NCLAT exempts 50 IL&FS firms from CSR rules due to financial distress, aiding insolvency resolution.

The National Company Law Appellate Tribunal (NCLAT) has exempted about 50 red and amber status companies within the IL&FS group from corporate social responsibility (CSR) compliance, citing financial distress and notional profits from accounting adjustments. The relief, granted under discretionary powers, aims to ease pressure during ongoing insolvency proceedings under the Insolvency and Bankruptcy Code. The companies, protected by a moratorium since 2018, had been technically liable for CSR spending due to deferred interest. The move supports IL&FS’s debt resolution efforts, which have already led to Rs 48,463 crore in repayments and the resolution of 202 entities.