However, the government is not in favour of making the corporate social responsibility (CSR) obligations mandatory against the backdrop of stiff resistance from the corporates.
The Companies Bill that seeks to keep pace with the changing modern industrial climate is in the last stages of considerations before the Parliamentary Standing Committee and the government hopes that its recommendations will be placed in Parliament shortly.
"I was told that the Parliamentary Committee had its last meeting on June 5. They will formulate recommendations and send it to us. If they send it to us in time, we can move it. If there are substantial changes, then we will send it to the Cabinet before taking it for passing in Parliament," Corporate Affairs Minister M Veerapa Moily told PTI in an interview.
Under the provisions of the bill, the recast SFIO will have powers to arrest and prosecute cases of corporate crime. A completely new provision will be that SFIO will have powers to issue Letters Rogatory to foreign jurisdictions in cases where people involved are located outside the country.