Companies asked to specify details of CSR expenditure

MIDC issues letter after complaints of misuse of CSR funds

Aurangabad: The Maharashtra Industrial Development Corporation (MIDC) has sent letters to companies having a turnover above Rs 500 crore in the Aurangabad division to specify how much and where have they spent their Corporate Social Responsibility (CSR) funds. The orders were issued after complaints were raised with the industries department about misuse of CSR funds.

There are 162 large and 2866 medium and small companies in Waluj, while 163 large enterprises are operating in Chikalthana industrial belt, 89 in Shendra MIDC and 46 large companies are operating in Paithan MIDC. These companies have a turnover of several crores every year. The companies paid an amount of Rs 631 crore in GST to the Central government in 2021-22. An average of Rs 10,000 crores worth of goods are exported to various countries. Two percent of the total profit of the companies can be spent as CSR funds for social work or can be given to a voluntary organization. The funds are often used for construction of primary health centers, Zilla Parishad school classrooms, tree plantations. irrigation works and other works in rural areas. However, complaints regarding misuse of CSR funds were raised in a review meeting held by industries minister Uday Samant in Auric a few months ago. The minister had directed the regional officers of MIDC to submit a report on how and where these funds are spent. MIDC has sent a letter to companies with a turnover of more than Rs 500 crores seeking information about their CSR funds. Sources said that MIDC has given letters to around 18 companies.