Take action against companies not contributing towards CSR funds: Bombay High Court Nagpur Bench to Divisional Commissioners, District Collector

The Bombay High Court at Nagpur on Wednesday issued directions to the State government and local authorities while dealing with issues pertaining to the COVID-19 management in the city of Nagpur in the suo motu Public Interest Litigation (PIL) registered by the Court. (Court on its own motion v. Union of India)

. Action against companies unwilling to give Corporate Social Responsibility funds

The Divisional Commissioner informed the Bench of Justices SB Shukre and AG Gharote about the companies which were unwilling to contribute towards the CSR funds required for management and treatment of COVID.

Citing the provisions of Companies Act, 2013 for dealing with unwilling and defaulting companies, the Bench directed the Divisional Commissioners of Nagpur and Amravati and other District Collectors to invoke the sections against the erring companies as per the statutory provisions.

If any directions are required in this regard, the Bench offered to pass a detailed order before the next date after the factual position is placed before the Court for their consideration.

. On the issue of supply of Mucormycosis drugs

The Bench had enquired about the measures taken to tackle the prevalence and spread of fungal infections.

While the Court observed there was a shortage in availability of drugs for treating the infections, the Court urged the Centre and State government to take immediate steps to increasing production capacity of drugs by the Indian manufacturers.

"If immediate measures are not taken, these infections, though internationally stated to be rare infections, may take on a severe form of an epidemic in India" the Bench said.

Terming it a "war-like situation" the Bench hoped that these grievances would be positively answered by the Centre.

"If not, further loss of lives of few more patients maybe a fait accompli" the Court said.

. The Court was informed of some private 'public-spirited' importers who wished to come forward to extend their helping hands in importing the raw materials required for making of the drugs.

They, however, faced an obstacle in respect of the delay which occurred at the level of Drugs Controller General of India (DGCI) in granting registration to private players.

The Court directed the Centre to expeditiously take a decision on this issue keeping the 'citizen patients' in focus.

. Direction to State to contribute towards oxygen generation plants

The Bench was informed that a hospital - Lata Mangeshkar hospital - was attached to an Institute of Medical Sciences and Research Centre.

The Institute was not able to invest in the oxygen generation plant as they had not yet received the fees which they were entitled to receive from the state government towards scholarship schemes.

The State government responded that since the funds were diverted for dealing with COVID-19 pandemic they were not in a position to release the reimbursement fees.

The court, however, directed the State to release amount of Rs.2.5 crores to the students of the College.

After the students accounts are credited, the Court directed the Institute to make funds available for setting up of the oxygen generation unit at the Lata Mangeshkar hospital.

The College was also directed to refund the amount back to the District Covid Fund by the Collector within four weeks of release of Rs.2.5 crore which shall, later on, be used for Covid cause.

. [Read order here]

Take action against companies not contributing towards CSR funds: Bombay High Court Nagpur Bench to Divisional Commissioners, District Collector

Neha Joshi

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