Strengthening Corporate Liability For Environmental Damage In India: Policy And Legal Reforms For Sustainable Development
- IJLLR Journal
- Mar 24
- 1 min read
Updated: May 14
Sukriti Verma, LL.M., Amity Law School, Amity University
Dr Jyotsna Singh, Assistant Professor, Amity Law School, Amity University
ABSTRACT
Corporate environmental liability is a critical issue in India, where rapid industrialization has led to significant ecological damage. Despite a well- established legal framework, including the Environment Protection Act, 1986, and the Water and Air Acts, enforcement remains weak due to regulatory inefficiencies, corporate non-compliance, and insufficient penalties. This paper examines the evolution of corporate liability for environmental damage in India, analyzing key legislation, regulatory bodies, and landmark judicial decisions such as Vellore Citizens’ Welfare Forum v. Union of India (1996) and the Sterlite Industries Case (2018-2019).
The study identifies major challenges in enforcing corporate liability, including regulatory gaps, corporate influence, weak penalties, and lack of public participation. A comparative analysis of global best practices, such as the CERCLA (USA), the EU Environmental Liability Directive, and Japan’s strict waste management laws, provides insights into strengthening India’s regulatory framework. This research suggests key reforms, including amending environmental laws to impose stricter penalties, enhancing the enforcement capacity of the National Green Tribunal (NGT), and integrating ESG (Environmental, Social, and Governance) compliance into corporate governance. By adopting a more stringent and preventive approach, India can ensure stronger corporate accountability and sustainable development.
The study concludes that balancing industrial growth with ecological conservation requires comprehensive legal and policy reforms, reinforcing corporate responsibility for environmental protection while maintaining economic progress.
Keywords: Corporate Environmental Liability, Sustainable Development, Regulatory Enforcement, Judicial Precedents, ESG Compliance.
