India is the first and only country in the world which has mandated Corporate Social Responsibility (CSR) for certain corporate entities. Inclusion of CSR in the statue is a unique provision in the world. In simple terms CSR is a company’s sense of responsibility towards the community and environment in which it operates. The Concept of CSR has been imbibed by the Indian society from the very beginning and CSR aligns business operations with societal values.

Many of the leading corporates across the world have realized the importance of being associated with socially relevant causes as a means of enhancing their corporate image and reputation.

Provisions of section 135 and the Rules thereof govern the provisions with regard to applicability and compliance of provisions of Corporate Social Responsibility

Based on the recommendations of the High level Committee which was set up in the year 2018 under the Chairmanship of Shri Injeti Srinivas, suitable amendments were brought to the provisions of Section 135 and to the Rules thereof. These amendments have been brought into force effective January 22, 2021.

The aforesaid Rules were further amended under Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022 which came into force effective September 20, 2022 (“Amendment Rules”)

The brought about by the Amendment Rules are on the following:-