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Companies Act Amended By Modi Govt

By FnF Correspondent | PUBLISHED: 27, May 2020, 15:46 pm IST | UPDATED: 27, May 2020, 15:46 pm IST

Companies Act Amended By Modi Govt  Delhi, May 27: In a Gazette notification on Wednesday, the government has permitted the PM CARES fund to receive Corporate Social Responsibility (CSR) funding from corporates by incorporating an amendment in the Companies Act.

Basically, all the contributions made by corporates to the PM CARES in the past few months will be categorised under CSR contributions.

The Union Ministry of Corporate Affairs has notified the change on Tuesday stating that sub-section (1) of section 467 of the Companies Act, 2013 has been amended to include PM CARES fund (Prime Minister's Citizen Assistance and Relief in Emergency Situations Funds) eligible to receive CSR funding from corporates.

It is to be noted that the donation to Prime Minister's National Relief Fund was only eligible for CSR funding.

The current notification clearly mentions inserting PM Cares fund in the Act. "In Schedule VII, item (viii), after the words 'Prime Minister's National Relief Fund', the words 'or Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)' shall be inserted," reads the notification.

The proposed amendment will come into effect for corporates retrospectively from March 28, the same day when the fund was established to provide relief to people affected by any kind of emergency or distress situation.

The Prime Minister’s Office has announced its first allocation from the Fund of Rs 3,100 crore towards Covid-19 relief operations including funds for ventilators, migrant workers and vaccine development.

The PM had also announced emergency financial aid of Rs 1,000 crore to West Bengal and Rs 500 crore to Odisha to cover the damages in the state by Cyclone Amphan.