Companies expected to use CSR funds for Covid-19 relief work: Bombay HC

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The Nagpur Bench of Bombay High Court noted that the response it has received from different companies in Vidarbha region about availability of Corporate Social Responsibility (CSR) funds for Covid-19 relief work “is not encouraging”.

Justices Sunil B. Shukre and Avinash G. Gharote said that they made attempts with a view to strengthen the health care system in Vidarbha region, especially in view of the pandemic. It expected not only from the State Government, but also from public and private sector companies to make their contributions to the noble cause.

The Bench observed, “While response from some of the public sector companies like WCl/ CIL and MOIL has been so far extremely good, the same is not with the private sector companies. We have also not received any response from such public sector companies like NTPC, MAHAGENCO (Power Generation), MAHAGENCO (Power Transmission) and MSEDCL. There are also big companies like Tirora Thermal Power Station, Gondia and various cement manufacturing plants at Chandrapur.”

Further, the court noted that when the companies are under a statutory obligation to maintain CSR funds under section 135 of the Companies Act, they are expected to utilise the same when they are called upon to do so.

“…in our opinion, there could have been no better opportunity than the present time and present cause to discharge such duty. If these companies have not so far responded to the call given by this Court, this Court would have to issue necessary directions for making these companies wake up and answer the call of their duty”, said the court.

In light of this, the Bench issued some directions and ordered the Divisional Commissioners of Nagpur and Amravati to obtain entire information related to the availability of CSR funds with all the companies operating in their respective divisions.

“The Divisional Commissioner shall call for this information through the concerned Joint Director, District Industries Centre and verify through the Joint Director the correctness of the information so provided by these companies to him. We further direct the Divisional Commissioner, Nagpur and the Divisional Commissioner, Amravati to make a request for release of CSR funds which may be found to be available upon such verification with such companies”, said the court.

Directions to reduce the drug price used for Mucormycosis

The Bench also took cognisance of the occurrence of Mucormycosis or Black Fungus in Maharashtra, a disease affecting several patients after recovering from Covid-19. The court was informed that in the last 15 days, 43 eyes have been removed and 26 deaths have occurred, all due to Mucormycosis. In the last 2 days, 109 new cases of Mucormycosis have been reported.

It was brought to the notice of the Court that the drugs which are being used for treating Mucormycosis are quite expensive. In addition to this, the quantity and dosage of these drugs are also very high.

To this, the court said, “If this is so, the treatment of this disease may be out of reach of several patients. Besides this, incidence of Mucormycosis has also risen alarmingly. In such a situation, it is necessary that some steps are taken by the Government to bring down the prices of these drugs to an affordable level. We would, therefore, request the National Pharmaceutical Pricing Authority to look into this aspect and issue directives, if possible, for reducing the prices of these drugs to affordable levels.”

The Bench directed the Central Government to regulate the production and distribution of these drugs across India to prevent shortage in the future. Currently, there are about 26 companies located at different places in India which are involved in manufacturing of these drugs.

Specifically for Vidarbha region, the court instructed the Division Commissioner, Nagpur and Amravati, to immediately start awareness campaigns to acquaint the public with the cause, effect and preventive measures to be taken to tackle Mucormycosis. “The IMA has already placed on record guidelines to be followed to safeguard patients from post Covid-19 black fungus disease. These guidelines, we direct, be given wide publicity in at least three languages Marathi, Hindi and English”, read the order.

The order may be read here: