The Legal Rights Protection Forum (LRPF) has lodged a formal complaint with the Ministry of Corporate Affairs (MCA), alleging that Hindalco Industries Ltd. has failed to fulfill its Corporate Social Responsibility (CSR) obligations under Section 135(5) of the Companies Act, 2013. The complaint, addressed to the Secretary of the MCA and copied to key officials, including the Securities and Exchange Board of India (SEBI) and the Odisha Mines Department, raises concerns about Hindalco’s lack of CSR initiatives in Odisha despite its substantial operations in the state.
According to the LRPF, Hindalco, one of India’s largest aluminum manufacturers, generates annual revenues close to two trillion rupees and operates extensively in states like Odisha for resource extraction. Despite these profits and the mandate to prioritize CSR spending in local communities, the complaint alleges that Hindalco’s CSR activities in Odisha remain insufficient.
The LRPF highlights that while Hindalco’s official website lists CSR priorities, including health, education, and sustainable livelihoods, there is no clear indication of efforts focused on Odisha, where the company’s operations impact local communities. The organization points to an unanswered CSR grant proposal from the Holy Spirit Health and Charitable Society, submitted in June 2024, which sought educational support for underprivileged children in Odisha. Nearly five months later, the application reportedly remains unacknowledged.
Section 135(5) of the Companies Act mandates that companies prioritize CSR activities in their operational areas, making Hindalco’s lack of initiatives in Odisha a potential compliance issue. The LRPF has requested an inquiry into Hindalco’s CSR spending practices in Odisha and appropriate action from the Ministry of Corporate Affairs.
Given the significant socio-economic impact of its operations in the state, the Ministry of Corporate Affairs has yet to respond to this complaint, which calls for a thorough investigation into Hindalco’s CSR commitments in Odisha.
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