CSR Policy) Rules, 2014


MCA amends CSR Schedule VII of Companies Act, 2013 and Companies (CSR Policy) Rules, 2014

Date - 27th of February 2020

Initial text to the item (ix) of Schedule VII to the Act read as follows


Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government [Notification no. G.S.R 130(E)](1)

Date - 11th of October 2019

Amendment vide notification no G.S.R. 776(E) dated 11th October 2019 substituted text to the item (ix) of Schedule VII to the Act read as follows


Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public-funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Biotechnology (DBT)(3), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs) (2)

Date - 24th of August 2020

Amendment vide notification no G.S.R. 525(E) dated 24th August 2020 substituted text to the item (ix) of Schedule VII to the Act read as follows


(a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and


(b) Contributions to public-funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs). (4)

Further, Ministry of Corporate Affairs (MCA) has issued amendment vide notification no G.S.R. 526(E) dated 24th August 2020 in companies (CSR Policy) Rules, 2014 and inserted proviso in rule 2, in sub-rule (1), in clause (e) following activities as CSR Activity


Provided that any company engaged in research and development (R&D) activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to #COVID19 for financial years 2020-21, 2021-22 and 2022-23 subject to the conditions that-


(i) Such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the Act.


(ii) Details of such activity shall be disclosed separately in the Annual Report on CSR included in the Board’s Report”.


Further, In the said rules, in rule 4, in sub-rule 1, the words “excluding activities undertaken in pursuance of its normal course of business” shall be omitted.


Furthermore, In the said rules, in rule 6, in sub-rule (1), —

(i) first proviso shall be omitted;

(ii) In the second proviso, the word “further” shall be omitted.(5)

 

Relevant Notifications:-

(1) The Schedule VII to the Companies Act, 2013 was brought into force with effect from the 1st April, 2014 and was amended (effective from the 1st April, 2014) vide notification number G.S.R. 130(E), dated the 27th February, 2014