The Ministry of Corporate Affairs (“MCA”) has issued Circular no. 05/2021 dated April 22, 2021 (“Circular”) clarifying that spending of CSR funds for ‘setting up makeshift hospitals and temporary COVID care facilities’ would be considered an eligible CSR activity under item number (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care and disaster management, respectively.
The MCA had, by way of an earlier circular dated March 23, 2020, clarified that spending of CSR funds for COVID-19 would be an eligible CSR activity.
Please find a copy of the Circular dated April 22, 2021 here.
This update has been contributed by Suchita Ambadipudi (Partner) and Smriti Tripathi (Associate).
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