NCLAT Exempts 50 IL&FS Red & Amber Companies from CSR Obligations

• NCLAT has exempted 50 'red' and 'amber' IL&FS Group companies from Corporate Social Responsibility (CSR) obligations.
• The exemption is due to interest expenses on loan amounts, which led to notional profits under Section 198 of the Companies Act.
• These companies, protected by a moratorium since October 2018, were otherwise liable for CSR under Section 135.
• The two-member bench used discretionary power under Sections 241(2) and 242(2)(m) of the Companies Act to grant the waiver.
• IL&FS Group has resolved 202 companies and discharged Rs 48,463 crore to creditors as of September 2025, from an initial debt of Rs 99,355 crore.