How to store a will

By Mihika Awate

The concept of will is one such legal concept which is known by the public at large. A Will is a document by which a person lays down how their property is to be disposed of after their death and the person making the will is known as a ‘Testator’. The important part here is ‘after their death’, since if the intention is to dispose of the property during their lifetime, then it would not be a will. The property to be disposed of can be both movable and immovable property of the testator.

Every person who is of sound mind and is a major can make a will. The person making the will has to be aware of the consequences of making the will and what he does by making one, and so a person who is intoxicated or suffering from illness or any other cause due to which they do not know what they’re doing, a will made in such a state will not be valid. The will also must be made voluntarily and not under coercion or fraud, et cetera.

There are two types of wills :

  • Unprivileged will – Except for certain circumstances which allow for privileged wills, most wills are Unprivileged wills i.e. they are in written format, must be signed by the testator & need to be attested.
  • Privileged will – SECTION 65 and 66 talk about the circumstances under which privileged wills can be made and in such cases, a will can be made orally and does not require to be attested.

This article will deal only with the storing of an unprivileged will.

  • In a safe at your home

Nowadays there is a wide variety of home safes available in the market for people to purchase. People prefer to store valuables such as property papers, jewelry, cash et cetera at home where they can keep an eye out for the same and purchase a safe for the same reason. With the introduction of the new rules by the RBI notification issued on 18th August 2021 which greatly reduces the bank’s liability and the compensation amount to be paid in case of any damage to the bank locker contents, one can presume that home safes will be more predominant than ever before. One can also make use of a home safe to store one’s will. However, make sure that at least one person other than yourself, a person you trust, is aware of the password/pin of the safe.

  • In a bank locker

Bank lockers are often resorted to by people to store their valuables in, and a will being one can be stored in the bank locker as well. Rent has to be paid for the locker according to the bank rules & regulations. A bank locker can be hired either individually or jointly. When it is hired jointly if one owner dies, then the other owner can still access the locker and hence accessing the will of the dead owner will not be a problem. When it is hired individually, accessing the will of the owner after their death will be extremely difficult and a tedious process. For this reason, it is always recommended that one has a nominee listed for their bank locker who will gain access to the bank locker post their death.

  • With your lawyer

You may also store your will with your lawyer. People often take the help of a lawyer to draft their will since lawyers are aware of the laws related to a will, although it is not necessary to take the aid of a lawyer to draft one’s will. In such cases, one may store their will with the lawyer themselves. Often lawyers have a safe in their offices to store important documents and they may be able to store their client’s will inside the same as well.

  • Make multiple copies of your will

Make sure that apart from your main will, you have made at least 2 copies of your will and have stored them in safe places as well.

A will is an important document and it is of paramount importance that it is stored properly. A lost will is equivalent to having no will. You may store it at places other than the ones mentioned above, such as at your parents’ home, but make sure you store it in a safe place where someone will not be able to tamper with it but at the same time, it is accessible post your death.

Online Dispute Resolution in India

By Nevin Clinton

Introduction

It is a known fact that justice comes with costs and always with delays, especially in a hugely populous country like India. The huge backlog of cases has not helped in painting a good picture of the Indian judiciary despite its best efforts. Therefore, Alternative Dispute Resolution (ADR) mechanisms like arbitration and mediation are becoming more and more common and accepted among the masses. In a similar vein, Online Dispute Resolution (ODR) is a much newer prospect that is being explored by the Indian government as well as enterprises. 

What is Online Dispute Resolution?

The United Nations Commission on International Trade Law defines Online Dispute Resolution as the ‘use of electronic communications and other information and communication technology for dispute resolution.’ It involves the parties to a dispute taking their case online and giving complete details on the same to a neutral third party (arbitrator or mediator) who will then come up with a solution to resolve it. 

Advantages of Online Dispute Resolution

ODR comes with a plethora of advantages

  • It significantly reduces costs. Statistics from ODR India state that cost reduces by 15-24% when opting for ODR over normal court proceedings.
  • Disputes get resolved very quickly. It could even take less than a month for disputes to be completely resolved. 
  • It completely reimagines dispute resolution from the typical concept of a long drawn out courtroom process to a service that can be availed easily.
  • It focuses on solutions that are arrived at through negotiation, mediation and conciliation. Instead of a dispute usually being an adversarial one, it turns into a collaborative process here. 
  • There are various specialized ODR service providers to suit the needs of the nature of the dispute.

