Members of the standing committee of finance are not happy about the fact that corporate social responsibility (CSR) has not been made mandatory is the Companies Bill. Several queries have been raised by the MPs and ministry of corporate affairs (MCA) has been given 15 days to respond

A crucial meeting took place between the members of standing committee of finance and officials of MCA on the Companies Bill today. It is learnt that the officials of MCA were bombarded with questions by the MPs. They asked MCA officials as to why fresh changes had been made to the Companies Bill after the review had been undertaken by the standing committee of finance. It had also made certain recommendations. As many as 22 fresh changes have been made and the ministry believes that it was necessary in order to make the bill futuristic.

The MPs also raised concerns on the fact that CSR has not been made mandatory. They said that there will be no companies who will actually fulfill these CSR requirements unless the provision is made mandatory. Some members also felt that the new private placement clause which has been added - clause 42 is unfairly targeting unlisted companies.

MCA has been asked to submit its reply to the questions raised by the MPs within 15 days and a meeting will be held again. It appears that there are conflicting interests at work, hectic lobbying by industry and politicians. Even though there are assurances that the bill will make it to the budget session of the Parliament, there is a question mark on that.