Tech Mahindra Group firm Comviva fined Rs 1 lakh for delay in transferring CSR funds

New Delhi: Tech Mahindra Group firm Comviva has been penalized Rs 1 lakh for the delay in transferring unspent corporate social responsibility (CSR) obligation to the Prime Minister's National Relief Fund. The penalty was imposed by the Ministry of Corporate Affairs' Regional Director for the Northern Region, who ruled against an appeal filed by Comviva against the order of the Registrar of Companies.

Inadvertent Delay

According to the regulatory filing, there was an inadvertent delay due to technical reasons in transferring the unspent amount related to the CSR obligation for the financial year ended March 31, 2021, to the Prime Minister's National Relief Fund within the prescribed period of six months from the financial year's expiry, as stipulated by the Companies Act, 2013.

Penalty Imposed

The penalty of Rs 1 lakh was imposed on Comviva Technologies Limited (Comviva) in connection with the appeal filed by the company before the Hon'ble Regional Director, Northern Region, against the adjudication order of the Registrar of Companies, NCT Delhi and Haryana, dated May 17, 2023. Tech Mahindra disclosed this information in a filing on Saturday.

Depositing Penalty Amount

The filing further states that Comviva is in the process of depositing the penalty amount with the Ministry of Corporate Affairs. The company has acknowledged the penalty and is taking steps to ensure compliance with the CSR regulations in the future.

The penalty imposed on Comviva serves as a reminder to companies of the importance of timely compliance with CSR obligations. Companies must have robust systems in place to ensure that CSR funds are utilized effectively and transferred to the designated accounts within the stipulated timeframe. By adhering to CSR regulations, businesses can contribute to social welfare and demonstrate their commitment to responsible corporate practices.