On January 22, 2021, the Government of India brought into effect
the Companies (Corporate Social Responsibility Policy) Amendment
Rules, 2021 (“Rules”). The Rules
amended the exiting Companies (Corporate Social Responsibility
Policy) Rules, 2014 (“Existing
Rules”).
Amended Definitions
To address the pandemic, the Rules have amended the definition
of Corporate Social Responsibility
(“CSR”) to clarify that activities
undertaken in pursuance of normal course of business of the company
shall not be included under the ambit of CSR. However, the Rules do
make an exception. Any company engaged in research and development
activity of new vaccine, drugs and medical devices in their normal
course of business may undertake research and development activity
of new vaccine, drugs and medical devices related to COVID-19 for
financial years 2020-21, 2021-22, 2022-23 as CSR1. The
Rules have further clarified that any activity undertaken by the
company outside India shall not be
