MCA Amends Scope of CSR Activities in light of COVID-19 Pandemic

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Sep 30, 2020

MCA Amends Scope of CSR Activities in light of COVID-19 Pandemic

MCA, by a Notification dated August 24, 2020, has amended Rule 2(1)(e) of the Companies (Corporate Social Responsibility) Rules, 2014 (‘CSR Rules’). Rule 2(1)(e) of the CSR Rules provides that the corporate social responsibility (‘CSR’) policy of a company should relate to activities undertaken by the company as specified in Schedule VII and are required to exclude activities which are undertaken by the company in the normal course of its business. Pursuant to the amendment, the MCA has introduced a carve out to this requirement whereby any company engaged in research and development activity of new vaccines, drugs and medical devices in its normal course of business may undertake, for CSR purposes, research and development activity of new vaccines, drugs and medical devices related to COVID-19 for the financial years 2020-21, 2021-22 and 2022-23 subject to certain specified conditions.

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