Ahmedabad: Terming the provision in the amended Company Law on corporate social responsibility as "forced philanthropy", the Supreme Court Bar Association president Dushyant Dave today said that it should be removed.
"I regret to say that judiciary has singularly failed to come to the help of citizens. Over the last 65 years, the judiciary has upheld every nonsensical action of legislature and government," Dave said on Saturday.
He was speaking at a seminar at United World School of Law here on 'Changing face of Corporates with reference to Amended Provision of CSR in the Companies Act, 2013.' Citing an example, he said that under the land acquisition laws, lands of farmers are taken away and given to corporates, while the former are paid very meagre compensation.
"The corporate world in India does not run on the principle of trusteeship, it runs on principle of sole proprietorship. I have respect for the corporate world. But indisputably the corporate world in India is irresponsible and is run only and only for the benefit of the few share-holders or directors who are controlling the company," Dave said.
"Unless you instill the philosophy of trusteeship, it is impossible to merely expect from the corporates to do anything towards social responsibility. This is forced philanthropy," he said, referring to mandatory CSR provision.
Stressing that social responsibility comes from within, Dave said the amendment should be scrapped. "You (law-makers) don't have any accountability for these people (corporates). You do not have control over them, but now you take pride as a nation that we have a legislation whereby two per cent of the profit of corporates will be used for social works," he said.
"Do we want the Parliament to invade our private lives (so) that we can't even breathe without Parliament telling us how to breathe? It is a very serious issue," he added. Former and present judges of the Supreme Court and Gujarat High Court were present among others.
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