Should Corporate Entities in Karnataka Avoid CSR Fraud?
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Synopsis
Karnataka's Deputy Chief Minister D. K. Shivakumar cautions corporate entities against engaging in CSR fraud, emphasizing the importance of using funds for public school development. He proposes a collaborative approach where companies build schools alongside government support. This initiative aims to ensure proper utilization of CSR funds and enhance educational infrastructure across the state.
Key Takeaways
- Karnataka is focusing on preventing CSR fraud.
- Corporate entities are urged to invest CSR funds in public school construction.
- The government will facilitate land and school designs.
- Monitoring and accountability are emphasized through regular reviews.
- Public education enhancement is a priority for the state.
Bengaluru, May 31 (NationPress) Karnataka's Deputy Chief Minister D. K. Shivakumar issued a cautionary message on Saturday to corporate entities in the state against engaging in Corporate Social Responsibility (CSR) fraud.
This remark came during a review meeting at Vidhana Soudha, aimed at evaluating the overall progress of state initiatives with Deputy Commissioners and CEOs.
Shivakumar highlighted that several corporations in Karnataka are reportedly issuing CSR cheques to private organizations (NGOs) located in other states, while allegedly reclaiming approximately 50 percent of the funds in cash. This troubling trend has caught the government's attention, he noted.
He condemned this as a fraudulent practice, asserting that such exploitation of Karnataka's CSR funds is intolerable.
"It is your duty to guarantee that these funds are invested in the enhancement of our educational institutions," he instructed the officials.
"We do not require CSR funds in cash. Rather, companies should construct one public school for every three Gram Panchayats. If land is necessary, the government will facilitate it. Identify the land, and we will provide the school designs. Companies can then build the structures and establish the necessary infrastructure, with their names displayed on the school buildings alongside the government's," he proposed.
The state receives approximately Rs 8,000 crore annually from CSR funds. A year prior, directives were issued to utilize these funds for establishing CSR model schools. However, the progress has been disappointing, Shivakumar remarked.
He voiced significant dissatisfaction regarding the sluggish advancement in constructing CSR-funded public schools, modeled after the Karnataka Public Schools initiative.
"In my constituency, we are in the process of building 13 CSR public schools, each costing between Rs 9 to Rs 12 crore. However, construction is only advancing in a handful of locations, while many others demonstrate a complete lack of engagement," he noted.
Shivakumar instructed DCs and CEOs to immediately correspond with corporate firms within their jurisdictions and organize meetings to encourage them to undertake public school construction.
He urged them to gather details on the actions taken so far by corporate entities and to adhere to the school building designs provided by the Education Department.
Furthermore, he mandated that at least one model school be established in each taluk, with one school constructed for every three Gram Panchayats based on that design.
The Deputy Commissioner and CEO of Bengaluru have been specifically directed to convene discussions with corporate firms in Bengaluru regarding the application of CSR funds for school construction. All DCs and CEOs across districts have been instructed to hold similar meetings and expedite the school construction process.
Shivakumar also stated that he would personally monitor the progress of this initiative through regular video conferences with DCs and CEOs.
Point of View
The issue raised by Deputy Chief Minister D. K. Shivakumar reflects a growing concern over the ethical use of Corporate Social Responsibility funds. As CSR initiatives are intended to benefit society, it is crucial for corporations to uphold their commitments and ensure transparency. This approach fosters trust and accountability, aligning corporate actions with community needs.
NationPress
08/06/2025
Frequently Asked Questions
What is the main concern regarding CSR funds in Karnataka?
The main concern is that some corporate entities are allegedly misusing CSR funds by issuing cheques to NGOs in other states and reclaiming a significant portion in cash, which is considered fraudulent.
What is the proposed solution for CSR funds in Karnataka?
The proposed solution is for corporate entities to construct public schools, with the government providing land and designs, ensuring that CSR funds are used effectively for educational development.
How much CSR funding does Karnataka receive annually?
Karnataka receives approximately Rs 8,000 crore annually through CSR funds.
What actions will be taken to ensure the proper use of CSR funds?
Deputy CM Shivakumar has instructed DCs and CEOs to engage with corporate firms, gather information on their CSR activities, and encourage them to focus on building public schools.
What is the timeline for implementing the new CSR school initiatives?
The timeline is not explicitly stated, but there is an urgent call for immediate action to expedite the construction of public schools throughout the state.
