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

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