Rethinking Criminal Liability of Corporations in India

Abstract

The Indian Law Commission has previously proposed new types of criminal penalties for business offences, including exemplary fines, license revocation, and loss of fiscal benefits.11 However, the courts ruled that corporations cannot be held liable for offences that result in corporeal punishment or incarceration. It was further noted that the corporations can be held liable for certain crimes but not subject to imprisonment, which is the current law of the country.12However, in Keshub Mahindra v. Union of India, a different opinion was taken, and the accused was found criminally liable for manslaughter while serving as Managing Director of Mahindra and Mahindra. In the Indian context, the essence of the offence is yet to be determined.13Thus, despite, myriad precautionary, standard-setting, and even punitive labor laws, there is a vacuum when it comes to corporate liability in India. This view can be corroborated by analyzing the existing Indian legislations on the issue