HISTORICAL AND LEGISLATIVE DEVELOPMENTS OF CSR IN INDIA

AUTHOR – RAKHSHAN AHMAD* & DR. ROSHINI SHRIVASTAV**

* LLM (BUSINESS LAW), AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

** ASSISTANT PROFESSOR AT AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

BEST CITATION – RAKHSHAN AHMAD & DR. ROSHINI SHRIVASTAV, HISTORICAL AND LEGISLATIVE DEVELOPMENTS OF CSR IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (1) OF 2026, PG. 660-665, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This paper provides an exhaustive analysis of the trajectory of Corporate Social Responsibility (CSR) in India, tracing its metamorphosis from voluntary philanthropy rooted in religious and cultural ethos to a statutorily mandated governance framework unique to the global legal landscape. The study delineates the historical evolution of social responsibility, moving from the Gandhian ideal of ‘Trusteeship’ and pre-independence industrial philanthropy to the modern paradigm of ‘Stakeholder Responsibility’.

Central to this research is a granular dissection of the Companies Act, 2013, specifically Section 135, which made India the first country to legally mandate CSR spending. The paper scrutinizes the complex web of legislative amendments from 2014 through the fiscal year 2026, highlighting the regime’s shift from a “comply or explain” approach to a rigorous “comply or penalize” model. Key legislative developments analysed include the decriminalization of offenses, the introduction of the 2021 Amendment Rules regarding unspent accounts and impact assessments, and the Companies (Amendment) Bill, 2025, which proposes lowered applicability thresholds and heightened penalties.

Furthermore, the paper examines key judicial interpretations that have shaped compliance standards, including Technicolor India and Lantio Communications. It concludes by exploring the emerging frontier of climate litigation, specifically the landmark Supreme Court judgment in M.K. Ranjitsinh (2025). This ruling links CSR to ‘Corporate Environmental Responsibility’ (CER) and the constitutional duty under Article 51A(g), effectively elevating environmental stewardship from a discretionary activity to a constitutional imperative.

KEYWORDS: Corporate Social Responsibility (CSR), Section 135, Trusteeship, Comply or Penalize, Corporate Environmental Responsibility (CER)