The Ministry of Corporate Affairs vide its General Circular No. 05/2021 dated April 22, 2021 has clarified that the spending of CSR funds for ‘setting up of makeshift hospitals and temporary COVID Care facilities’ is an eligible CSR Activity under item nos. i) and xii) of the Schedule VII annexed to the Companies Act, 2013 covered in promotion of health care, including preventive health care, and disaster management.
The MCA vide its General Circular no. 10/2020, issued last year, had already clarified that funds may be spent for various activities relating to COVID-19.
This Clarification shall boost support from corporate sector in the form of CSR funds to fight the pandemic via setting up temporary COVID Care facilities.
For details, please refer General Circular No. 05/2021 dated April 22, 2021:
PDF version is attached : https://www.dpncindia.com/blog/wp-content/uploads/2021/04/CSR-Covid-Spending-Clarification.pdf
The information contained herein is in summary form based on interpretation of General Circular No. 05/2021 dated April 22, 2021 issued by MCA. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.