Spending of Funds for COVID-19 now eligible for CSR Activity

MCA issued General Circular No. 10/2020 on 23rd March 2020 providing clarification on the spending of CSR funds for COVID-19. Keeping in view the spread of Novel Coronavirus (COVID-19) in India, its declaration as a pandemic by the World Health Organization (WHO), and the decision of the Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible for CSR activity of the Companies. The same would be covered in clause (i) and (xii) of Schedule VII to the Companies Act, 2013 relating to the promotion of health care, including preventive health care, and sanitation, and disaster management. Last Updated: 24^th March 2020 This article is contributed by:  Luv Malhotra Senior Manager, Legal