SC rejects Moitra's plea challenging exclusion of contributions in CM Relief Fund from CSR
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SC rejects Moitra's plea challenging exclusion of contributions in CM Relief Fund from CSR

Agency News

New Delhi, May 5: Supreme Court on Tuesday refused to entertain a plea filed by Trinamool Congress MP Mohua Moitra, challenging the validity of Ministry of Corporate Affairs (MCA) circular of not counting the contributions towards Chief Ministers Relief Fund as a part of Corporate Social Responsibility (CSR).

A bench of the apex court, headed by Justice Ashok Bhushan and also comprising Justices Sanjiv Kishan Kaul and BR Gavai, rejected the plea on the grounds that the petitioner was a Member of Parliament not an aggrieved company or person. The MCA on April 10 issued a circular which said contributions to Chief Ministers Relief Fund and State Relief Fund for Covid-19 cannot be claimed as a part of CSR spending by a company.

Sundaram, appearing for Moitra, said it is not valid to consider contribution of firms as CSR if given to the central government but not when given to state government. He said there is no such provision in Company Act and it has come through a circular. Sundaram also said that allowing contribution to Centre fund as CSR but not for state fund, is a violation of Article 14 of the Constitution.

The bench underlined that the petitioner, in her plea, had challenged the circular not the law. Moreover, the entity is not a company but an MP. The court asked the petitioner Moitra to withdraw her plea as it failed to find any merit and also advised her to raise the matter in Parliament.

The West Bengal MP, subsequently, withdrew her petition. (UNI)

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