CORPORATE CRIMINAL LIABILITY IN INDIA: EVALUATING THE LEGISLATIVE ARCHITECTURE

AUTHOR – ASHMEET SINGH* & DR. GIRIJA NAND**

* STUDENT OF LL.M, SANT BABA BHAG SINGH UNIVERSITY, JALANDHAR

** ASSISTANT PROFESSOR IN LAW, SANT BABA BHAG SINGH UNIVERSITY, JALANDHAR

BEST CITATION – ASHMEET SINGH & DR. GIRIJA NAND, CORPORATE CRIMINAL LIABILITY IN INDIA: EVALUATING THE LEGISLATIVE ARCHITECTURE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (3) OF 2026, PG. 981-991, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Corporate criminal liability has grown in importance in modern legal systems, especially given businesses’ substantial influence over economic activity and social institutions. In India, the emergence of corporate criminal liability reflects a growing realization that businesses, despite their artificial legal status, must be held liable for illegal activities committed while conducting business. Corporate criminal liability is the legal responsibility imposed on corporations for offenses committed by its employees, agents, or representatives while working on behalf of the business. Ideally, such liability should operate as a deterrent, encouraging responsible corporate behaviour rather than merely serving as a form of punishment.

This study critically explores and evaluates India’s legislative framework controlling corporate criminal responsibility, including its scope, efficacy, and limitations. It analyses important statutory provisions under the Companies Act, 2013, Prevention of Corruption Act, 1988, Prevention of Money Laundering Act, 2002, and the Bharatiya Nyaya Sanhita, 2023, which together form the legal foundation of corporate accountability in the country. Apart from legislative provisions, the judiciary has also played an important role in expanding the scope of corporate criminal liability. Courts have clarified in many historic decisions that corporations can be prosecuted even for offenses requiring the existence of mens rea, enhancing corporate accountability procedures.

Despite these developments, certain challenges continue to affect the effectiveness of the existing framework. Difficulties in attributing criminal intent to corporations, inconsistencies in the imposition of penalties, and practical challenges in enforcing sanctions against large corporate entities remain significant concerns. By analysing the interaction between statutory provisions and judicial developments, this paper discusses the strengths and drawbacks of India’s  legislative framework in determining the criminal liability of corporations, emphasizing the importance of clearer legal rules, uniform sanctions, and greater compliance procedures to improve corporate accountability.

KEYWORDS

Corporate Criminal Liability, Mens Rea, Economic Offences, Vicarious liability, Regulatory Enforcement