State & Union Failed To Enforce CSR Obligations After 2025 Rainfall Disaster: Himachal Pradesh High Court

The Himachal Pradesh High Court, while taking suo motu cognisance of the devastation caused by the excess rainfall in 2025, held that both the State Government and the Union of India failed to effectively enforce Corporate Social Responsibility obligations under the Companies Act, 2013. The Court noted that despite a clear statutory framework, no steps were taken to utilise the CSR funds for disaster relief and rehabilitation of infrastructure. Division Bench of Chief Justice G.S. Sandhawalia and Justice Jiya Lal Bhardwaj Observed that: “Perusal of the affidavit dated 01.12.2025… would go on to show that the State had not issued any directions to the Companies under the Corporate Social Responsibilities (CSR) provision, specially for unprecedented rainfall in 2025, which has led to the crippling of the infrastructure.”The case arose when affidavits filed by State and Central authorities revealed that no specific directions were issued to companies to contribute CSR funds for addressing the damage caused by the 2025 rainfall. The Court noted that there are a total of 80 Companies, which fall within the preview of Section 135 of the Companies Act, 2013, however only an amount of Rs. 4752.39 lacs has been contributed. In response, the State contended that the State Government and the Union Territories were advised not to issue guidelines or orders which may affect the decision making powers of the CSR Committee.After going through the affidavits filed by the State as well as the Union of India, the Court observed that both the Union of India and the State have been negligient in their duties and have not realized the ambit of statutory provisions of Section 135 of the Companies Act and the benefits which have to be given to the general public. Further the Court observed that some companies did not even disclose their CSR contributions, while others made very less contributions despite substantial financial capacity.Thus, the High Court directed the State Government to file a fresh affidavit“as to what pro-active steps it is going to take against the Industries as such for the ineffective contribution and to enforce the provisions of the Act.”Case Name: Court on its own motion v/s Union of India & others Case No.: CWPIL No.90 of 2025Date of Decision: 17.12.2025Click Here To Read/Download Order

State & Union Failed To Enforce CSR Obligations After 2025 Rainfall Disaster: Himachal Pradesh High Court

Mehak Aggarwal

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