TLI Staff
New Delhi: Flat owners’ federation of Ghaziabad seems to have taken a lot of inspiration from government move to reward corporate entities for doing their best bit for the society.
Speaking at the annual convocation of Jamia Millia Islamia (JMI) in New Delhi, the President of India, Ram Nath Kovind had recently said that in order to connect every section of the society with development, University’s Social Responsibility (USR) like Corporate Social Responsibility (CSR) needs to be emphasized.
Now, taking a leaf from the President’s idea, the flat owners association has come up with even more innovative suggestion. It has appealed to all the local residents to visit commercial establishments, schools, colleges and bank branches and urge them to invest 2 per cent of their income on improving social infrastructure of the locality.
The officer bearers of the federation have resolved to ensure that organizations in their areas do not find excuses to shrug off their responsibilities.
“We will not allow these organizations to pass the buck on their headquarters when it comes to spending a part of their income on social development. They can no longer use resources locally and put the onus of CSR on their head offices. This is not logical at all and we will now not let this happen,” the office bearers have said in a joint statement.
“They earn Rs 1 crore or Rs 1,000 crore, at least 2 per cent of their profit must be spent on improving the conditions of the poor,” they said.
Under the Companies Act, certain class of profitable companies is required to spend 2 per cent of their three-year average annual net profit towards CSR activities in a particular financial year.
Since financial year 2014-15, profitable companies are estimated to have spent more than Rs 10,000 crore every year.
The CSR provisions mandating companies to spend part of their profit towards social development came into force from April 1, 2014.
The flat owners’ association of Ghaziabad led by its president Tejandra Pal Tyagi participated in the recent National CSR Awards ceremony held in the national capital. Tyagi claimed that India is the first country where spending 2 per cent of profits by companies is mandatory.