GREENWASHING AND CORPORATE LIABILITY IN INDIA: A CRITICAL ANALYSIS OF THE EXISTING LEGAL AND REGULATORY FRAMEWORK

Abstract

Greenwashing is when a company makes false or exaggerated claims, or uses a vague, one-sided or weak or limited substantiation to communicate environmental benefits. It can lead to a misallocation of sustainable investments, affect consumer decision making and erode confidence in corporate environmental reporting. This paper critically considers the effectiveness of India's law and regulation in combating greenwashing and holding companies liable. Uses a doctrinal approach with reference to the official and self-regulatory information described, the legal position is up to 31 October 2026. The study is based on the following: Consumer Protection Act, 2019 and the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024, by the Central Consumer Protection Authority (CCPA); Securities and Exchange Board of India (SEBI) Guidelines on Business Responsibility and Sustainability Reporting (BRSR) and Green-debt safeguards; Companies Act, 2013; Advertising Standards Council of India (ASC) green-claims standards; and Environment (Protection) Act, 1986, as amended. The quantitative data suggests that there is a material enforcement concern – while 211 advertisements were investigated in 211 of which 211 required modifications in 2024-25, only 34 were investigated in 2023-24 and all these 34 required modification for lack of substantiation. This is an administrative review sample, and not a population estimation of greenwashing in India. The analysis reveals that India has taken a step beyond a voluntary approach, notably with the 2024 CCPA Guidelines and SEBI's BRSR Core regime. But the framework still has a number of drawbacks, and is spread across consumer regulation, securities regulation, corporate regulation and environmental regulation. The main deficiencies include lack of consistency in assurance, small value-chain verification, poor transparency of enforcement results, and the lack of a cohesive taxonomy for green claims and uncertainty in measuring life-cycle claims. The paper suggests a risk-based approach to verifying independently, board-level claim governance, standardised disclosure processes, coordinated enforcement and transparent reporting of regulatory findings.