Corporate Criminal Liability In India: The Challenge Of Punishing The Artificial Person
- IJLLR Journal
- 8 hours ago
- 2 min read
Kashish, Bennett University
ABSTRACT
The concept of corporate criminal liability acknowledges that companies, not being natural but legal entities, can nevertheless commit offences by the acts and omissions of their officers, directors, and employees. This paper delineates the development of corporate criminal liability in India, examines the statutory and judicial framework under the Companies Act of 2013, and evaluates the conceptual and functional Challenges of imposing criminal sentences upon a corporation. The findings of the study are based upon comparative perspectives from other jurisdictions and conclude with recommendations on codification, more stringent enforcement, and governance structures.
Introduction
The Indian corporations have become phenomenally powerful and influential in the twenty- first century. Economic liberalisation, technological innovation, and global connectivity today enable businesses to operate in a wide range of sectors, from manufacturing and banking to medicine, infrastructure, and digital services. Their activities affect consumers, investors, employees, the environment, and the economy as a whole. Greater levels of corporate involvement have been paralleled by an increase in the incidence of complex financial frauds, environmental disasters, human rights violations, and other regulatory transgressions. These facts have confronted the legal systems with a fundamental question: how can artificial legal entities be effectively regulated and punished by a criminal law that was originally designed to punish human wrongdoing?
In an attempt to address this problem, corporate criminal liability recognises that corporations can act through real people and be held accountable for criminal activity despite being artificial entities. In India, this field has changed from traditional common-law reluctance to modern judicial approval. In the past, judges ruled that corporations could not be imprisoned, appear in person in criminal court, or have the required mens rea. These presumptions shielded businesses from harsh criminal prosecution, especially for intent-based offences. However, contemporary jurisprudence recognises the practical necessity of criminal culpability, given the magnitude of the harm that corporate misbehaviour can cause.