Issues with ODR

There are some very obvious problems that might crop up with regard to ODR

  • Accessibility for all could be an issue as not everyone has the requisite facilities and/or skillset to adhere to the procedure involved in ODR. 
  • It might take time for acceptance of ODR among the people as trustworthiness takes time to build. ODR service providers must also be wary of the kind of reputation they build in order to increase confidence. 
  • Lack of awareness about ODR is another problem, as is the fact that there aren’t a lot of trained professionals to offer such services. 
  • Since important documents and the like will be required to be submitted online for ODR, concerns about privacy could come up.

ODR Mechanism in India

ODR in India has had a considerable boom over the course of the last few years or so. The COVID-19 pandemic has been one of the key contributors to the same. The ICICI Bank played a key role by initiating a project along with Sama to resolve disputes relating to loan repayments. Various other popular services like the Centre for Online Resolution of Disputes (CORD) have also emerged during this time period. Such operators have helped increase the awareness among people and companies about ODR. 

The government has also recognized the prospect of ODR becoming a key mechanism in the future. To look into it, a high-level committee was appointed in 2020, headed by retired Justice A.K. Sikri in order to come up with recommendations on how to develop the mechanism. Some of the suggestions that the committee came up with are as follows.

  • A legislation on ODR which gives complete backing to it
  • Various incentives including tax concessions for ODR startups and companies
  • A national body to regulate ODR
  • Sufficient budget to be allocated to the body
  • Making mediation for some category of disputes (like consumer issues) mandatory

Earlier this year, the government through NITI Aayog launched a handbook in order to explain the advantages of ODR and to encourage top companies to adopt it. 

Conclusion

Despite its few drawbacks (that pale in comparison to its merits), ODR is an excellent mechanism to resolve disputes. It is still in its early stages in India, but judging by its recent growth and with proper backing by the government, it could become one that forms a key part of the Indian legal system.

Essentials of an Asset Purchase Agreement

By Nevin Clinton

Purchase or sale of assets is a vital part of a plethora of businesses and it is of paramount importance that both parties to such a transaction get fair terms and treatment. Therefore, it is essential that such terms are written down and agreed upon. This is where an asset purchase agreement comes into the picture.

What is an Asset Purchase Agreement?

An asset purchase agreement (hereinafter referred to also as APA) is nothing but an agreement made between a buyer and seller in order to transact on an asset for a fixed price. It must be noted here that an asset purchase agreement is completely different (albeit confused with) from a merger and acquisition transaction. In the latter, there is transfer of all assets concerned whereas in the former it is just a few specified assets that are sold and bought. 

Why is an Asset Purchase Agreement necessary?

An APA is important because it comes with a plethora of advantages that help make the process of transfer of an asset simpler. Clear laying down of the structure and mode of transaction can be laid down and the terms can be made clearer than they would have been in an oral agreement. Problems with the law or with minority shareholders can be avoided as well. Apart from all these, the important fact of the matter is that they help both parties in understanding their roles and in protecting their rights.

Are there any downsides to an Asset Purchase Agreement?

There are a few disadvantages that are associated with an APA despite its aforementioned positive points. For example, there can be higher costs involved especially when a process of retitling of the asset is done. The agreement would need to be reviewed and approved by the concerned authorities and that could be time-consuming. Also, there can be times when an APA is not needed at all and some other legal instrument is required. In such cases, it is necessary to choose the right kind of agreement, failing which, complications could arise. Therefore, it will also be advisable and essential to hire legal personnel to help with drafting and coming up with terms in the agreement.

What are the essentials of an Asset Purchase Agreement?

  • Details on Assets Transferred: An APA must contain the terms concerning the transfer of the asset and how the same must be effected. Royalty fees involved, if any, and other such details must also be mentioned in the agreement.
  • Price: The price of the asset and the mode of payment that would be used must also be stated. 
  • Representation and Warranties: It is important that an assurance is made regarding the quality of the asset, terms of use, risks involved and so on by the seller (representation). If the said assurance turns out to be false, the seller can be held responsible through termination, penalty or litigation and the same must be mentioned in the APA (warranty).
  • Indemnification Clause: It is advisable that an indemnification clause be given in an APA in order to indemnify the buyer in instances like any legal suit, unforeseen losses, fines etc.
  • Termination: Details on how and when the APA can be terminated and cease to exist can also be stated. This can be when there is mutual consent or when terms are breached by either party etc. 
  • Obligations post transfer of asset: The relationship between the buyer and seller does not stop with the transfer of the asset. There are bound to be certain obligations post sale on the part of both parties. This can be elucidated upon in the APA. 
  • Other such details that might be necessary to include in the relevant case.

