General Circular No. 06/2018
F. No. 08/05/2018-CSR
Governement of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing , Shastri Bhawan,
Dr. R.P. Road , New Delhi-110001
Subject: Clarification with regard to provisions under section 135(5) of the Companies Act, 2013
I am directed to say that concerns have been raised b y some stakeholders regarding non-compliance of the first proviso tp sub section (5) of Section 135 of the Companies Act, 2013, which lays down that the company shall be given preference to the local areas and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility Activities.
2. It is retirated that the above provision has to be followed in letter and spirit.