Corporate Veil and Group Liability in India: A Critical Study of the Group of Companies Doctrine

Abstract

This study critically examines the doctrines of corporate veil and group liability in India, with a central focus on the evolution and application of the Group of Companies Doctrine. While the principle of separate legal personality remains foundational to company law, modern corporate structures composed of complex group entities have challenged the traditional boundaries of corporate accountability. The research analyses statutory provisions under the Companies Act, 2013, key judicial pronouncements, and comparative international practices to assess how Indian courts balance corporate autonomy with the need to prevent abuse of legal personality. The study finds that although Indian jurisprudence has progressively recognized the doctrine, its application remains inconsistent due to the absence of statutory codification. The paper argues for legislative clarity, stronger corporate governance mechanisms, and a structured judicial framework to ensure fairness, transparency, and legal certainty in regulating corporate group liability.