An APA, according to Blount Law, must have an answer to four of the following: Who? (parties involved), what? (the asset), how? (mode of transfer, payment etc.), what happens after? (post-sale obligations). 

Conclusion

An Asset Purchase Agreement is an efficient way to make the rights and obligations of a buyer and seller clear when an asset is transferred. Notwithstanding the few mentioned disadvantages concerning it, its advantages easily outweigh the same and hence, it is absolutely necessary that in most cases, an APA must be drafted. 

CCI’s Antitrust Probe against Amazon and Flipkart: All you need to know

Amazon and Flipkart have found themselves in a spot of bother after the Supreme Court ruled that there would be no stay on an ongoing inquiry against them by the Competition Commission of India (CCI). 

History of the Probe

Delhi Vyapar Mahasangh (DVM), a group that represents small and medium business houses in India, filed a complaint at the CCI against Flipkart and Amazon for engaging in anti-competitive conduct. The CCI decided to undertake a probe and the companies then decided to challenge the probe. 

The Karnataka High Court decided on the matter and upheld the CCI’s decision. The companies decided to further take it up to the Supreme Court and the apex court ruled that the probe should continue saying that, “Big Corporates like Amazon and Flipkart should be subject to transparency and inquiry.”

What was the probe all about?

DVM, the complainant, alleged that Flipkart and Amazon were entering into anti-competitive agreements and also abusing their dominant position in the market. The aforementioned two situations are prohibited under Section 3 and 4 of the Competition Act, 2002. 

What was the first allegation?

With regard to the first allegation of anti-competitive agreements, DVM claimed that the two companies were entering into vertical arrangements with sellers leading to ‘foreclosure of other sellers from the marketplace’ which in this case is online. Deep discounting, preferential listing and exclusive tie-ups were supposedly done with these few sellers. DVM also named these sellers and provided proof as to how agreements were entered into. These were obtained through communication made during the companies’ famous Big Billion Day Sale (Flipkart) and the Great Indian Festival (Amazon). Further, it was claimed that Flipkart brands certain sellers’ products as ‘Assured Seller’ and Amazon brands them as ‘Fulfilled’ without there being a solid explanation or basis on what exactly they are. 

What did DVM allege about abuse of dominant position?

The allegations with respect to abuse of dominant position stated that the two companies were limiting the influence and provision of services of MSMEs and other such retailers. So even if products of these companies were listed, they would appear in the final few pages even if they had the same ‘user rating’ as that of the top sellers. The dominance in the market was proved by pointing out the huge market share of the companies as well as their ability to unilaterally terminate agreements. DVM concluded that the entire model of Flipkart and Amazon as e-commerce entities was anti-competitive. 

What was the CCI’s verdict?

The CCI then looked at the matter and decided that the arguments made had substance and that there was a prima facie case that needed investigation by the Director General. 

What happened after the investigation was ordered?

Flipkart and Amazon refused to cooperate with the investigation that was ordered and decided to file an appeal. A Single-Judge Bench and subsequently a Division Bench at the Karnataka High Court ruled that the companies had to join the investigation process soon. Taking it up finally with the Supreme Court, a bench led by CJI NV Ramana and two more Justices refused to stay the inquiry and gave the companies four weeks’ time to cooperate. The SC criticized the two companies for refusing to join the investigation and stated that the appeals seemed merely like attempts made to ensure that the CCI’s action does not attain ‘finality’.

What next for Flipkart and Amazon?

Flipkart and Amazon now have no choice but to comply with the Supreme Court’s order and cooperate with the investigation. If found guilty of entering into anti-competitive agreements and abusing their dominant position, they will be sanctioned with huge fines and directed to do away with the anti-competitive conduct. 

Conclusion

In today’s fast-paced digital world, e-commerce companies like Flipkart and Amazon have become part and parcel of day-to-day life. Even as these companies are growing by the day, they do have an obligation to ensure there is fair competition in the market. Anti-competitive conduct is by no means welcome and DVM was right in bringing the issue up. The CCI, HC and SC orders have all come as a blow to the companies and it remains to be seen how the investigation now unfolds.

National Green Tribunal: Jurisdiction and Procedure to file a Complaint

By Nevin Clinton

What is the National Green Tribunal?

