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Congress slams Centre for disallowing donation to CM relief as CSR

  •   Sun, Apr 12 2020 02:04:39 PM

New Delhi, Apr 12 (IANS): The Congress has slammed the Union Government for not allowing donations to the Chief Minister's relief Fund as Corporate Social Responsibility (CSR) expenditure.

Congress Chief Spokesperson Randeep Surjewala said, "To disqualify contributions to State Relief Funds and CM Relief Funds to Fight #COVID from CSR expenditure is a huge disservice by Modi Govt."

He said Covid-19 in India is to be fought unitedly and not in separate silos.

"Don't need battle of PM CARES V/S CM Relief Funds!" said Surjewala.

West Bengal Chief Minister Mamata Banerjee on Saturday in the meeting with the Prime Minister through video Conferencing had demanded that corporates be allowed to donate from their CSR account to the Chief Minister's emergency relief fund on the lines of such facilities given to them with regard to putting money in the PM-CARES Fund.

"We have raised objection to the present system of allowing corporates to spend money from their CSR account for the PM-CARES Fund whereas such facility was not granted for the CM's emergency relief fund. I called it bulldozing of the federal set up," Banerjee told mediapersons at the state secretariat Nabanna.

As per reports Union Government has clarified the aspects of cares funds.

According to corporate affairs ministry, contribution made to state disaster management committee will be considered as CSR.

But the contribution made to CM relief fund will not be considered as CSR as under the Companies Act of 2013, profitable companies are required to spend two per cent of average three years profit in CSR.
  

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Comment on this article

  • francis lobo, Mangalore

    Sun, Apr 12 2020

    SI felt very happy when Tata Sons and TATA group allocated Rs 1500 crore towards Covid treatment. Sudha Murthy of Infosys foundation directly sent material to the concerned from the trust fund. There are corporates who have directly done the work without contributing money either to the central or state government and spending it through their own company trusts. I feel sending money to central or state agencies is it worth and will it be used properly for COVID. I personally sent money to a trust which is helping people in COVID distress directly in South Kanara and handing over the goods to the migrants and needy.I also received a receipt for the tax exemption. My money is truly spent for a cause. You can also do this without waiting for the government to spend or donating to the government in your local community.

    Politicians will fight and later become friends. Did any party raise objections for the electoral bonds or when the salary of the MP, MLA's is raised? Even all parties fought together in the supreme court when a PIL was raised in the court. So do not believe your leaders , they are only election material.

    If you want to do real social service do it yourselves and God will bless you through these needy

    DisAgree Agree [8] Reply Report Abuse

  • smr, Karkala

    Sun, Apr 12 2020

    India’s corporate affairs ministry has clarified that companies cannot make financial contributions to any ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19′ and claim that as ‘corporate social responsibility’ (CSR) spending as per existing law.

    This clarification comes less than two weeks after the ministry of corporate affairs (MCA) said all corporate donations to Modi’s ‘PM CARES Fund’, which was set up to fight the COVID-19 pandemic, could be counted as CSR expenditure that most companies are mandated to make by law.

    Most companies are mandated by law to spend 2% of their average net profits (as calculated by the average of the preceding three financial years) on CSR duties.

    Since there is no transparency in ‘PM CARES Fund’, the non-BJP ruled state can be denied of funds.

    At present, companies with a net profit of Rs 5 crore or a net worth of Rs 500 crore or a turnover of Rs 1,000 crore have to spend 2% of their average net profits of the last three years as CSR.

    This is blatantly discriminatory and goes against the constitutional principle of federalism. States are at the forefront of this battle to contain the spread of Covid-19 and they are being strangulated by the Centre in this fight.

    Corner all ‘corporate social responsibility’ (CSR) money for his personally named fund & deny States - who are in the front-line of combating COVID-19 . This is absolutely called “Cooperative Federalism”.
    Amend Schedule 7 of Companies Act to permit State govt to access these funds which could save millions of lives.
    All corporate donations to Modi’s ‘PM CARES Fund’, which was set up to fight the COVID-19 pandemic, could be counted as CSR expenditure and excluding ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19′ is highly questionable?
    It clearly gives ‘PM CARES Fund’ wants to have monopoly on corporate donations.
    Jai Hind

    DisAgree [6] Agree [7] Reply Report Abuse

  • Avil Dev, Mangalore

    Sun, Apr 12 2020

    An irrelevant party in todays national scenario is as always 'slamming' with some non issues. Wonder what do they reap out of all this.

    DisAgree [16] Agree [12] Reply Report Abuse

  • Satya, Mangalore

    Sun, Apr 12 2020

    This is not a non issue. Even corona virus is politicized by the BJP by naming the relief material as Modi Kits. Remember it is public money and not from BJP's personal funds. The BJP funds are only used to buy MLA's. Why is money donated to the CM's relief fund not exempted from tax? Even that money will go towards corona relief. Does anyone from the BJP have a valid answer.

    DisAgree [12] Agree [17] Reply Report Abuse

  • Avil Dev, Mangalore

    Sun, Apr 12 2020

    You are in the wrong line my friend! Why does any body need to buy Cong MLAs. Scindia left because he was sidelined despite winning Madhya Pradesh for Congress. Scindia has enough money to buy half of Madhya Pradesh and cannot be bought. If all you said was true, RaGa would not have fled to Wayanad to win on Muslim votes.

    DisAgree [9] Agree [11] Reply Report Abuse

  • El En Tea, Mangalore

    Sun, Apr 12 2020

    You mean election was held on religion basis rather Nationality

    DisAgree [2] Agree [4] Report Abuse

  • R.Bhandarkar, Mangaluru

    Sun, Apr 12 2020

    Congress has more or less become a " Slam Bang " party these days.
    Raising what one may call Non Issues.....
    Whoever is leading it today .....better not play politics in these difficult times.
    Everyone is watching.
    .

    DisAgree [19] Agree [14] Reply Report Abuse

  • Ahmed, Mangalore

    Sun, Apr 12 2020

    It seems they have a valid point . Carefully read the article again with an unbiased mind. You can see what is going on .

    DisAgree [4] Agree [4] Reply Report Abuse


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