₹100 Crore CSR Gap: Himachal Pradesh High Court Exposes State–Corporate Failure in Disaster-Hit Himachal
Shimla, April 24, 2026: A staggering ₹10,017.47 lakh shortfall in CSR funds for financial year 2025–26 has come under sharp judicial scrutiny, with the Himachal Pradesh High Court exposing serious lapses in enforcement under Section 135 of the Companies Act, 2013.
Hearing CWPIL No. 90 of 2025 on April 23, 2026, a Division Bench of Chief Justice G.S. Sandhawalia and Justice Bipin C. Negi recorded that despite its earlier order dated December 17, 2025, there is little movement on ground.
The court said, “no lessons have been learnt, nor has any further action been undertaken at the highest level.”
The affidavit filed by the State Industries Department lays bare the loopholes and how actually the government industry system is operating in the BBN, Una, Kala Amb belt, Himachal’s industrial corridors for which people of Himachal are now seeking complete answers.
But this Data is incomplete. Companies have not disclosed CSR spending. Unspent funds remain unaccounted. Even statutory CSR filings are unclear. The process of compliance verification by the Ministry of Corporate Affairs is still ongoing.
The Bench noted that Himachal Pradesh has faced repeated disasters between 2023 and 2025, yet funds meant for relief and rehabilitation remain blocked. It observed that this reflects disregard of statutory provisions at multiple levels at the cost of citizens.
Amicus Curiae Deven Khanna pushed for a structured mechanism. CSR funds must be routed through disaster management authorities.
Full disclosure of companies’ CSR obligations for the last three years has been sought — including actual spending, unspent amounts, CSR-2 filings, and penalty status.
The court also sought clarity on unspent CSR funds of PSUs like NTPC Limited.
In a hard observation, the proceedings have brought out indications of a deep-rooted nexus between erring companies and the state political class, where successive governments, cutting across parties, aggressively push industrial corridors but fail to enforce CSR compliance on the same entities.
The Bench indicated that the forthcoming report from the Union government could unearth deeper layers, suggesting that the CSR fund gap may be far higher than what has surfaced so far.
High court has ordered Chief Secretary must file a fresh affidavit on policy, district-wise disaster assessment, and identification of works — water schemes, hospitals, schools — for CSR funding.
The court has warned that action must be initiated against defaulting companies before the next hearing on June 24, 2026, failing which exemplary costs may be imposed on both the Union and the State.
In a state battered by floods and landslides, the High Court has found that funds exist on paper, but on the ground, Himachal is still waiting.
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