Published on 21st March 2025
Authored By: Sishi S
Chennai Dr. Ambedkar government law college Pudupakkam
Abstract
This research considers the changing landscapes of corporate accountability towards water pollution in India, critically examining through the lens the legal frameworks and the actions under which corporations induce water resource pollution, particularly that of penalties and liabilities under the Indian environmental framework. The study explores the interface of CSR and regulatory measures to test whether the existing penalty and enforcement mechanism is adequate enough to check the harmful corporate practices. Comparative analysis of civil and criminal liabilities in the paper has expressed judicial activism, role of EIA, and the effectiveness of regulatory bodies such as CPCB and SPCBs in checking corporate malpractices. This research also entails the convergence of corporate accountability and human rights, which in this case was the right to clean water and the manner in which legal redress has taken a new form in modeling the future face of corporate responsibility in the quest to save water. Again, this research paper further incorporates some of the limitations and challenges in enforcing accountability and recommendations put forth toward strengthening the legal framework to bring about enhanced corporate compliance and protection of the environment.
Introduction
Corporate liability in the case of water pollution has become the most pressing issue in India, where rapidly growing industries and urbanization lead to increased severe environmental degradation-in water resources. The corporations causing unchecked water industrial discharge avoid full accountability for some weaknesses in enforcing environmental laws. This paper discusses the current legal structure on corporate liability for water pollution in India, with a special focus on penalties and the effectiveness of enforcement mechanisms. This study analyses relevant statutes, judicial decisions, and regulatory practices to assess the adequacy of current laws and propose strategies for improving corporate accountability in protecting water bodies.
Legal Framework Governing Water Pollution: An Indian Perspective
The legal framework on water pollution in India is made to address the increasing threats from industrial discharge, urbanization, and agricultural runoff to water resources. The water pollution prevention laws in India have established a strong legislation that governs and prevents this water pollution. In this regard, the main Act is the Water (Prevention and Control of Pollution) Act, 1974. According to this Act, the Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) are allowed to monitor, control, and prevent water pollution caused by industries, municipalities, etc.
The Water Act of 1974 forms the legal framework for the development of effluent standards and regulation of discharges into water bodies. Industries are made to seek consent from the relevant Pollution Control Boards before discharging effluents into water bodies. Failure to comply with such regulations will attract penalties, suspension of operations, and even closure of polluting units. The Act further permits the prosecution of violators, although enforcement has been difficult given the resource limitations and inefficiencies of the regulations.
Apart from the Water Act, key acts that touch upon water pollution include the Environment Protection Act, 1986, and the National Green Tribunal Act, 2010. As for the first, the Act is a significant comprehensive framework within which environmental protection takes place – water quality management; and the latter is a specialized tribunal that adjudges environmental disputes within the country.
Despite all these legal measures, the main difficulty lies in enforcing it. There is little monitoring, delayed action, and poor penalties at times, leading to very minimal compliance from corporate houses. The Indian country’s law framework in regulating water pollution needs to bring about reforms in enforcement, transparency, and imposing better structures on penalty.
Penalties and Liabilities for Corporations: Current Legal Provisions
The water pollution law regarding corporate accountability, in India is mainly provided through the Water (Prevention and Control of Pollution) Act 1974, and the Environment Protection Act, 1986. These provisions require that an industrial concern may not discharge effluents unless it has given prior consent for the same to the CPCB or SPCBs, under strict adherence to specified effluent standards. Consequences of non-compliance Under Section 43 of the Water Act penalties are severe, whereby a violator can attract fines as high as ₹1 lakh accompanied with daily fines for a continued breach.
In more serious cases of corporate negligence, Section 42 of the Water Act provides for criminal liability, including imprisonment for up to 6 years for company executives who wilfully violate pollution control norms. The Environment Protection Act supplements this by providing penalties for environmental harm, including fines of up to ₹1 lakh and imprisonment for up to 5 years for those responsible for significant environmental damage.
The National Green Tribunal (NGT) also comes into play to speed up the process of law for polluting companies. NGT can provide penalties, award compensation to affected communities, and even close non-compliant industries. Although all these provisions are exhaustive, problems in enforcement exist in the form of regulatory loopholes and lack of monitoring. Stiffening such mechanisms with heavier penalties would ensure that the corporate world remains accountable and that water resources are well protected in India.
