HC irked over lack of govt initiative in monitoring CSR activities

The Himachal Pradesh High Court has expressed strong displeasure over the state government’s lack of initiative in monitoring Corporate Social Responsibility (CSR) activities despite having enabling provisions and opportunities to utilise such funds, especially in the wake of the recent natural calamities.

The court was referring to a letter issued by the Director of Industries on November 1, 2025, which stated that the issue of monitoring CSR activities had earlier been clarified by the government on July 9, 2021, confirming that it had no direct role in implementation or monitoring of the CSR obligations under the Companies Act. However, following the court’s order passed on September 12, 2025, the state had now begun taking steps to identify companies falling under CSR provisions and was in the process of consolidating the required information, for which four weeks’ time was sought.

Taking serious note of the delay, a division bench comprising the Chief Justice Gurmeet Singh Sandhawalia and Justice Ranjan Sharma observed that “the state seemed to have woken up from its slumber” only after judicial intervention. The court remarked that it was “unfortunate that the state is not in a position to have a wide vision in spite of being badly hit by natural calamities.”

The bench further noted that time had been wasted due to “poor legal advice” and ineffective utilisation of the Legal Remembrancer-cum-Principal Secretary (Law), an officer deputed by the High Court, whose work was withdrawn by the Chief Secretary on October 15, 2025 and later modified on October 18, 2025 after realising administrative difficulties.

The bench observed that the situation reflected a “dismal picture and lack of vision” on the part of the state. The matter has been listed for December 3 for further hearing.