Greenwashing And Corporate Liability In The Era Of ESG Regulation: An Indian Corporate And Commercial Law Analysis

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Prince Yadav, LL.M., Jagannath University, Jaipur

Ms. Priyanka Gehlot, Assistant Professor, Jagannath University, Jaipur

ABSTRACT

Greenwashing has emerged as a significant legal and governance concern in India as sustainability claims become embedded in corporate disclosure, advertising, and capital market communication. With the introduction of the Central Consumer Protection Authority’s 2024 Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims, the SEBI BRSR framework and the BRSR Core assurance architecture, sustainability messaging has gone from being a largely reputational domain to a legally regulated space. This article examines the evolving Indian framework governing misleading environmental claims, the liability pathways available under consumer protection, securities regulation, and advertising standards, and the practical enforcement challenges that remain. It argues that while India has not yet developed a large body of reported BRSR-specific litigation, regulatory scrutiny and compliance expectations are sufficiently mature to support corporate liability for false, vague, or unsubstantiated ESG claims. The article concludes that Indian law is moving toward a more integrated model of disclosure accountability, in which greenwashing will increasingly attract regulatory, civil, and reputational consequences.

Keywords: Greenwashing; ESG regulation; BRSR; corporate liability; consumer protection; SEBI; misleading environmental claims.

647. GREENWASHING AND CORPORATE LIABILITY IN THE ERA OF ESG REGULATION- AN INDIAN CORPORAT

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