Judicial Interpretation of Corporate Liability in Water Pollution Cases
Judicial jurisprudence on the issue of corporate liability in matters of water pollution in India grew through landmark judgments that assisted in defining the space of corporate responsibility and the administration of environmental law. The courts held repeatedly that water pollution being direct or indirect cannot be eschewed by the corporations, and in general, the principle of “polluter pays” be applied uniformly.
The case M.C. Mehta v. Union of India in 1987 saw the Supreme Court ruling over industrial pollution issues concerning the Ganga and Yamuna rivers. In the ruling, the corporations which discharged untreated industrial effluents into these rivers had to pay for compensation in relation to damage caused. The case development of the landmark was important since it identified corporate responsibility, paving way for further similar cases involving the restoration costs on industries.
Another landmark case is Vellore Citizens Welfare Forum v. Union of India (1996), in which the Supreme Court expanded the liability to include not only the immediate polluting activity but also the long-term ecological consequence. The Court ordered that the corporations establish mechanisms for pollution control and held them liable for complying with environmental regulations.
In Indian Council for Enviro-Legal Action v. Union of India, 1996, the Court emphasized the “polluter pays” principle by directing a corporation to pay compensation for contaminating groundwater in a region. The judgment further generalized corporate liability away from the purely water bodies-related issue and extended the same to generalized environmental degradation.
These cases reveal a judicial trend that directly holds corporations liable for causing environmental damage and orders preventive measures to operate in a sustainable manner, but the penalties also work as incentives as well as deterrents for the purpose of compliance. The difficulty lies in ensuring consistent judgment enforcement along with real environmental improvements by corporate accountability.
The Role of Corporate Social Responsibility (CSR) in Water Pollution Prevention
The emerging issue in reducing the impacts of industrial water pollution is CSR, as corporations assume this key component of action against pollution caused by industries in India. Penalties under the Water (Prevention and Control of Pollution) Act, 1974 are given against violating companies against environmental norms; CSR adds a dimension through which a company voluntarily enters the environment into water conservation and pollution prevention activities.
As stipulated under the Companies Act, 2013, large corporates are mandated to invest at least 2% of their average net profits on CSR activities. Such activities are now undergirded with the principles of environmental protection, such as saving water and proper industrial effluent treatment before discharge and contributing to community-based water conservation programs.
Some of the leading corporations have embraced sustainable water practices. For example, they have installed zero-liquid discharge systems, recycle water in their manufacturing processes, and restored water bodies that were affected by their operations. For example, companies in the textile and chemical industries have invested in wastewater treatment plants, ensuring that effluents meet prescribed standards before being released into water bodies.
Such programs also extend CSR initiatives to the local communities; companies fund water purification, rainwater harvesting, and watershed management. This community-centric approach not only reduces the stress on local water resources but also fosters goodwill between corporations and the public.
With such progress, though, CSR efforts in India are still often branded as being at the discretion of the organizations carrying them out. Such voluntarism can also result in its rather spotty execution. To realize its full effectiveness in preventing water pollution, regulation, monitoring, and a law that binds is required.
Environmental Impact Assessments (EIAs) and Corporate Accountability:
Corporates are held liable in case environmental damage takes place due to its operations, ensuring corporate accountability. Generally, in industries prone to water pollution, EIAs would be undertaken and also where projects relate to particular industrial types are implemented in India. Corporations must analyze environmental impacts associated with proposed projects that shall be taken under the Environment Protection Act of 1986 and EIA Notification of 2006. An EIA’s prime objective is to assess the impacts of industrial activities on the environment, which includes water bodies, and suggests measures to mitigate adverse outcomes.
In water pollution, EIAs identify the sources of water contamination. This may arise from industrial discharge, effluent run-off, or improper waste management practices. They give the corporations the opportunity to clearly indicate the measures they will use to control the pollution, like the installation of wastewater treatment plants, cleaner production technologies, and ensuring that no water body is adversely affected. The EIA process also allows for public consultation, where the local communities and stakeholders can air their concerns on potential water pollution, holding the corporations accountable to the public.
Although EIAs are legally mandatory for some projects, the implementation has been criticized. The assessment process is weak because of weak monitoring and lack of enforcement of compliance with the recommended mitigation measures. Some corporations may downplay or even ignore long-term environmental risks in their EIA reports so as not to incur delays or additional costs.
Stricter enforcement, transparent monitoring, and stronger penalties for non-compliance are very important factors to ensure EIAs do enhance corporate accountability. Improving the quality of EIAs, holding corporations accountable for their commitments, can go a long way toward bringing down water pollution and lead to more sustainable industrial practices.
