Enforcing CSR In India: A Critical Review Of Section 135
- IJLLR Journal
- Dec 4, 2025
- 2 min read
Soumyadeep Paul, UILS, Chandigarh University
Dr. Ajaz Afzal Lone, UILS, Chandigarh University
ABSTRACT
Section 135 of the Companies Act, 2013 represents a landmark development in Indian corporate law by converting Corporate Social Responsibility (CSR) from a voluntary practice into a statutory obligation. This article offers a purely legal examination of the mandatory CSR framework, focusing on the structure, intent, and functioning of Section 135, the CSR Rules, and related amendments. It analyses how the law conceptualises CSR duties, the role of corporate boards, the nature of permissible activities under Schedule VII, and the evolution of compliance requirements through successive legislative interventions.
The study highlights that the legal framework, while comprehensive, contains several conceptual and procedural ambiguities. Issues arise in interpreting Schedule VII, determining the scope of “ongoing projects,” regulating implementing agencies, and understanding the extent of board responsibility for CSR decisions. The shift towards penalties, mandatory transfer of unspent CSR amounts, and enhanced reporting obligations under the 2019, 2020, and 2021 amendments has strengthened the enforcement architecture but also raised new questions about proportionality, regulatory overreach, and the balance between corporate autonomy and statutory compulsion. Judicial and administrative interpretations by the Ministry of Corporate Affairs further reveal the evolving nature of CSR jurisprudence in India.
This article argues that the effectiveness of Section 135 ultimately depends on the legal clarity, coherence, and enforceability of its provisions. Strengthening statutory definitions, standardising compliance procedures, improving guidance on Schedule VII, and ensuring consistency in regulatory interpretations can enhance predictability and reduce litigation. The conclusion emphasises that while Section 135 is a bold legal experiment, its long-term success requires a more refined and legally robust framework that promotes meaningful compliance without undermining corporate freedom
Keywords: Corporate Social Responsibility; Section 135; Companies Act, 2013; CSR Rules; Legal Compliance; Statutory Enforcement.
