India's Journey with Corporate Social Responsibility – What Next?

One of the causes for raised eyebrows to the Companies Act, 2013 is Section 135. The provision mandates companies meeting certain requirements to compulsorily contribute to corporate social responsibility (CSR) activities, or explain the failure to do so. While this has been the subject of an ongoing debate ever since the provision was suggested in 2009, the provision in question has been met with considerable resistance from the industry. Arguments against Section 135 range from specific critiques of the semantics of the statute to critiques of the failure of India as a welfare state altogether. What this paper seeks is to attempt a definitive outline of the CSR law and practice in India, its roots in Hinduism, Buddhism and Islam, Gandhian philosophies and the pre 2013 position on CSR. It shall also attempt to provide a critical analysis of Section 135 of the Companies Act, 2013 and how the provision may be ignored, or worse - misused.