Bengaluru: Hinting at possible misuse of corporate social responsibility (CSR) funds in the state, chief minister DK Shivakumar Thursday warned industrialists and private educational institutions of consequences if they do not invest in rural education.Addressing Global CSR and Sustainability Summit, organised by Federation of Karnataka Chamber of Industry and Commerce (FKCCI), the CM said the state has around Rs 10,000 crore in CSR funds. Alleging that a significant amount is getting misused, he said a dedicated team will be formed to keep a watch on its spending.Drawing in a case study from the private schools run by his daughter, the CM said these institututions earn a lot of money and they should compulsorily adopt govt schools in rural Karnataka. If they don’t, there will be no other option than to cap the fees charged by them, he said.While a significant share of CSR activity has been in Bengaluru, the CM urged industrialists to invest in education of rural Karnataka too. According to data shared by FKCCI, the state is estimated to have got Rs 8,900 crore in CSR funds in the last five years.Data from National CSR Data portal in FY 2023/24 shows 64.9% of Karnataka’s CSR spend did not carry a district tag. Even in 2024/25, while the spending grew, the same pattern persisted.Reacting to the CM’s call, FKCCI president Uma Reddy said improving education is not the govt’s sole responsibility. “It’s very good that the CM has channeled this and ensured CSR funds get distributed to rural schools too.”However, luring companies to invest in areas where they do not function remains a challenge, according to CSR consultant Shan Bhogue VS. “According to Section 135 of companies Act, they (firms) are only required to give preference to areas where they operate. While they can still invest in rural areas of Kalaburagi and Yadgir, it will be difficult for govt to enforce it,” he explained.