Corporate Accountability and Human Rights: Access to Clean Water
Corporate accountability regarding human rights, including access to clean water, is an emerging issue in India. With the intensification of industrialization and urbanization, corporations are a significant source of water pollution, which threatens the fundamental human right to clean and safe water. Indeed, as acknowledged by the United Nations General Assembly in 2010, access to clean water is a human right for life, health, and dignity. The role of the corporations is now beyond merely fulfilling legalistic obligations to avoid causing water pollution and to guarantee the same access to safe water by every community.
Water pollution through discharge of untreated industrial effluents into the local water body is quite common for the corporations in industries like manufacturing, mining, and textiles. This directly puts the health and well-being of surrounding populations, especially in marginalized communities that depend on these water sources for drinking, agriculture, and sanitation. Even though Indian law holds corporations accountable for water pollution, the human rights perspective adds another layer in demanding that corporations not only avoid harm but contribute positively to the right to water.
For instance, they may practice water stewardship where they will cut down on the quantity of water consumed by the company, upgrade effluent treatment procedures, and make investments that seek to modernize the water structures within their catchment. This may include cleaning polluted water bodies or being part of investment into a water supply system to a community.
Integrating human rights principles into corporate accountability will put pressure on the corporation to do more than simply comply with the law and will compel them to take active measures to protect the right to water. Strengthening regulations by promoting transparent reporting and adopting corporate social responsibility initiatives in relation to water conserved will set companies back, making them respect their duty toward human rights and reduce their impacts on the environment as well.
Recommendations for Strengthening Corporate Accountability in Water Pollution
Such is the need to strengthen corporate accountability in water pollution to protect Indian water resources, ensuring the health and well-being of its citizens. The Water (Prevention and Control of Pollution) Act, 1974, amongst other legal framework mechanisms, facilitates holding corporations liable. However, there are aspects that need attention to ensure strong enforcement and liability on the corporate front.
- Strengthening Regulatory Enforcement:
It is suggested that the regulatory bodies, like Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs), be strengthened to monitor corporate compliance. The said strength will include regular inspection funding, expanded scope of environmental monitoring, and consistent implementation of pollution standards on industry scales. The said technological introduction of real-time monitoring will better assist in detecting the violations.
- Strengthening Penalties and Liabilities:
Presently, the fines and imprisonment against corporate violations do not act as a deterrent. The penalty should be strengthened and the punishment more stringent against repeat offenders, forcing corporations to be more responsible in controlling pollution. The penalty must be in proportion to the intensity of pollution and the size of the corporate body, and the fines must be so structured that they are effective.
- Corporate Transparency and Accountability
Corporations are made more transparent and accountable by publicly required disclosures from corporations regarding water usage, effluent discharge, and pollution control measures. Third-party audits of corporate environmental performance by third parties on a regular basis to make public this information also strengthen corporate responsibility.
- Corporate Social Responsibility (CSR) for Water Management
Companies should be challenged to undertake CSR activities by integrating water saving and pollution control measures. Motivating corporations to finance local community initiatives in watersheds or purification of the water will result in a positive contribution to their own community and society as a whole.
- Environmental Stewardship and Innovation
Investment in sustainable technologies should be encouraged for corporations that use the least possible amount of water and produce the least possible amount of effluent. Financial incentives, such as tax breaks or subsidies, should be provided to those industries which opt for environmental-friendly technologies; this will encourage innovations in pollution prevention.
If implemented above recommendations are placed, the India system for holding corporations liable and accountable for acts will make better provision towards safe-guarding nation’s water resource through participation and involvement of these corporations along with a measure towards environment friendly sustainability.
Conclusion
In conclusion, corporate accountability in water pollution is the key towards securing water resources for the future generations of India, resulting in sustainable development. The current legal systems offer a foundation on which corporations could be held accountable but, in that process, provide significant obstacles to enforcement, compliance, and effectiveness of punishment. Such an enhancement of corporate accountability needs to be done by building up regulatory strength, increasing penalties, promoting corporate openness, and incentivizing environmental innovations. Proactive measures to prevent water pollution can actually be incorporated through corporate social responsibility into water conservation practices of the businesses but it will be only when a more holistic approach is made to combine legal, regulatory, and voluntary actions that the India will be able to protect the water resources for the future generations.
