CSR activities and Tobacco Industry-MCA Clarification
There is an inherent contradiction in corporate social responsibility and tobacco industry. COTPA aims to prohibit advertisement and regulation of tobacco business in India.
This circular is aimed to discourage tobacco industry from earning goodwill through Corporate Social Responsibility (CSR) activities,
General Circular No. o5/2016
Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing,
Shastri Bhawan, Dr. R. P. Marg
New Delhi -110 001
Dated: 16th May, 2016
All Regional Director,
All Registrar of Companies,
Subject: Clarification with regard to provisions of Corporate Social Responsibility under section 135 of the Companies Act, 2013.
In continuation to this Ministry’s General Circular 01 of 2016 dated 12.01.2016, it is clarified that companies, while undertaking Corporate Social Responsibility activities under provision of the Companies Act, 2013, shall not contravene any other prevailing laws of the land including Cigarettes and other Tobacco Products Act (COTPA), 2003.
2. This issues with the approval of Competent Auothirty