Lok Sabha Sends Corporate Laws (Amendment) Bill to JPC Amid CSR Concerns

The Lok Sabha on Monday referred the Corporate Laws (Amendment) Bill, 2026, to a Joint Parliamentary Committee (JPC) for detailed scrutiny, following a voice vote amid sharp political exchanges over its provisions.

The Bill was introduced by Finance Minister Nirmala Sitharaman during the ongoing Budget Session and was immediately sent for further examination after she herself proposed the move, signalling the government’s willingness for wider consultation.

The proposed amendment seeks to modify key provisions of the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 , with a focus on improving the ease of doing business and strengthening corporate governance in a rapidly evolving economic environment.

A major feature of the Bill is the decriminalisation of several minor corporate offences. The proposed changes aim at replacing criminal liability with monetary penalties for procedural lapses, thereby reducing litigation and easing the compliance burden on businesses, especially startups and small firms.

The legislation also proposes rationalisation of penalties, simplification of compliance requirements, and streamlining of regulatory processes. These reforms are based on recommendations of the Company Law Committee and are intended to create a more facilitative business environment while encouraging investments.

However, the Bill triggered strong objections from opposition leaders, including Manish Tewari, Saugata Roy, and T Sumathy, who alleged that it could dilute provisions related to Corporate Social Responsibility (CSR) .

The opposition also raised concerns over delegation of legislative powers, arguing that key aspects such as thresholds and compliance rules could be decided through subordinate legislation rather than direct parliamentary oversight.

Responding to the criticism, Sitharaman clarified that the core CSR mandate remains unchanged and that the Bill only refines the calculation of net profits , not the requirement of mandatory spending. She emphasised that the legislation has been formulated after nearly two years of extensive deliberations with stakeholders.

During the debate, Home Minister Amit Shah countered the opposition’s procedural objections, while Speaker Om Birla approved the motion to refer the Bill to the committee.

The latest development confirms that the Bill will now undergo detailed examination by the JPC, which is expected to consult stakeholders and recommend changes before it is brought back to Parliament. Experts believe the outcome will play a crucial role in shaping India’s future regulatory framework, balancing business efficiency with accountability.