17% of corporate social responsibility fund unspent among listed companies

Listed companies spent close to Rs 83 out of every Rs 100 earmarked for corporate social responsibility (CSR) projects. The proportion of unspent capital has been on the decline since a few years. 

The government has now introduced changes that will reportedly require companies to transfer CSR funds to a ring-fenced escrow account, and then transfer the unspent amount to a government fund, which will then be used for public welfare. 

Further, the government is considering the option to punish directors of companies that do not spend the required amount in CSR activities, as mandated by law.

An analysis of data from corporate