CAG finds Jammu and Kashmir public sector enterprises spent just Rs 3.05 crore of Rs 27.42 crore CSR allocation in 2022‑23

CAG audit spotlights CSR spending gap in J&K public firms

The Comptroller and Auditor General of India (CAG) has released a damning audit of Jammu and Kashmir’s public sector enterprises (PSEs). For the fiscal year 2022‑23 the enterprises were allotted Rs 27.42 crore for corporate social responsibility, but the audit shows that only Rs 3.05 crore actually reached the ground.

How the shortfall broke down

The report examined nine Union Territory‑based PSEs, seven of which were legally required to spend on CSR. Four of those seven filed any CSR expenditure at all. Jammu and Kashmir Bank Limited was the lone exception that fully met its allocation. By contrast, the Jammu and Kashmir State Power Development Corporation Limited (JKSPDC) spent just Rs 1.57 crore out of a Rs 25.80 crore allocation – a 94 % shortfall. Chenab Valley Power Projects Private Limited used Rs 0.30 crore of its Rs 0.44 crore budget, leaving a 32 % gap.

Delayed hand‑over of unspent money

Section 135(5) of the Companies Act mandates that any CSR amount not linked to an ongoing project must be transferred to a Schedule VII fund within six months of the financial year’s end. The CAG found that JKSPDC’s unspent balances – Rs 7.60 crore for 2020‑21, Rs 8.54 crore for 2021‑22 and Rs 8.09 crore for 2022‑23 – were only moved to the Swachh Bharat Kosh in October 2024 and June 2025, well past the deadline.

A deeper financial malaise

The CSR shortfall is only the tip of the iceberg. A separate CAG observation, quoted by Moneycontrol, notes that out of 42 PSEs operating in the Union Territory, 26 reported losses or were classified as inactive as of 31 March 2023. The audit therefore paints a picture of systemic distress: many enterprises are either barely profitable or not operating at all, limiting their ability to meet statutory CSR obligations.

Institutional weaknesses

Beyond the numbers, the audit flagged weak governance. Although the Companies Act requires a CSR committee for eligible firms, only four of the nine PSEs had formed such committees during 2022‑23. The absence of dedicated oversight bodies likely contributed to the lax spending and delayed fund transfers.

What the CAG recommends

The auditor‑general’s report urges the Union Territory administration to:1. Strengthen monitoring of CSR allocations and enforce the six‑month transfer rule.2. Ensure that all eligible PSEs constitution CSR committees with clear accountability.3. Conduct a broader financial health check of the 42 PSEs, targeting the 26 loss‑making entities for corrective action.

If the recommendations are not acted upon, the gap between statutory CSR spending and actual impact will widen, and the fiscal strain on Jammu and Kashmir’s public sector could deepen further.