Regulatory Governance Of Ongoing CSR Projects And Unspent CSR Funds Under The Companies Act, 2013
- IJLLR Journal
- Mar 19
- 1 min read
Vini Saxena &1Dr. Sunil Kumar Pandey
ABSTRACT
Corporate Social Responsibility (CSR) has become an integral component of contemporary corporate governance frameworks across the world. India occupies a distinctive position in this field as it is among the few jurisdictions that impose statutory CSR obligations through company law. Section 135 of the Companies Act, 2013 introduced mandatory CSR expenditure regime requiring qualifying companies to allocate a prescribed percentage of their profits toward socially beneficial activities. While the legislative framework initially focused on annual CSR spending, practical challenges soon emerged in relation to the implementation of long-term development initiatives that require multi-year planning and sustained investment. To address these operational constraints, regulatory amendments introduced the concept of ongoing CSR projects and established a structured mechanism for the management of unspent CSR funds. These reforms significantly reshaped the governance architecture of CSR implementation by introducing enhanced financial accountability and monitoring obligations. This paper undertakes a doctrinal analysis of the legal framework governing ongoing CSR projects under the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014. It examines statutory provisions relating to multi-year CSR initiatives, the regulatory treatment of unspent CSR funds, and the governance responsibilities imposed upon corporate boards and CSR committees. The paper also analyses the broader jurisprudential foundations of corporate responsibility within Indian law and identifies regulatory challenges affecting CSR implementation. The study concludes by proposing policy measures aimed at strengthening transparency, accountability, and impact assessment within India’s CSR regulatory framework.
Keywords: Corporate Social Responsibility, Companies Act 2013, CSR Governance, Ongoing CSR Projects, Unspent CSR Funds.
