The government on Friday said show-cause notices have been issued to 1,018 firms for violating CSR norms under the companies law.

Certain class of profitable companies have to shell out at least 2 per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities under the Companies Act, 2013.

In case of failure to spend the required amount, the companies concerned have to provide explanations to the government.

Minister of State for Corporate Affairs Arjun Ram Meghwal informed the Lok Sabha that show-cause notices have been issued to 1,018 companies for violation of CSR provisions during 2014-15 period.

The CSR norms came into effect from April 1, 2014.

Based on data compiled by the Corporate Affairs Ministry, as many as 12,431 companies shelled out Rs.18,625 crore towards CSR activities in the last two financial years — 2014-15 and 2015-16.

In a written reply, Meghwal said 7,334 firms spent Rs.8,803 crore towards CSR works in 2014-15. Last fiscal, 5,097 companies shelled out Rs.9,822 crore towards such activities, he added.

"Various workshops/ seminars/ conferences are organised by the government for facilitating effective implementation of CSR provision of the Act by companies and professionals," the minister said.