Audit Demand Grows as UltraTech’s ₹6.77 Cr CSR Claim Fails Proof.

UltraTech Cement CSR Audit Demand: ₹6.77 Crore Unaccounted for in Tribal MP

• The Escalating CSR Claims: From ₹3.29 Crore to a Mirage

• Ground Report: Tribal Villages Left with Contaminated Water

• Government Inaction: Four Official Reminders Ignored

A Sprouts News Special Investigation has uncovered major discrepancies in UltraTech Cement’s ₹6.77 crore CSR spending in Shahdol, Madhya Pradesh. Despite official claims of completed projects, ground reports reveal contaminated water, zero visible infrastructure, and unmet promises to tribal villagers. Government departments, including the Ministry of Tribal Affairs, reportedly ignored multiple complaints. The findings have sparked calls for a forensic CSR audit and corporate accountability in India’s resource-rich tribal regions.

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UltraTech Cement CSR Under Scanner: ₹6.77 Crore Claim Lacks Proof, Tribal Villages Deprived

A Sprouts News Special Investigation Team (SIT) probe has uncovered a massive discrepancy in UltraTech Cement Limited’s Corporate Social Responsibility (CSR) spending. The company reported spending ₹6.77 crore near its Bicharpur Coal Mine in Shahdol. However, our ground investigation found zero evidence of completed development projects for local tribal communities.

This alleged financial blackhole raises serious questions about corporate governance. It also highlights systemic failures in governmental oversight. The Ministry of Tribal Affairs (MoTA) received multiple complaints but took no substantive action. Our investigation tracks the money, the unmet promises, and the bureaucratic silence.

The Escalating CSR Claims: From ₹3.29 Crore to a Mirage

Initial Promises for Tribal Welfare Vanish

UltraTech’s initial CSR proposals for 2020-22 outlined a ₹3.29 crore plan. This fund was dedicated to essential infrastructure in Sindhuri, Kalyanpur, and Bicharpur villages. Proposed projects included building toilets, installing drinking-water pipelines, and organising health camps. Skill development centres for the Baiga and Gond tribal communities were also promised.

CSR Budget Inflates Without Tangible Outcomes

By the 2024-25 reporting period, UltraTech’s claimed CSR expenditure ballooned to ₹6.77 crore. Despite this significant increase, no major infrastructure projects materialised on the ground. Our investigators found no new toilets, water pipelines, or functional skill centres. The allocated funds seem to have been redirected or reported without physical verification.

Funds Diverted to Non-Essential Activities

Corporate Social Responsibility funds were allegedly spent on unrelated activities. Company documentation and local sources indicate money went towards distributing silver coins. Football tournaments and prizes replaced promised health and sanitation initiatives. Financial donations for local festivals were also recorded under CSR headings.

Ground Report: Tribal Villages Left with Contaminated Water

Sprouts News Team Finds No Development Evidence

The Sprouts News investigation team conducted a field visit in October 2025. We walked through the same villages mentioned in UltraTech’s official CSR filings. In Sindhuri, Kalyanpur, and Bicharpur, we found no trace of the company’s claimed developments. The reality for residents is a daily struggle for basic necessities like clean water.

Women Forced to Collect Polluted River Water

Our team witnessed women collecting water from the heavily polluted Murna River. The river’s surface was visibly contaminated with coal oil and sludge. A prior study by a local health organisation confirmed severe water quality degradation. The report noted a 19% rise in Biological Oxygen Demand (BOD).

Environmental Neglect Amidst CSR Claims

The same study highlighted an 18% fall in dissolved oxygen levels in the river. This pollution directly threatens the health of tribal communities relying on the water. Despite this environmental crisis, UltraTech’s CSR reports show zero rupees allocated for river clean-up or water purification projects.

Government Inaction: Four Official Reminders Ignored

Complaints Bounce Between Ministries with No Result

The grievance regarding UltraTech’s CSR spending has seen unprecedented bureaucratic ping-pong. Official letters were forwarded from the President’s Secretariat to the Department of Public Policy and Welfare (DoPPW). The Ministry of Personnel, Public Grievances and Pensions (MoPP&P) issued four separate reminders to relevant officials.

Ministry of Tribal Affairs Fails to Act on UltraTech CSR Case

Each official reminder demanded an “action-taken report within 21 days” from the Ministry of Tribal Affairs (MoTA). These directives were addressed to Deputy Secretary (Tribal Affairs) Shri Ashok Kumar Gupta. Despite four deadlines, no substantive report has been submitted or action taken against UltraTech Cement.

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Related  Article:  UltraTech Group Faces ₹3.29 Cr CSR Fraud, River Pollution.

Systemic Oversight Failure and Corporate Accountability

This inaction represents a severe failure in the CSR monitoring mechanism. It points to a larger problem of inadequate oversight for companies operating in tribal regions. The legal framework under the Companies Act 2013 mandates credible CSR spending. This case suggests those rules are being ignored without consequence.

Call for Action: Sprouts News Demands Multi-Agency Audit

Immediate Inspection and Forensic Audit Required

Sprouts News demands immediate intervention from three key central ministries. We call upon the Ministry of Tribal Affairs (MoTA) to send inspectors to the villages immediately. The Ministry of Corporate Affairs (MCA) must order a forensic CSR audit under Section 135(7) of the Companies Act.

Environmental Regulation and Criminal Probe Needed

The Ministry of Environment, Forest and Climate Change (MoEFCC) must act. Using Sections 5 and 19 of the Environment Protection Act 1986 is crucial. The Central Pollution Control Board (CPCB) should investigate the Murna River pollution. A CBI or ED probe into the financial trail is also necessary.

Accountability Must Replace Empty CSR Reports

Corporate Social Responsibility was designed to share corporate profits with communities. It was meant to build essential infrastructure and improve citizen welfare. The UltraTech case in Shahdol shows how CSR can become a mere statistical exercise. This deprives India’s most vulnerable tribal populations of their rightful benefits.

When ₹6.77 crore can be claimed without proof, the system is broken. Glossy annual reports cannot substitute for real toilets, clean water, and healthcare. The relevant ministries must transition from passive paperwork to active, on-ground verification. Corporate accountability is not optional; it is a fundamental pillar of sustainable development.