THE CURIOUS CASE OF CRIMINALIZABLE CORPORATE HARMS IN INDIA: THE 1991 ECONOMIC REFORMS AND THE NEOLIBERAL TURN

T.H. Vishnu

Abstract

In this study, I argue that the rationale determining criminalisable corporate harms has undergone a radical transformation from protection of public interest to boosting ease of doing business in India. The economic reforms (reforms) of 1991 is identified as the root cause of such transformation. I argue that corporate harms were initially criminalised majorly to protect public interest in the pre-reforms era. With the new mandate of creating a market-friendly economy, the reforms transformed this rationale having public interest as its major focus, to ease of doing business. Consistent with the neoliberal framework of the reforms, the ease of doing business rationale and the consequent decriminalisation of corporate harms are justified as incentivising private participation and generating wealth, benefitting all through the trickling-down effect. However, the data on economic inequality in India post-reforms suggests that, in practice, the reforms have disproportionately benefitted a few. On this basis, I argue that the ease of doing business rationale, stemming from the reforms as an important tool to achieve its promise, inherently carries this contradiction of the reforms between its promise and actual effects. Finally, I argue that this rationale, with its focus on profits benefitting a few, is contradictory to the purpose of criminal law to benefit the interest of all. 

Keywords: Corporate harm, Ease of doing business, Decriminalisation, Neoliberalism, Economic reforms, Public interest.

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