financial year must spend at least 2% of its average net profits during the last three financial years on CSR activities covered in Schedule VII of the Companies Act, 2013. 73. Section 135, Schedule VII and the Companies (Corporate Social Responsibility Policy) Rules, 2014 were notified on 27th February, 2014 and have come into effect from 1st April, 2014. Prior to the enactment of the new Companies Act, there existed only a set of Voluntary Guidelines issued by the Ministry of Corporate Affairs in 2009. 74. Prior to its notification on 27th February, 2014 Schedule VII of the Companies Act, 2013 permitted companies to carry out CSR activities under ten heads which included "reducing child mortality"(at Sr. no. 4 of the unnotified Schedule VII) and "combating HIV, AIDS, malaria and other diseases" (at Sr. no. 5 of the un-notified Schedule VII). 75. However, when Schedule VII was notified on 27th February, 2014 these two entries were inexplicably dropped from the list of permitted CSR activities. The only area under the then notified Schedule VII was "preventive healthcare". Since the notified Schedule VII would have closed the CSR funding route as an option to sponsor treatments for rare diseases, this Court vide its order dated 28th February, 2014 directed the Ministry of Corporate Affairs to re-examine the matter. 76. The Ministry of Corporate Affairs filed a letter dated 24 th March, 2014 before this Court stating "Ministry of Corporate Affairs has decided to amend the Schedule VII of the Companies Act, 2013 to bring in clarity regarding the ambit of 'promoting preventive health care' as included in the said Schedule. It has been decided to amend the said item in Schedule VII as follows: 'promoting health care including preventive health care'. This W.P.(C) 7279/2013 Page 36 of 41

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