Govt likely to water down conditions for prosecution under CSR rules

The move to dilute prosecution norms could be viewed distinctly from the govt's efforts to tighten the screws on CSR

The ministry of corporate affairs is likely to water down conditions for prosecution under corporate social responsibility (CSR) rules. 

It is planning to drop prosecuting companies for not complying with CSR norms unless they are repeat offenders, said senior ministry officials.

The Companies Act need not be amended for the purpose and merely a notification will be enough, officials said. 

A policy note, which Business Standard has reviewed, floated within the ministry says, “Once offence is made good, no fruitful purpose would be served in pursuing prosecution as the policy intent of the ministry has been to make companies compliant rather than penalise