The National Green Tribunal (NGT) is a body that was set up through the National Green Tribunal Act, 2010 to deal with cases relating to the environment. The NGT is a specialized body that focuses on effectively and quickly dealing with such cases. The Central Government stated that the tribunal would look into cases on “environment protection, conservation of forests and for seeking compensation for damages caused to people or property due to violation of environmental laws or conditions specified while granting permissions.”

While cases that are filed in the usual forums like courts would take years to settle, filing complaints at the NGT would see a resolution in less than 6 months. This is because the NGT is mandated to dispose of cases within 6 months of filing. 

What is the NGT’s structure?

The NGT has a chairperson, judicial members and expert members who will be appointed for a five-year term (there won’t be reappointment). The Chairperson will be appointed by the government with the consultation of the Chief Justice of India. The other members will be selected by a specialized committee. The NGT has a total of five places of sitting – New Delhi, Chennai, Kolkata, Pune and Bhopal.

Jurisdiction of the NGT

The NGT has jurisdiction over cases where there is a ‘substantial question’ relating to environmental protection or enforcement of environmental rights involved. Cases under statutes like The Water (Prevention and Control of Pollution) Act, 1974, The Forest (Conservation) Act, 1980. The Air (Prevention and Control of Pollution) Act, 1981. The Environment (Protection) Act, 1986, and The Biological Diversity Act, 2002 can be filed. The NGT can also act as an appellate body when an order is issued under the aforesaid acts. It is noteworthy here that cases under the Wildlife (Protection) Act, 1972 and the Indian Forest Act, 1927 can’t be filed at the tribunal.

The NGT can provide remedies like restitution, compensation, penalties like imprisonment and fines etc. The tribunal’s decision can be appealed at the Supreme Court within 90 days of the communication of the order. 

Now, in a recent development, the question as to whether the NGT can take suo moto cognizance of a case without the filing of an application has arisen. The Supreme Court is set to decide on the matter very soon

Filing an offline complaint at the NGT

The process to file an offline complaint at the NGT is fairly simple. One has to just visit a tribunal office and fill in the application form for a complaint. Petitions in the form of written letters are also accepted. If one is filing a case which is not seeking compensation, Rs. 1000 must be paid as a fee. If the case involves compensation, one percent of the same (or a minimum of Rs. 1000) must be paid.

How to file a complaint online at the NGT?

The steps to file a complaint online at the NGT are as follows

  • Go to the online portal of the NGT (https://ngtonline.nic.in/efiling/mainPage.drt).
  • Click on ‘Applicant Corner’.
  • Sign up as an individual/advocate/institution or sign in if you’re already a user.
  • You will require a document as ID Proof that you must upload as a picture or PDF.
  • After signing in is done and you’ve agreed to all terms, go to ‘petition filing’ and fill up your details following which a reference number will be given.
  • Then details on yourself and the respondent will be required.
  • Finally you must fill in details about the complaint and you will be required to submit documents to prove your point.
  • Once you fill them up, you will get a preview of your application which you will have to confirm.
  • Finally, you will be directed to the payment section where payment can be done online.
  • Once the complaint is filed, you will also be able to track your complaint’s status through the ‘Track Complaint’ option.

Conclusion

The NGT is a body that is of paramount importance as it helps in quick disposal of cases in what is a hugely crucial area of law – environmental protection. While there are a few challenges that face the tribunal, the NGT has been instrumental in passing key orders and its role will only continue to become more and more marked as time goes on. Therefore, the general public must be given maximum awareness of the existence of such a body as well as the procedures involved in filing a complaint – both offline and online. 

Liability for Misrepresentations in Prospectuses of Companies

By Nevin Clinton

What is a prospectus?

A prospectus is a document issued by a company that has important information on the investments that investors can make. The document offers (or must offer) a transparent look at the company, its securities in the market, and so on. The prospectus is among the first documents that is usually referred to when an individual contemplates making investments.

Section 2(70) of the Companies Act, 2013 defines a prospectus as “a document that invites offers from the public for the subscription or purchase of the securities of a company.”  Also, Section 28(2) of the Act states that just about any document that offers sale of shares will be considered to be a prospectus.

Need for a clear and transparent prospectus

A prospectus is of paramount importance to both companies and investors as it offers a clear view on the securities offered. The document helps in both the companies and investors identifying the right match. Therefore, a prospectus must always be clear, transparent and true. Even if there are future predictions or projections that are mentioned in the prospectus, they must be reasonable. 

Will inaccurate future projections fall under ‘misrepresentation’?

Misrepresentations in prospectuses warrant punishment and the Companies Act has provisions for the same. Now, blatant false statements in the document can be easily deemed to be misrepresentation and be punished. 

