CSR expenditure can be made for CM relief funds, not only to PM CARES: Vivek Tankha

Companies can contribute under Corporate Social Responsibility (CSR) to chief minister's relief funds and not only to PM CARES, senior Congress leader Vivek Tankha said, and asked the states to tap this resource to overcome financial burden in leading the fight against coronavirus.

"To counter the misinformation being spread about ineligibility of CM relief funds for CSR, you may consider making an appeal to industry, to donate to the state CSR funds, by clarifying the position of the state qua CSR funding," he said in a letter to all chief ministers of the states.

Tankha said the Companies Act, 2013, mandates that the private sector discharge a sense of social responsibility.

He said Schedule VII of the Companies Act lists out the various activities that are eligible for CSR funds from industry, and "I believe states should tap this resource".

Tankha asked them to "ignore" the frequently asked questions (FAQs) and a circular issued last month by the Ministry of Corporate Affairs that