Sattva Consulting
A Note on the Recent Amendments under the Companies Act 2013
A Note on the Recent Amendments under the Companies Act 2013
January 29, 2021

A Note on the Recent Amendments under the Companies Act 2013

On 18th March 2020, the Ministry of Corporate Affairs invited public comments on the Draft Companies (Corporate Social Responsibility Policy) Amendment Rules 2020. The Draft rules projected the Government’s shift from a ‘comply or explain’ stand towards ‘comply or pay’. Based on the public feedback, the Government recently amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Section 135 of the Companies Act, 2013, effective 22nd January 2021 (Amendments).

Incorporating many recommendations put forth by the High-Level Committee on CSR 2018, the Amendments:

(a) implicitly highlight the Government’s deeper intent to push corporates to be more strategically involved with the CSR initiatives and on an ongoing basis
(b) explicitly lay out CSR functions and responsibilities of the corporates, and
(c) implement the Government’s intention to penalise corporates breaching CSR provisions through monetary penalties.

We have created a note that breaks down some of the key questions and implications of the recent amendments to the Companies Act 2013, some macro takeaways and what these amendments could mean for companies and non-profits.

You can also download and share the note from the link on the left of this page.

Disclaimer: This document is an interpretation of the recent amendments to the Act and its implications. It is not a legal document.


Sattva has been working with various corporates, non-profits and social organisations to help them define their social impact goals. Our focus is to solve critical problems and find scalable solutions. We assist organisations in formulating their long-term social impact strategy by strategically aligning with business to provide meaningful solutions to social issues.

If you have any inputs, comments or suggestions, please write to us:


Thank you for your interest in Sattva.

Do share your contact details with us and you will receive a copy directly to your mailbox!