But, the situation gets tricky when there are future projections made. The question arises as to when future projections will be deemed to be misrepresentation. It is obvious that not all future projections will be accurate. Therefore, the issuer of a prospectus will not be held responsible for every minor error. Rather, he will be held liable when false statements are not made in good faith. The basis and materiality of the statement will be examined to determine the same as has been laid down by the National Company Law Tribunal (NCLT) in various cases.

Liability in case of misrepresentations

The liability for misrepresentations in a prospectus can be either civil or criminal or both. Civil liability will occur when an individual has suffered damage because of buying shares on the basis of misrepresentations in the prospectus. Here, a lawsuit under Section 37 of the Companies Act can be filed and the issuers of the prospectus will be punished under Section 447. The aggrieved property can also call for rescission of contracts and other relationships with the company. 

Criminal liability will also arise in case of misrepresentation as all individuals who authorize the misstatement in the prospectus will be liable for fraud. Punishments will include imprisonment for a minimum of six months and a maximum of ten years along with a fine. It is noteworthy here that apart from civil or criminal liability, action can also be taken under the Indian Contracts Act, 1872 which defines misrepresentation under Section 18. So if misrepresentation is proved, all the contracts that are signed with regard to the prospectus will become voidable at the option of the investor. Also, compensation can be claimed under Section 75 of the Contracts Act. 

Who can be held liable for misrepresentations in the prospectus?

Every person who has given consent to the prospectus by signing will be held liable in case of misrepresentations. This could be all those concerned with the management of the company like directors, managers, secretaries, etc.

Exceptions from liability

An individual or the issuer of a prospectus can escape liability for misrepresentation in a prospectus if he can prove materiality in his statements and that he had ‘reasonable grounds to believe that the statement was true or the inclusion or omission was necessary and believed in it at the time of issue of the prospectus’. Similarly, if he can prove that the prospectus and the statement was made without his authority, consent or knowledge, liability can be escaped from.

Conclusion

It is necessary for every company to understand that the prospectus is a crucial document in which misrepresentations will only cause harm rather than good. Complete transparency will lead to getting the perfect investor while also ensuring smoothness in how the company runs and therefore, great care must be taken while drafting it.

Work from Home and Maternity Benefit: Is there a need for reform?

By Nevin Clinton

Maternity is a hugely important period in a woman’s life and hence, priority in the said period must be on providing the best care for mother and child. Everything else including work must take a back seat. Therefore, to recognize and respect this period of maternity and to ensure that every working woman’s rights are safeguarded, the Maternity Benefit Act, 1961 came into force.

Key provisions of the Act

The act entitles every working woman to leave with full pay and benefits for up to 26 weeks. This applies to all establishments where there are 10 or more employees. The condition is that the woman must have worked for at least 80 days in the preceding 12 months. While availing these maternity benefits, the woman’s service cannot be terminated by the employer because of the pregnancy (there can be termination due to poor conduct and the like). 

Now, the Maternity Benefit Act has been amended from time to time to incorporate provisions in accordance with the changing times. One such key amendment was made in 2017 which brought in some important changes such as extending the maternity leave period from 12 to 26 weeks. There are also other provisions that were brought in for an increased period of leave in cases of miscarrige or termination of pregnancy.

Among these changes, one other important inclusion was that of provisions for ‘work from home’.

The emergence of work from home

Working from home has been a relatively new concept or idea that emerged thanks to the advent of computerisation of a plethora of work done in jobs. Despite the fact that the same could get monotonous, working from home has emerged as a viable option for people looking for light work. With the arrival of the COVID-19 pandemic, the concept came into the mainstream with nearly every establishment going for it. 

Work from home and maternity benefit

In the context of maternity benefits, work from home was a novel concept in India and there was on official recognition of the same. However, the 2017 amendment in what was a welcome change, brought in the option of employers providing for mothers to work from home for an extended period after delivery, ‘if the nature of work allows so’. 

Is there room for reform?

Now, the option or the very concept of work from home for mothers is pioneering, yes. Mothers in the past did not have such a possibility and even their maternity leave period was far lesser. Therefore, the changes in recent times have been extremely promising and there is no denying that.

But, there is still some scope for reform, especially with regard to the work from home provisions. This is because the complete discretion to make the option available to the women concerned lies with the employer. There is no say for the women. The employer can very well not provide the option stating that the nature of work does ot allow so (even if it in fact allows so). 

