Act tough against companies unwilling to share CSR funds for Covid: Bombay HC

NAGPUR: Upset over the failure of industries from Vidarbha to share their CSR funds for Covid-19 management, the Nagpur bench of Bombay high court on Wednesday orally directed the Maharashtra government to wield the stick of law to act against them by cancelling their registrations.
The rebuke came after amicus curiae Shreerang Bhandarkar, while quoting affidavits filed by the divisional commissioner, pointed out that many companies in the region have refused to part with their CSR funds and are not cooperating.
Flaying the commissioner, the judges orally asked him why he needs HC’s directives every time when there is a provision in the Companies Act, 2013, to punish such erring manufacturers if they violate the rules.
“We must point out that there are specific provisions in the Act to deal with unwilling, defaulting and non-responsive companies under sections 136, 450, 454 and others. Both divisional commissioners and collectors of all Vidarbha districts should do a thorough study of these provisions and apply them against such erring companies. If any directives are required, a correct and detailed factual position should be placed before the HC so that we could take a decision in the next hearing,” they said.
While hearing the suo motu PIL where Bhandarkar was pleading as amicus curiae along with Nidhi Dayani, the justices noted that the commissioner’s affidavit were filed about two weeks ago and they weren’t aware of the present position till date. “It’s not known as to how many among willing companies have actually sent their contributions.”
Earlier, government pleader Ketki Joshi informed that the National Thermal Power Corporation (NTPC) had consented to donate CSR funds of Rs3 crore through its Mouda plant for Covid-19 management. The bench directed it to deposit the cheque with the collector before June 9, fixed as the next hearing date.
The judges further asked MSETCL’s CSR committee to take a decision on releasing its funds within a week. The move came after MSETCL counsel DM Kale informed that their CSR panel would soon take a decision after its meeting. He added that a policy decision was already taken in this regard and, therefore, not much time would be required.
“This submission, however, does not give any date within which the CSR Committee would be taking its decision. Considering its submissions which are quite vague at present and also considering the situation of emergency, we direct the MSETCL to inform about its decision within a week,” the judges said.
‘Expand scope of task force to all fungal infections immediately’
The HC further directed the divisional commissioner to expand the scope of a task force to all fungal infections with immediate effect. Currently, it is confined to only deal with mucormycosis cases.
“We also direct him, collector and NMC commissioner to extend all the help to make available the requisite manpower and paraphernalia for increasing check-ups and survey of all city hospitals. It would help find out any deficiency, lacunae, and other incidental factors which contribute to spread of fungal infections. The task force, upon completing such surveys and check-ups, shall report within two weeks.”
IMA, VHA & govt to create awareness on hygiene
The HC has appealed to Indian Medical Association (IMA), Vidarbha Hospitals Association (VHA) and the Maharashtra government to devise a procedure for improving the state of cleanliness and hygiene in hospitals and create awareness among the patients, doctors, nursing staff and other persons concerned. “There’s a need to establish effective and regular machinery for keeping check on all the hospitals — government or private — regarding the conditions of cleanliness and hygiene.”