CSR Eligibility Confirmation – Village Road Construction

[Deeksha Nagal]

Dear professionals,

We seek your professional opinion on the CSR eligibility of the following proposed project under the Companies Act, 2013.

Proposed Project:
Construction of an approach road from the main road to a Village.

Project Details:

• The road will be a public road for the benefit of the villagers.
• The project will be undertaken through the Gram Panchayat.
• The road will remain under the ownership/control of the Gram Panchayat and will be open for use by the general public.
• The project is not intended primarily for the benefit of the Company's business operations.

Kindly confirm whether the above expenditure can be considered as an eligible CSR activity under Schedule VII of the Companies Act, 2013, particularly under the category of "Rural Development Projects," and advise if there are any specific conditions, approvals, or documentation (such as an MoU with the Gram Panchayat, Board approval, CSR Committee recommendation, etc.) that should be complied with before implementation.

Your guidance will be highly appreciated.

[Arun Kumar Maitra]

The proposed construction of an approach road to a village is fully eligible as a Corporate Social Responsibility (CSR) activity under Item (x) of Schedule VII of the Companies Act, 2013 ("Rural Development Projects").

This position is reinforced by the Ministry of Corporate Affairs (MCA) General Circular No. 21/2014, which clarifies that the entries in Schedule VII must be interpreted liberally. Since your project is directed at a public asset via a local government body and lacks commercial self-interest, it fulfills all core statutory requirements.

CA CS Arun Kumar Maitra

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[Deeksha Nagal]

Noted.

Thank you for your guidance. 

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[dipesh goyal]

Dear Team,

The Private limited Company had issued the secured NCDs in 2018 to Private limited company which has 100% foreign holding. 

But now, private limited want to change the terms from secured to unsecured for said NCDs. 

So my question is this allowed under companies act ? Or we will default under deposit sections. 

Regards,

Dipesh Goyal

09773162335

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