Therefore, employers must be made aware of the existence of the ‘work from home’ provisions and advised to make it available wherever possible. Legislation could be a solution to ensure that the option is not denied, but the problem in such a situation would lie in ascertaining an objective way to determine when the nature of work is in such a way for the option to be exercised. 

Classification of various jobs in every establishment as to whether ‘work from home’ would be possible would be a good solution as well, if made mandatory. This can help in the discretion of making use of the option shifting to the employees to an extent, albeit not fully (since the employers will have a say in the said classification of jobs, if done).

Conclusion

The Maternity Benefit Act in India does not have a lot of controversial or contentious provisions. In fact, the Act has been recognized as a progressive one by other countries. Recent amendments have also been encouraging. Therefore, with a few crucial amendments from time to time, India can go a long way in making sure that its maternity benefit legislation is near-perfect. 

 

Corporate Social Responsibility Laws in India

By Priyasha Sen Gupta

Introduction

India is one of the first countries in the world to promulgate a corporate social responsibility law. After the Companies Act, 2013 was revised in April 2014, the law became mandatory. Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 define corporate social responsibility as a company’s overall responsibility for the environment and society, in which the company is obliged to perform its business through environment-related activities such as environmental protection, social and educational activities, and more.

What is Corporate Social Responsibility?

Kotler and Lee are recognized experts in business and marketing. They define Corporate Social Responsibility as the obligation to enhance social well-being through business practice, diligence, and the contribution of company resources. The company fulfils its corporate social responsibility obligations in order to maintain social goals.

According to Section 2 (d) of the Companies (CSR Policy) Amendment Rules, 2021, "Corporate Social Responsibility (CSR)" refers to the activities carried out by the company in accordance with the legal obligations as per Section 135 of the Act, along with the provisions of the law, however, it does not include the following:

 • The activities that are carried out in accordance with the company's normal course of business. 
 • All activities outside of India, with the exception of the training of Indian sports personnel who constitute or represent a state or union territory at a national level or from India at an international level. 
 • Direct or indirect donations of any amount to a political party under section 182 of the Act. 
 • Activities for the benefit of the company's employees as defined in Section 2 clause (k) of the Code on Wages, 2019.
 • Activities that are to be supported by companies in the form of sponsorship in order to achieve marketing advantages for their products or services. 
 • Activities carried out to comply with other legal obligations under applicable law in India.

The History of CSR in India

In early and medieval India, kings, landlords, and businessmen accompanied the concept of social duty and additionally gave significance and value to social duty. Every person then believed withinside the term “The more you give, the more you receive”. The sustainability and boom of each person and the society as a whole can best be advanced and accomplished by the collective growth of the society.

Significance of CSR

 • CSR helps companies to strengthen relationships with stakeholders. 
 • Provides important assistance in the recruitment and retention of human resources and ensures a good environment among the existing employees. 
 • Reduces risk management and helps to do the right things within an organization. 
 • Build brand reputation through innovation and other CSR initiatives. 
 • Increases while maintaining brand value as the media presence casts a positive light on the company. 
 • It also helps with the growth of the value of the corporate brand by cultivating and strengthening social relationships with customers. 
 • Helps companies to develop and legitimize a larger market share.

Amendments in CSR Rules, 2021

On January 22, 2021, The Ministry of Corporate Affairs (MCA) amended the Companies (Corporate Social Responsibility Policy) Rules, 2014, now known as Companies (Corporate Social Responsibility Policy) Amendment Rules 2021. According to the Companies (Corporate Social Responsibility Policy) Rules 2014, these rules have been modified to be more transparent and accountable.

Administrative Overheads

After the amendment, “administrative overheads” will only refer to expenses incurred by the company for “general management and administrative management of the company's corporate social responsibility functions.” All other expenses directly incurred for the development, monitoring, implementation, and evaluations of specific CSR projects are not included in management expenses. 
Simply put, this means that administrative expenses do not include all direct expenses of a given CSR project or program.

Conclusion

India’s Corporate Social Responsibility is adopted in the hope that it will become an effective tool to unite the efforts of the business and social sectors to achieve sustainable growth and the development of overall social goals.

It is also believed that the community will benefit because the government has not succeeded a great deal in its efforts to help local people. Although well-intentioned, the law did not initially cover most of the reasons.

Therefore, the Companies (CSR Policy) Amendment Rules 2021 were introduced to create a strong regulatory framework for holding CSR events in India and overhaul India’s CSR system. Concepts such as CSR meanings, CSR policies, and CSR implementation have changed and are presented in a more detailed and structured manner which is a positive development.