Corporate Criminal Liability In India: A Critical Study Of White-Collar Crime And Regulatory Enforcement
- IJLLR Journal
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Dr. Pradnya Yadav, Assistant Professor, DES Shri Navalmal Firodia Law College, Pune.
ABSTRACT
Corporate criminal liability occupies a contested yet increasingly vital space in India's legal landscape. As white-collar crime continues to undermine economic integrity, public trust, and regulatory governance, courts and legislatures have grappled with the fundamental question of whether a corporation an artificial legal person can bear criminal culpability equivalent to a natural person. This article critically examines the doctrinal evolution of corporate criminal liability in India, tracing its historical antecedents through colonial-era statutes to modern regulatory frameworks such as the Companies Act, 2013, the Prevention of Corruption Act, 1988, and the Prevention of Money Laundering Act, 2002. Drawing upon landmark judicial decisions including Standard Chartered Bank v. Directorate of Enforcement and Iridium India Telecom Ltd. v. Motorola Inc., this article analyses the theoretical foundations of corporate mens rea, the doctrine of vicarious liability, and the "identification" or "alter ego" theory. The paper further scrutinises the adequacy of India's enforcement machinery including the Enforcement Directorate, Serious Fraud Investigation Office, and Securities and Exchange Board of India in effectively prosecuting corporate misconduct. It concludes by identifying systemic lacunae and proposing structural reforms towards a more coherent and effective regime of corporate criminal accountability.
Keywords: Corporate Criminal Liability; White-Collar Crime; Corporate Governance; Economic Offences; Regulatory Enforcement; Bharatiya Nyaya Sanhita, 2023; Corporate Fraud; Financial Crime.
