New Delhi, March 23
The Lok Sabha has referred the Corporate Laws (Amendment) Bill, 2026, to a Joint Parliamentary Committee (JPC) for detailed scrutiny after opposition parties raised concerns over possible changes to corporate social responsibility (CSR) rules.The Lok Sabha approved the move on Monday through a voice vote after Finance Minister Nirmala Sitharaman proposed that the legislation be examined by a committee made up of members from both Houses of Parliament.
The Bill was introduced amid protests from opposition MPs, including Congress leader Manish Tewari, Trinamool Congress MP Saugata Roy and DMK member T Sumathy, who alleged that the proposed law could weaken provisions requiring companies to spend 2% of their profits on CSR activities.
Sitharaman rejected those claims, saying the fears were “unfounded” and insisting that the Bill only seeks to amend the criteria for calculating net profits, rather than altering the broader CSR framework.
She said the legislation had been drafted after two years of consultations and suggested that it be referred to a JPC for wider discussion and recommendations.
Mr Tewari argued that the Bill should instead be examined by the existing parliamentary standing committee on corporate affairs, rather than by creating a new joint panel.
Responding to the objection, Home Minister Amit Shah said opposition members had not initially asked for the Bill to be referred to a committee, but were now disputing the type of panel after the government itself proposed further scrutiny.
Speaker Om Birla then put the finance minister’s proposal to the House, and it was passed by voice vote. The members of the JPC will be named later.
The Corporate Laws (Amendment) Bill, 2026, seeks to amend the Companies Act and the Limited Liability Partnership (LLP) Act, 2008. The government says the changes are designed to improve ease of doing business, reduce compliance burdens and address gaps identified by the Company Law Committee in its 2022 report.
The proposed amendments are also aimed at decriminalising more minor corporate offences, replacing some criminal penalties with monetary fines, and simplifying regulatory procedures for businesses.
According to the government, the Bill is intended to benefit one-person companies, small firms, start-ups and producer companies, while updating the corporate compliance framework to reflect changing business practices.
