The MCA has commenced the operation of section 21 of the Companies Amendment Act, 2019 with effect from 22 January, 2021. The amendment provides that if a company fails to spend the CSR amount during a year, the Board shall specify the reasons for not spending the amount in its CSR report.
The Board shall also transfer such unspent amount to as contribution to the prime minister’s national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)] or any other fund set up by the central government for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women within a period of six months of the expiry of the financial year.
