Bengaluru: Deputy Chief Minister D. K. Shivakumar on Saturday warned corporate entities operating in the state not to indulge in committing Corporate Social Responsibility (CSR) fraud.

He made the statement during a review meeting on Saturday at Vidhana Soudha, held to assess state-wide progress with Deputy Commissioners and CEOs. Deputy CM Shivakumar pointed out that many corporate entities based in Karnataka are issuing CSR cheques to private service organisations (NGOs) in other states, and are allegedly taking back around 50 per cent of the amount in cash. This development has come to the notice of the government, he added.He called this a fraudulent practice and stated that such misuse of Karnataka’s share of CSR funds is unacceptable. “It is your responsibility to ensure these funds are used for the development of our schools,” he told the officials.“We don’t need CSR funds in cash.

Instead, let the companies build one public school per three Gram Panchayats. If land is required, the government will provide it. You identify the land, we will provide the school design. Let the companies construct the buildings and provide infrastructure. Their name can be displayed on the school building alongside the government’s,” he proposed.

The state receives around Rs 8,000 crore annually through CSR funds. A year ago, directions were issued to utilise these funds for constructing CSR model schools. However, the implementation has been unsatisfactory, Shivakumar noted.

He expressed strong displeasure over the slow progress in the construction of CSR-funded public schools in Karnataka, modelled after the Karnataka Public Schools concept.He added, “In my constituency, we are constructing 13 CSR public schools, each costing Rs 9 to Rs 12 crore. But work is progressing only in a few locations, and most places show a complete lack of interest.”